Question 1.

Use the information shown in your text for problems 8 through 13. Develop a hybrid aggregate plan for Draper using a permanent workforce of 12 employees supplemented by overtime first then temporary worker. All demand must be met each period.

(a) Show what would happen if this plan were implemented.

(b) Calculate the cost associated with this plan.

(c) Evaluate the plan in terms of cost, customer service, operations, and human resources.

Question 2.

Use the information shown in your text for problem 14. Assume overtime costs are $18 per hour.

(a) Develop a hybrid aggregate plan using the initial workforce supplemented by overtime. If demand in nay period exceeds regular-time production plus overtime production plus any beginning inventory, the company will use back orders. Calculate the cost of this plan.

(b) Another alternative is to try a level plan that uses inventory and back orders to absorb fluctuation. Calculate the cost of this plan.

(c) A third alternative being considered is to use a hybrid plan but also to close down the facility for the entire month of July. Initial workforce, overtime, inventory, and back orders can be used. Calculate the cost of this plan.

(d) Compare the three plans in terms of cost, customer service, operations, and human resources.