Welcome to the In-Class Manufacturing Game:Planning Stage

Aggregate Plan Parameters

Step 1
Average material cost per product unit $15 The Aggregate Plan
Average labor units per product unit 3

Regular time cost per labor unit $10

Overtime cost per labor unit $15

Average selling price of product unit $70

Average Inventory holding cost
per product unit per quarter $6

Initial inventory acquisition cost per product unit $45

Forecasted aggregate demand Rules

Quarter Demand ** The maximum regular time scheduled will be assumed to be your RT capacity
I 120 ** Overtime cannot exceed 50% of regular time in any given quarter
II 300 ** Your ending inventory should at least equal your initial inventory
III 180 ** You must plan to meet the forecasted aggregate demand
IV 120 ** Initial inventory cannot exceed 150 units

copyright Ammar Wright Associates 1999

Team Name: Input an aggregate production plan 0

in the highlighted cells

then push the evaluate button

Quarter Total Production Units Labot units Inventory Material 0

Demand RT OT Total RT OT Total units holding cost cost
0
I 120 0 0 0 0 0 $0 $0
II 300 0 0 0 0 0 $0 $0
III 180 0 0 0 0 0 $0 $0
IV 120 0 0 0 0 0 $0 $0

Labor cost Quarter Inventory

RT OT Total cost Sales Stockout Revenue Profit credit
$0
$0 $0 $- $- 0 120 $0 $-
$0 $0 $- $- 0 300 $0 $-
$0 $0 $- $- 0 180 $0 $-
$0 $0 $- $- 0 120 $0 $- $0
 Step 2
The Master Production Schedule
Production Information
Product A Product B Product C
Number of models 3

Change over cost $50

Number of periods Rules

per quarter 6 ** RT is leveled for each period
** Overtime can be allocated in any period
Regular time ** Overtime cannot exceed 50% of RT in any period
labor units/ period** 0 ** You may choose any mix of initial inventory
** determined from aggregate plan ** Initial inventory cannot exceed 150 units
** You must plan to meet average demand

labor Costs Selling

Model Information units Inventory/unit/per. Initial Acquisition Material Price
A 2 $0.80 $30 $10 $55
B 4 $1.20 $60 $20 $85
C 3 $1.00 $45 $15 $70

Forecasted average/period average/period average/period average/period Coef. of Var.

Demand Information Mix in quarter 1 in quarter 2 in quarter 3 in quarter 4 per period
A 20% 4 10 6 4 0.4
B 20% 4 10 6 4 0.4
C 60% 12 30 18 12 0.25
Team Name: 0

The Disaggregate Plan

determines the aggregate production per model based on the forecasted demand mix

available RT labor units

per quarter **= 0

demand Production units Initial

Model Mix quarter 1 quarter 2 quarter 3 quarter 4 Inventory
A 20% 0 0 0 0 0
B 20% 0 0 0 0 0
C 60% 0 0 0 0 0
Total ** Production units 0 0 0 0 0
Labor units 0 0 0 0
RT 0 0 0 0
OT 0 0 0 0
** as defined in the aggregate plan

This plan should be used as a guideline in the master production scheduling

Team Name: 0 0 Q1 sales 8400
Q2 sales 21000
Input a MPS in the highlighted cells available RT labor units
For quarter 1 and quarter 2 per period = 0
then push the evaluate button
Quarter 1
Production Inventory Balance
(based on average demand)
period period
Product 1 2 3 4 5 6 total Product 0 1 2 3 4 5 6 total
A 0 A -4 -4 -4 -4 -4 -4 0
B 0 B -4 -4 -4 -4 -4 -4 0
C 0 C -12 -12 -12 -12 -12 -12 0
Labor units
used 0 0 0 0 0 0 0 Initial inventory cost 0
RT 0 0 0 0 0 0 0
OT 0 0 0 0 0 0 0 Inventory holding cost 0
Cost
labor 0 0 0 0 0 0 0
Material 0 0 0 0 0 0 0 Set up cost 0
Number of **
setups 0 Inventory credit at the end of quarter 1 0
** Please count the number of setups

Quarter 2
Production Inventory Balance
(based on average demand)
period period
Product 1 2 3 4 5 6 total Product 0 1 2 3 4 5 6 total
A 0 A -4 -10 -10 -10 -10 -10 -10 0
B 0 B -4 -10 -10 -10 -10 -10 -10 0
C 0 C -12 -30 -30 -30 -30 -30 -30 0
Labor units
used 0 0 0 0 0 0 0
RT 0 0 0 0 0 0 0
OT 0 0 0 0 0 0 0 Inventory holding cost 0
Cost
labor 0 0 0 0 0 0 0
Material 0 0 0 0 0 0 0 Set up cost 0
Number of **
setups 0 Inventory credit at the end of quarter 1 0
** Please count the number of setups
 Step 3
The Material Requirement Plan
Total number of parts 4

Model Information
BOM blue green pink yellow
A 1 1 0 0
B 0 1 1 0
C 1 0 0 1

Part Information Rules

Costs blue green pink yellow ** You may choose any lot sizing policy for each part
Regular Purchase $5 $5 $15 $10 ** The order receipts must be sufficient to meet MPS
Inventory/unit/period $0.15 $0.15 $0.45 $0.30 ** You need to specify your initial part inventory
Lead time in periods 1 1 2 1 ** Initial inventory cannot exceed 150 units for any part

Cost/order/part $12
Team Name: 0

Input parts initial inventory, scheduled receipts &

scheduled releases for all parts and push evaluate button
Inventory cost per unit per period unit cost
Blue LT = 1 $0.15 $5.00
Period 0 1 2 3 4 5 6 7 8 9 10 11 12

Gross Requirement 0 0 0 0 0 0 0 0 0 0 0 0
Inventory 0 0 0 0 0 0 0 0 0 0 0 0
Net Requirement 0 0 0 0 0 0 0 0 0 0 0 0
Order Receipt **
Order Release
Order period
(1 if true) 0 0 0 0 0 0 0 0 0 0 0 0 0
** scheduled receipts in period 1 appear in initial inventory

Cost of parts order and inventory $0

Inventory cost per unit per period unit cost

Green LT = 1 $0.15 $5.00
Period 0 1 2 3 4 5 6 7 8 9 10 11 12

Gross Requirement 0 0 0 0 0 0 0 0 0 0 0 0
Inventory 0 0 0 0 0 0 0 0 0 0 0 0
Net Requirement 0 0 0 0 0 0 0 0 0 0 0 0
Order Receipt **
Order Release
Order period
(1 if true) 0 0 0 0 0 0 0 0 0 0 0 0 0
** scheduled receipts in period 1 appear in initial inventory

Cost of parts order and inventory $0

 Inventory cost per unit per period unit cost
Pink LT = 2 $0.45 $15
Period 0 1 2 3 4 5 6 7 8 9 10 11 12

Gross Requirement 0 0 0 0 0 0 0 0 0 0 0 0
Inventory 0 0 0 0 0 0 0 0 0 0 0 0
Net Requirement 0 0 0 0 0 0 0 0 0 0 0 0
Order Receipt ** **
Order Release
Order period
(1 if true) 0 0 0 0 0 0 0 0 0 0 0 0 0
** scheduled receipts in period 1 and 2 appear in initial inventory

Cost of parts order and inventory $0

Inventory cost per unit per period unit cost

Yellow LT = 1 $0.30 $10
Period 0 1 2 3 4 5 6 7 8 9 10 11 12

Gross Requirement 0 0 0 0 0 0 0 0 0 0 0 0
Inventory 0 0 0 0 0 0 0 0 0 0 0 0
Net Requirement 0 0 0 0 0 0 0 0 0 0 0 0
Order Receipt **
Order Release
Order period
(1 if true) 0 0 0 0 0 0 0 0 0 0 0 0 0
** scheduled receipts in period 1 appear in initial inventory

Cost of parts order and inventory $0

0