you will choose a local service-based organization and suggest how it might empl
ID: 327757 • Letter: Y
Question
you will choose a local service-based organization and suggest how it might employ a level, chase, or mixed strategy to best meet its demand. You should explain how your suggestion would enable the firm to best meet their typical demand in a way that minimizes cost or maximizes profit. You should also discuss the drawbacks to this strategy and if any of their competitors would employ a different strategy and why. Finally, create a sample aggregate plan for the organization for the next 12 months, making forecasts for their future demand, estimating the relevant costs and determining the estimated total cost of your plan. Make sure to upload a soft copy of the assignment here as well as bring a hard copy to class.
Explanation / Answer
I have shown here 8-period model
It will be helpful for you to understand
the costs per unit are ->
Hiring an employee cost = $100
Firing cost = $150
Inventory carrying cost =$50
Subcontracted cost =$80
Overtime cost = $ 20
the excel sheet shows all the calculations for the different plans
The excel formula
Plan-1 Chase strategy(Hiring and firing according to the requirement)
The formula used in excel
Plan-2(Level Strategy i.e. keeping constant workforce and changing inventory levels)
Formula Excel
Plan 3 MIxed Strategy
Formula Excel
Hope this will help you a lot
You can add some more periods and submit your assignment.Any doubt please comment
You can change the production to service in column names as your question asks for a service industry
That's just a name You can do it easily
Quarter Demand Cumulative Demand Plans Cost 1 220 220 Unit Increase Prod./Hiring 100 2 170 390 Decrease/Firing 150 3 400 790 Carrying inventory/Qtr 50 4 600 1390 Subcontract 80 5 380 1770 OT 20 6 200 1970 7 130 2100 8 300 2400Related Questions
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