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Aggregate Planning - Examples
Aggregate Planning - Examples
examples
San Aziz
2018-12-21
Example 1
Example 1
A large distribution center must develop a staffing plan that minimizes the
total cost using part-time workers. Use chase and level strategy and
compute the total cost. Inputs
Period 1 2 3 4 5 6
• The distribution center can hire new part-time workers in any period, but no more
than 10.
• Overtime can not exceed 20 percent of the regular time (that is 4 hour) in any period.
Inputs
Period 1 2 3 4 5 6
Actual data
The manager needs to Number of workers 6 12 18 15 13 14
layoff 4 workers, because Hires 6 6 1 The manager
she has 10 workers from Layoffs 4 3 2 needs to hire 6
start. workers,
because she
Costs
Salary 12000 24000 36000 30000 26000 28000
has 6 from the
Hiring cost 6000 6000 1000 previous
Layoff cost 2000 1500 1000 period.
Inputs
Period 1 2 3 4 5 6
• Overtime can not exceed 20 percent of the regular time (that is 4 hour) in any
period.
• The maximum use of overtime possible must occur in the peak period.
Overtime: 150 percent of the regular time. Total cost 17000 24000 39000 30000 26000 28000 $ 164 000,00
Actual data
Production 8000 12000 9000 11000
Number of workers 480 320 480 360 440
25 cars per worker.
Hires 160 80
10000/25 = 400 workers. Layoffs 160 120
Inventory 2000
Total cost (Q1-Q4) 2000000 6400000 8320000 6600000 7160000 $ 28 480 000,00
Example 2: Level strategy
Inputs
Quarter 1 2 3 4
Quarter 0 1 2 3 4
Actual data
Production 10000 10000 10000 10000
Number of workers 480 400 400 400 400
Hires 0 0
Layoffs 80 0
Inventory 2000 2000 0 1000 0
Costs
Salary 6000000 6000000 6000000 6000000
Hiring cost 0 0
480 workers from start. Layoff cost 800000 0
Inventory cost 2000000 2000000 0 1000000 0
Total cost (Q1-Q4) 2000000 8800000 6000000 7000000 6000000 $ 27 800 000,00