CHAPTER 13 AG G R EG A T E PL A N N I N G 197
(a) Plan A: Hiring and Layoff plan
Period
Demand
Production
(Increase)
(Decrease)
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
5,400
1,000
Cost
$162,000
Total Cost: $314,000
Reg. Time
Hiring
Period
Inventory
Holding
Shortage
Change
(Decrease)
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
1,100
Cost
Total Cost: $329,000
Reg. Time
Overtime
Period
Forecast
Production
Inventory
Quarter 1
Quarter 2
Quarter 4
Total
5,400
4,800
Cost
Total Cost: $222,000
13.13 Assuming that back orders are not permitted, the solution is:
Copyright ©2014 Pearson Education, Inc.
198 CHAPTER 13 AG G RE G AT E PLANNING
Total cost = $11,790
Copyright ©2014 Pearson Education, Inc.
Total cost = $1,186,810
13.15 Assuming that back orders are not permitted, the solution is:
Total cost = $627,100
200 CHAPTER 13 AG G RE G AT E PLANNING
An alternative solution is:
202 CHAPTER 13 AG G RE G AT E PLANNING
Total cost = $90,850
Note: Ending inventory of 20 units held to period 6
13.19
Jan
Feb
Mar
Apr
May
June
July
Aug
Tot
Subtotal Costs
2,260,000
Jan
Feb
Mar
Apr
May
June
July
Aug
Tot
Subtotal Costs
2,260,000
(a)
Method → Produce to demand (let workforce vary)
Shortages: Lost sales – Shortages not carried from month to month
All months →
$1,000
$1,300
$1,800
$200
$0
$0
$0
Capacities
Units
Month
Demnd
Regtm
Ovrtm
Subcon
Regtm
Ovrtm
Subcon
Holdng
Shortg
Increase
Decrease
13.18 Assuming that back orders are not permitted, one solution,
of multiple optional solutions, is:
CHAPTER 13 AG G R E G A T E PL A N N I N G 203
Cost
Cost
Cost
Cost
Summary Table
204 CHAPTER 13 AG G RE G AT E PLANNING
Ovrtm
Subcon
Holdng
0
Shortg
0
Increase
Decrease
Method → Produce to demand (let workforce vary)
Shortages: Lost sales – Shortages not carried from month to month
All months →
$1,000
$1,200
Type
Cost
Regtm
$2,260,000
Ovrtm
Subcon
Holdng
Shortg
Increase
Decrease
Ovrtm
Subcon
Holdng
0
Shortg
0
Increase
Decrease
Method → Produce to demand (let workforce vary)
Shortages: Lost sales – Shortages not carried from month to month
All months →
$1,000
$1,200
Type
Cost
Regtm
$2,260,000
Ovrtm
Subcon
Holdng
Shortg
Increase
Decrease
13.20 (a, b) Aggregate plan and its costs
Summary Table—Overtime Costs: $1400
Type
Units
Cost
Regtm
2,260
$2,260,000
Estimated
Reg. time
Billable
billable
Reg. Time
“Overtime”
Overtime
Forrester
Forrester
Month
hours
CPAs
hours
cost
hours
cost
hours
cost
198 CHAPTER 13 AG G RE G AT E PLANNING
Total cost = $11,790
Copyright ©2014 Pearson Education, Inc.
Total cost = $1,186,810
13.15 Assuming that back orders are not permitted, the solution is:
Total cost = $627,100
200 CHAPTER 13 AG G RE G AT E PLANNING
An alternative solution is:
202 CHAPTER 13 AG G RE G AT E PLANNING
Total cost = $90,850
Note: Ending inventory of 20 units held to period 6
13.19
(a)
Method → Produce to demand (let workforce vary)
Shortages: Lost sales – Shortages not carried from month to month
All months →
$1,000
$1,300
$1,800
$200
$0
$0
$0
Capacities
Units
Month
Demnd
Regtm
Ovrtm
Subcon
Regtm
Ovrtm
Subcon
Holdng
Shortg
Increase
Decrease
13.18 Assuming that back orders are not permitted, one solution,
of multiple optional solutions, is:
CHAPTER 13 AG G R E G A T E PL A N N I N G 203
Summary Table
204 CHAPTER 13 AG G RE G AT E PLANNING
13.20 (a, b) Aggregate plan and its costs
Summary Table—Overtime Costs: $1400
Type
Units
Cost
Regtm
2,260
$2,260,000
Estimated
Reg. time
Billable
billable
Reg. Time
“Overtime”
Overtime
Forrester
Forrester
Month
hours
CPAs
hours
cost
hours
cost
hours
cost