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Questions OM

The document presents two aggregate planning problems. The first problem involves determining the production plan with minimum total cost for a bus maker given monthly forecasts and production constraints. The second problem involves balancing an assembly line to achieve a target output given task times and precedence relationships between tasks.

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30 views2 pages

Questions OM

The document presents two aggregate planning problems. The first problem involves determining the production plan with minimum total cost for a bus maker given monthly forecasts and production constraints. The second problem involves balancing an assembly line to achieve a target output given task times and precedence relationships between tasks.

Uploaded by

Rina Kang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Question 1

Use Microsoft Excel and the trail-and-error approach to solve this aggregate planning problem.
Company ABC is a bus maker. The marketing department has made the following forecasts (in units)
for its products:
Month March April May June July August Septemb Total
er
Forecast 50 44 55 60 60 40 50 359
s

The following information is available for the aggregate planning exercise:


Regular labour cost $240 per unit
Overtime labour cost $360 per unit
Regular capacity 40 units per month, using 5 workers
Overtime capacity 8 units per month
Holding cost $30 per unit per month
Back-order cost $100 per unit per month
Beginning inventory 0
Desired ending inventory 0
Hiring cost $2,000 per worker

Requirements:
i (i) First develop the initial plan. What is the problem of this initial plan?
ii (ii) Then, develop alternative plan(s) to find the production plan with minimum total cost.
(Hints for (ii): It may be cheaper to add one new worker to the regular crew, and use some overtime.)

Questions 2

As part of a major plant renovation project, the industrial engineering department has been asked to
balance a revised assembly line to achieve an output rate of 240 units per eight-hour day. Task times
and precedence relationships are as follows:
Task Duration (Minutes) Precedes Task
a 0.2 b
b 0.4 d
c 0.2 d
d 0.4 g
e 1.2 f
f 1.2 g
g 1.0 ---
(Note: The precedence relationships given by the above table indicate that task a must be completed before task b,
and task b must be completed before task d and so on.)

Requirements:
a. Draw the precedence network diagram.

b. Determine the required cycle time.

c. Determine the minimum number of workstations needed.

d. Assign the tasks to workstations using the heuristic rule “Assign the task with the most
followers.” Use the heuristic rule “Assign the task with the longest time” as a tiebreaker. If a tie still
exists, choose randomly.

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