Production Management TOPIC2:InventoryManagement

PROBLEMS

1. Find the optimal lot value and reorder point for a basic model of
fixed order quantity, using the following data:

Annual demand: 1,000 units.

Unit acquisition cost: €0.1.
Unit possession cost: 1 monetary unit/year.
Issuance cost: 5 u.m./order.
Supply time: 15 days.
Management period: 250 working days.

In addition, calculate the lead time, the number of orders to

to be carried out during the planning horizon and the total cost of management of
inventory.

If the supply time were 40 days, what is the time for

replenishment?

Solution: Machuca p.465-6

Economic lot:

Q* = √2 x cex D = √2 x 5 x 1000 = 100 units

c pxθ 1x1

Pp = d x Ts = 1000/250 x 15 days = 60 units

d = 1000/250 = 4 units/days

3) TR
f = D/Q* = 1000/100 = 10 orders

TR= 250 /10 = 25 days

It can also be calculated as: d= 4 units/day; TR= 100 /4 = 25 days

CT = Ca + Ce + Cp = 0.1·1000 + 5·10 + 1·100/2·1 = 200 um.

If TS = 40 days TR < TS

Tsp = TS - TR = 40 - 25 = 15 days

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Production Management THEME2:InventoryManagement

A company A manages its inventory through a model

basic fixed order quantity, which is reviewed every six months based on the
data consumption forecast for the semester.

The data for the next six months (each of 30 days) is as follows:

Total demand: 180,000 units.

Unit acquisition cost: €0.1.
Unit possession cost: €0.072/month.
Emission cost: 120€/order.
Tiempo que el proveedor tarda en suministrar las unidades desde su
request: 8 days.

With this information, it is desired to know:

The economic batch size.

2. The replenishment time.
3. The number of orders to be placed during the planning horizon.
4. The reorder point.
5. The total cost of inventory management.

Solution:
Solution Problem 2: Alfalla

1. Economic lot size.

Q* = √2 x candx D
c pxθ
Q* = √2 x 120 x 180,000 = √43,200,000 = √100,000,000 = 10,000 data
0.072 x 6 0.432

2. Replenishment time.

TR = Q*
D
d = D = 180.000 = 1.000 data per day.
θ
TR = Q* = 10,000 = 10 days
d 1.000

3. Number of orders to be placed during the planning horizon.

ƒ=D
Q*

ƒ = D = 180.000 = 18 orders

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PRODUCTION MANAGEMENT TOPIC2:InventoryManagement

Q* 10,000

4. Reorder point.

Pp = d x TSp

Pp = 1.000 x 8 = 8.000 data

5. Total cost of inventory management.

Ct a=cax D

Cta0.1 x 180,000 = 18,000 €

Cte=cex D
Q*

Cte= 120 x 180.000 = 2.160 €

10,000

Ctp=cpx Q* x θ
2

Ctp0.072 x 10,000 x 6 = 2,160 €

2

Ct = Cta+ Cte+ Ctp18.000 + 2.160 + 2.160 = 22.320 €

A company B manufactures a certain product whose final assembly is

It is on an assembly line that works daily. One of the components
This item is produced in another department of the company at a rate of 100.
daily units while the assembly line uses it at a rate of 40
units/day. If the unit cost of issuing an order is 50 monetary units and the
the unit holding cost is 0.5 currency units/year, it is desired to know the point of
order and the optimal lot to request knowing that the supply time is 35
days. The horizon to consider for management is 10 months of 25 days
working days/month.

Solution: Machuca p. 467

Economic batch
Q* = √2 x cex D x p = Q* = √2 x 50 x 10,000 x 100 = 2,000 units.
C pxθx (p - d) 0,5 x (10/12) x (100 – 40)

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PRODUCTION MANAGEMENT TOPIC2:InventoryManagement

D = 40*10*25 = 10,000 units

2) Reorder point:

Manufacturing time = Q/p = 2,000/100 = 20 days

f = D/Q= 10.000/2000= 5
TR= 250 /5 = 50 days
TS= 35 days
Pp= (p-d) * ( TR-TS) = 60 * ( 50 – 35) = 900 units

Pp

------------------------------------------------------------------
35-20=15 days t = 50-20=30 days
t = 20 days TS= 35 days

TR= 50 days

4. Company C is engaged in the manufacturing and packaging of cleaning products.

One of its products is the J bleach in two liters, whose packaging is made in the
same company. When necessary, 2,700 containers are produced daily,
while 1,800 liters of bleach are packaged every day.
The company has estimated the manufacturing cost of each container at €0.2, being
the launch cost of each order is €82.55 and the storage cost of
each container costs €1.24 per year. Knowing that 4 days pass since then.
request a new batch of containers until their manufacturing begins and that the
planning horizon is 365 days (1 year with 52 weeks), calculate,
using a fixed quantity order model:

1. The batch size of containers that the company must produce for it to
inventory cost should be as low as possible.
2. The maximum level of containers that will be maintained in the company.
3. The number of containers that must be in stock for it to be requested.
manufacturing of a new batch.
4. The number of batches the company will have to produce throughout the year.
5. The existing inventory two days after starting to manufacture the containers,
after the consumption of that day has been made.
6. The total cost of the inventory.

Solution Problem 4. Alfalla

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PRODUCTION MANAGEMENT TOPIC2:InventoryManagement

1. Size of the batch of containers that the company must manufacture in order to
inventory cost should be as low as possible.

Q* = √2 x cex D x p
C pxθx (p - d)

D = d x θ = 900 x 365 = 328,500 containers

Q* = √2 x 82.55 x 328,500 x 2,700 = 8,099.8 ≈ 8,100 containers

1,24 x 1 x (2.700 – 900)

2. Maximum level of packaging that will be maintained in the company.

Smáx = (p – d) x t

Q* = p x t t = Q* = 8.100 = 3 days
p 2.700

Smáx = (2.700 – 900) x 3 = 5.400 envases

3. Number of containers that must be in stock for a request to be made.

manufacturing of a new batch.

TR = Q* = 8.100 = 9 days
d 900

Pp = d x TSp

Pp = 900 x 4 = 3,600 containers (after reaching the maximum stock)

4. Number of batches that LAVANDA will have to produce throughout the year.

f=D
Q*

ƒ = 328.500 = 40.56 orders

8,100

5. Inventory existing 2 days after starting to manufacture the containers, after

having made the consumption of that day.

p - d = 2.700 - 900 = 1.800 containers

NI = 2 x (p – d) = 2 x (2.700 – 900) = 3.600 containers

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PRODUCTION MANAGEMENT TOPIC2:InventoryManagement

6. Total inventory cost.

Cta=cax D

Cta= 0.2 x 328,500 = 65,700 €

Cte=cex D
Q*

Cte= 82,55 x 328.500 = 3.347,86 €

8.100

Ctp=cp(p - d) x Q* x θ
2xp

Ctp = 1.24 x ( 2700 - 900) x 8100 x 1 = 3,348 €

2 x 2.700

Ct = Cta+ Cte+Ctp65,700 + 3,347.86 + 3,348 = 72,395.86 €

5. Calculate the economic lot of a product whose manufacturing cost

decreases from 1,000 units to 925 units when the order is equal to or exceeds 1,000
units. The cost of issuing the order is 35,000 monetary units. The demand is
2,400 units per year and the coefficient of proportionality between the cost of
possession and the acquisition cost is 0.6 * 10-3The management horizon will be
of a year (360 days).

Solution: Machuca p. 469

2 ce D 2 35,000 2400
Q1* 882 units
cai 0.0006 1000 360

2 ce D 2 35,000 2400
Q1* 917unidades
cai 0.0006 925 360

Q1* < Q2* < a= 1000 units Economic lot = 1,000 units

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Production Management TOPIC2:InventoryManagement

6. A company D stores components of type Z. Recently, it has...

offered a quantity discount program for these components. The
The normal price of the component without discounts is €5/unit. This plan of
the discount is recorded in the following table:

Code Of Quantity of Discount Price with

discount order (%) discount
1 0 to 999 without discount 5€
2 1.000 to 1.999 4 4,80€
3 2,000 or more 5 4,75€

The launch cost of an order is €49; the annual demand is 5,000.

units and the coefficient of proportionality between the cost of ownership and the
The acquisition cost is 0.2. What order quantity will minimize the cost?
total inventory?

7. Calculate the value of the optimal period in a fixed period model of the
following characteristics:

Annual demand for the product: 1,500 units.

Unit possession cost: 5 €.
Cost of issuing an order: 100€/order.

Solution: Machuca p. 471

2 ce 2 100 1
T* 0.163years
cp D 5 1500

Approximately: 59 days.

8. The company E is currently planning the inventory of one of

those items. This presents a demand that can be considered continuous,
employing the basic fixed period model in its management. It is known that the
the daily demand for the item amounts to 100 units, the unit purchase cost is
from 1 €, the maintenance of a component in stock implies for the company
€0.06 per day, the issuance of a new batch incurs a cost of €75 and the
the supplier takes 6 days to supply the company with a new order from its
request. Knowing that the planning horizon is 250 days (equivalent to
in a year), it is desired to know:

The optimal time between orders.

2. The number of orders that the company will have to make during the
planning horizon.
3. The maximum level of stock that is theoretically replenished.
4. The inventory level when requesting a new order.

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PRODUCTION MANAGEMENT TOPIC2:InventoryManagement

5. The size of the lot to be requested.

6. The total cost of inventory management.

Solution Problem [Link]

1. Optimal time between orders.

T* = √2 x cexθ
c px D

D = d x θ = 100 x 250 = 25,000 units

T* = √2 x 75 x 250 = √37,500 = √25 = 5 days

0,06 x 25.000 1,500

2. Number of orders that the company will have to place during the horizon
of planning.

ƒ=θ
T*

ƒ = θ = 250 = 50 orders
T* 5

3. Maximum stock level that is theoretically replenished.

TSpTS - E TS x TR = 6 - E 6 x 5 = 6 - 1 x 5 = 1 day
TR 5

NMS = 100 x (5 + 1) = 600 units

4. Inventory level when placing a new order.

NI = 100 x 1 = 100 units

5. Lot size to request.

a) Q = NMS - NI = 600 - 100 = 500 units

b) Q = d x T* = 100 x 5 = 500 units

6. Total cost of inventory management.

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Production Management TOPIC2:InventoryManagement

Cta=cax D

Cta1 x 25,000 = 25,000 €

Cte=cexθ
T*

Cte= 75 x 250 = 3,750 €

5

Ctp=cpx D x T*
2

Ctp0.06 x 25,000 x 5 = 3,750 €

2

Ct = Cta+ Cte+ Ctp25,000 + 3,750 + 3,750 = 32,500 €

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Production Management TOPIC3:AggregatePlanning

PROBLEMS

1. Company A, a furniture manufacturer, is currently preparing

the Aggregate Production Plan for the MC1 product family for the
next six months. To do this, it knows the productive days and the forecast of
medium-term demand, which are the following:

ENERO FEBRERO MARZO ABRIL MAYO JUNIO

Productive Days 22 18 21 21 22 20
Previsión a m/P 700 700 1.550 1,500 1,600 1,200

It is also known that there are 200 units of pending orders to be served.
The company also has committed orders with customers.
In the month of January, there are some orders that have already been signed and deemed final of 800.
MC1 units. In February, so far, there are orders.
committed for a total of 100 units. For the month of April, and also
So far, about 50 units of commitments have been registered.

There is no unit in inventory, although the company wishes to maintain a

safety stock of 100 units during the planning horizon. The
The different costs incurred by the company are summarized below:

Concept Amount
Inventory holding cost 80 u.m./day and month
Cost per subcontracted unit
(overcost on regular production) 100 u.m./city.
Cost of regular hour 40 u.m./he.
Cost of overtime 50 u.m./h.e.
Cost of idle hour 45 u.m./h.e.
Hiring cost 500 u.m./worker
Dismissal cost 900 u.m./worker

Other data to consider for planning are the following:

The number of workers currently matches the fixed workforce.

of the company, which has 22 workers. The maximum admissible workforce
There are 32 employees between permanent and contracted.
The regular workday is 8 hours.
Each unit of the MC1 family requires 4 hours of effort for its manufacturing.

In addition, we must take into account that the company has the following policies:

No permanent worker can be dismissed.

Overtime is limited to a maximum of 10% of the workday.
regular.

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 Production Management TOPIC3:AggregatePlanning

Idle hours are not allowed.

Late service is not accepted.
Before seeking external capacity, in cases where it is necessary,
own resources (inventories and hours) will be maximized.
extras).

With all this information, it is requested:

1. Determine the Production Needs Plan for the horizon

of planning considered.
2. Develop and evaluate the Aggregate Production Plan applying a
hunting strategy (adapting to market needs).
3. Develop and evaluate the Aggregate Production Plan following a
leveling strategy (constant labor).
4. Compare both alternatives based on their costs and levels of
service, determining which would be more beneficial for the company.

Note: If necessary, round the hours and production to whole numbers.

always rounding down by default.

SOLUTION

JANUARY FEBRUARY MARCH APRIL MAY JUNE TOTAL

Productive days 22 18 21 21 22 20 124
Demand forecast for M/P 700 700 1.550 1,500 1.600 1,200 7.250
Committed orders 800 100 50 950
Pending orders 200 200
Inventory adjustment (SS-I0 ) 100 0 0 0 0 0 100
PNP 1.100 700 1.550 1,500 1,600 1,200 7.650

2) JANUARY:
(PNP Inventory
I i 1) x h.e. per unit
Number of necessary
i workers
h.e. per worker and working day x number of productive idays

January: Number of workers = (1100*4)/8*22 = 25 workers

Labor cost in January:

Hiring = 3 workers * 500 um/worker = 1500 um

Necessary Hours = 1100 units * 4 hours/unit = 4400 hours (in regular shift)

No idle hours allowed: available hours = worked hours.

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PRODUCTION MANAGEMENT TOPIC3:AggregatePlanning

Total cost of hours worked = 4400 h.e * 40 um/h.e = 176,000 um.

FEBRUARY:
Number of workers = (700*4)/8*18 = 19.4 workers

Min: 22 workers. Fixed employees cannot be laid off. Number of workers = 22

January 3 hired that we dismissed: Cost: 3 workers * 900 units/worker = 2700 units.

Available hours: 22 workers * 8 hours/day * 18 days = 3,168 hours hours

worked regulars.

Total cost of hours worked = 3168 h.e * 40 um/h.e = 126,720 um.

Unidades producidas: 3168 h.e / 4 h.e/ud.= 792 unidades

PNP= 700 units 792 - 700 = 92 units in inventory that cause

cost of ownership:
Cp = 92 units * 80 um/unit = 7,360 um.

MARCH:
Number of workers = [(1550 - 92) * 4] / 8 * 21 = 34.7 workers

Max: 32 workers. Actual number of workers = 32 workers.

We hired 10 people: Cost: 10 jobs * 500 units/job = 5,000 units.

Available hours: 32 workers * 8 working hours/day * 21 days = 5,376 hours hours

worked regulars.

Total cost of hours worked = 5,376 h.e * 40 um/h.e = 215,040 um.

Unidades producidas: 5.376 h.e /4 h.e/ud.= 1.344 unidades

PNP= 1.458 units 1.458 - 1.344 = 114 units that I am missing

Overtime limit = 10% regular hours = 10% 5,376 overtime hours = 537.6 overtime hours.

These hours allow for the production of: 537.6 h.e / 4 h.e/unit = 134.4 units

We were missing 114 units. we are within the limit.

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Production Management TOPIC3:AggregatePlanning

Overtime: 114 units * 4 overtime hours/unit = 456 overtime hours

Cost of overtime hours worked = 456 overtime hours * 50 currency units/overtime hour = 22,800 currency units.

Inventario= 0 uds.

APRIL:

PNP= 1500 units.

Number of workers = (1500*4)/8*21 = 35.7 workers

Max limit: 32 workers. Template Variation = 0

Regular hours in April (= in March) = 5,376 h.e

Regular production (in March) = 1,344 units.

156 units would be missing. (1500 - 1344)

Overtime limit = 10% regular working hours = 10% 5,376 overtime hours = 537.6 overtime hours.

These hours allow the production of: 537.6 h.e / 4 h.e/unit = 134.4 units

We were missing 156 units. we are out of bounds In addition to overtime

we subcontract units

Overtime: 134 units * 4 hours/unit = 536 hours

Cost of extra hours worked = 536 extra hours * 50 units/hour = 26,800 units.

Subcontracting: 22 units (156-134)

Cost of subcontracted units: 100 more than it would cost in a shift

regular.
If on a regular shift: 4 h.e * 40 = 160 um/ud.
Subcontracting = 160 + 100 = 260 um/ud

Total subcontracting cost = 22 units * 260 currency units/unit = 5,720 currency units

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Production Management TOPIC3:AggregatePlanning

MAY
Number of workers = (1600*4)/8*22 = 36.4 workers.

Max limit: 32 workers. Template Variation= 0

Available hours: 32 workers * 8 hours/day * 22 days = 5,632 hours hours

worked regulars.

Total cost hours worked = 5.632 h.e * 40 um/h.e = 225.280 um.

Units produced: 5,632 h.e / 4 h.e/unit = 1,408 units

PNP= 1.600 unidades 1,600 - 1,408 = 192 units that I am missing

Overtime limit = 10% regular hours = 10% 5,632 overtime hours = 563.2 overtime hours.

These hours allow for the production of: 563.2 h.e / 4 h.e/unit = 140.8 units

We were missing 192 units. we are out of bounds In addition to overtime

we subcontract units

Overtime: 140 units * 4 hours/unit = 560 hours

Cost of overtime hours worked = 560 overtime hours * 50 units/hour = 28,000 units.

Subcontracting: 52 units (192-140)

Cost of subcontracted units: 100 more than it would cost during the workday
regular.
If in regular working hours: 4 h.e * 40 = 160 um/ud.
Subcontracting = 160 + 100 = 260 um/ud

Total cost subcontracting = 52 units * 260 um/unit = 13,520 um

JUNE:

PNP= 1200 uds.

Number of workers = (1200*4)/8*20 = 30 workers.

No. of jobs Previous month = 32 jobs.

Variation: -2 work. 2 workers are leaving.
Severance cost: 2 * 900 = 1800 um

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PRODUCTION MANAGEMENT TOPIC3:AggregatePlanning

Horas Necesarias = 1200 uds * 4 h.e./ud= 4.800 h.e (en jornada regular)

Available hours: 30 workers * 8 hours/day * 20 days = 4,800 hours

Regular Production = 1200 units.

Total cost hours worked = 4,800 h.e * 40 um/h.e = 192,000 um.

2. Develop and evaluate the Aggregate Production Plan following a strategy.

of leveling (constant labor).

We calculate the number of workers needed to carry out the production

total for the entire planned period, to maintain a constant workforce and due to
the regular daily production.

Number of Workers Needed = 7650*4/8*124 = 30.8 workers 31 workers all

the months.

JANUARY

Current workforce = 22 workers.

Necessary workforce = 31 workers.
9 workers are hired Staff variation: 9 workers
Hiring cost = 9 work units * 500 monetary units/work unit = 4500 monetary units.

Regular work hours: 31trab* 8 h.e* 22 days = 5,456 hours

Cost of regular hours = 5.456 hours * 40 um/h.e. = 218,240 um

Production in regular shift = 5.456 hours / 4h/unit = 1.364 units

PNP enero= 1.100 unidades.
Diferencia = 1.364 – 1.100 = 264 unidades Inventory
Ownership costs = 264 units * 80 u.m./city and month = 21,120 um.

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PRODUCTION MANAGEMENT TOPIC3:AggregatePlanning

FEBRUARY:

Required staff = 31 workers.

Regular work hours: 31 workers * 8 hours/day * 18 days = 4,464 hours

Cost of regular hours = 4,464 hours * 40 um/h.e. = 178,560 um

Production in regular shift = 4,464 hours / 4 hours/unit = 1,116 units

Final inventory of January = 264 units.
PNP February = 700 units.

Inventory February = 1,116 + 264 - 700 = 680 units.

If February = If January + Regular Production February + Extra Production February + Subcontracting February - PNP February

Ownership costs = 680 units * 80 currency units / city and month = 54,400 currency units.

MARCH:

Necessary staff = 31 workers.

Regular work hours: 31trab* 8 h.e* 21 days = 5,208 hours

Cost of regular hours = 5,208 hours * 40 um/h.e. = 208,320 um

Production in regular shift = 5,208 hours / 4h/unit = 1,302 units

Final inventory for February = 680 units.
PNP marzo= 1.550 unidades

Inventario marzo = 1.302 + 680 – 1.550 = 432 unidades.

If March = If February + Prod. Reg. March + Prod. Extra March + Subcontract. March - PNP March

Ownership costs = 432 units * 80 currency units/ city and month = 34,560 currency units.

APRIL:
Required workforce= 31 workers.

Regular work hours: 31trab* 8 h.e* 21 days = 5,208 hours

Cost of regular hours = 5.208 hours * 40 um/h.e. = 208,320 um

Production in regular shift = 5,208 hours / 4 hours/unit = 1,302 units

Inventario final de marzo = 432 unidades unidades.
PNP abril= 1.500 unidades
Inventory April = 1,302 + 432 - 1,500 = 234 units.

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Production Management TOPIC3:AggregatePlanning

Ownership costs = 234 units * 80 currency units / city and month = 1,920 currency units

MAY

Required staff = 31 workers.

Regular work hours: 31 works * 8 hours each * 22 days = 5,456 hours

Cost of regular hours = 5.456 hours * 40 um/h.e. = 218.240 um

Production in regular shift = 5.456 hours / 4h/unit = 1.364 units

Inventario final de abril = 234 unidades
PNP mayo= 1.600 unidades
Inventory May = 1,364 + 234 - 1,600 = -2 units.
Delayed service is not allowed, and therefore we have to adopt one of
adjustment measures: overtime/subcontracting.
Inventory at the end of May = 0 units.

Extraordinary work hours = 2 units * 4 hours/unit = 8 hours

Limite = 10% jornada regular = 10%5456 hrs= 545.6 horas
Coste de horas extraordinarias= 8 hr.* 50 um/h.e = 400 um

JUNIO

Required staff = 31 workers.

Regular working hours: 31trab* 8 h.e* 20 days = 4,960 hours

Cost of regular hours = 4,960 hours * 40 um/h.e. = 198,400 um

Production in regular shift = 4,960 hours / 4 hours/unit = 1,240 units

Final inventory of May = 0 units
PNP junio= 1.200 unidades

Inventario junio= 1.240 – 1.200= 40 unidades

Ownership costs = 40 units * 80 currency units/city and month = 3,200 currency units.

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PRODUCTION MANAGEMENT TEMA3:PlanificaciónAgregada

4. Compare both alternatives in terms of their costs and service levels.

determining which would be more beneficial for the company:

CRITERIA: LEVEL OF SERVICE AND COST.

Service level = Number of units served on time

Total number of PNP units

In both options, the delay of shipments is not allowed; therefore, NS = 100%

Coste:

Total cost of hunting strategy ... 1,265,280 um

Total cost leveling strategy……………………1,366,980 um

Savings with hunting strategy..........................101,700 um

PROBLEM 2

Company B is dedicated to the manufacturing of mobile phones. This company

wants to develop the Aggregate Production Plan for the first six months
of the year, knowing the following costs:

Concept Amount
Inventory holding cost 5 u.m./unit and month
Inventory breakage cost 30 u.m./day and month
Subcontracting cost 100 u.m./day.
Hiring cost 500 u.m/trabajador
Termination cost 1000 u.m/per worker
Cost of the hour in regular shift 12.50 units
Cost of the hour in overtime 18.75 u.m
Cost of idle hour 14.50 currency units

The initial workforce consists of 10 operators, with a regular working day of

8 hours of work. Each phone requires 4 hours of work. The Needs Plan
of Production, as well as the working days in each month, are shown in the table
that is offered below:

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PRODUCTION MANAGEMENT TOPIC3:AggregatePlanning

ENERO FEBRERO MARZO ABRIL MAYO JUNIO

Working days 20 20 22 20 21 21
PNP 300 600 630 800 900 800

With all this information, you are asked to:

1. Evaluate the costs involved in adopting an Aggregate Plan
elaborated following a hunting strategy, in which it is desired to manufacture just
what is needed.
2. Evaluate, likewise, the effect that a leveling strategy would have on the
that the mismatches between production and production needs will go to
inventory (positive or negative).
Which of the two strategies would you recommend to the company?

SOLUTION:

1)
January
(PNP i  Inventoryi 1) x h.e. per unit
Number of necessary
i jobs
per worker and workday x number of productive days i

Number of workers = (300*4)/8*20 = 7.5 workers

Plantilla real= 8 trabajadores; Variación = -2 trabajadores
Labor cost: Dismissal = 2 workers * 1000 um/worker = 2000 um
Regular working hours: 8 workdays * 8 hours a day * 20 days = 1,280 hours
Required Hours = 300 units * 4 work hours/unit = 1200 work hours (in regular shift)
Idle hours: 1280 - 1200 = 80 hrs.
Cost of idle hours = 80 * 14.50 um/h = 1,160 um
Total cost of worked hours = 1200 h.e * 12.50 um/h.e = 15,000 um.

February:
Number of workers = (600*4)/8*20 = 15 workers
Plantilla real= 15 trabajadores; Variación = 7 trabajadores
Labor cost: Hiring = 7 workers * 500 um/worker = 3500 um
Regular working hours: 15 workers * 8 hours/day * 20 days = 2400 hours
Required Hours = 600 units * 4 h.e./unit = 2400 h.e (during regular work hours)
Total cost of hours worked = 2400 h.e * 12.50 um/h.e = 30,000 um.

March:
Number of workers = (630*4)/8*22 = 14.3 workers
Plantilla real= 15 trabajadores; Variación = 0 trabajadores
Regular hours: 15 workers * 8 hours/day * 22 days = 2640 hours
Necessary Hours = 630 units * 4 h.e./unit = 2520 h.e (in regular shift)
Idle hours: 2640 - 2520 = 120 hours.

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Production Management TOPIC3:AggregatePlanning

Cost of idle hours = 120 * 14.50 currency unit/hour = 1,740 currency units

Total cost of hours worked = 2520 h.e * 12.50 um/h.e = 31,500 um.

April
Number of workers = (800*4)/8*20 = 20 workers
Plantilla real= 20 trabajadores; Variación = 5 trabajadores
Labor cost: Hiring = 5 workers * 500 units/worker = 2500 units
Regular hours: 20 work* 8 h.e* 20 days = 3200 hours
Necessary Hours = 800 units * 4 hours/unit = 3200 hours (in regular shift)
Total cost of hours worked = 3200 h.e * 12.50 um/h.e. = 40,000 um.

May:
Nº trabajadores= (900*4)/8*21 = 21,4 trabajadores
Plantilla real= 22 trabajadores; Variación = 2 trabajadores
Labor cost: Hiring = 2 workers * 500 um/worker = 1000 um
Regular working hours: 22 work* 8 h.e* 21 days = 3696 hours
Horas Necesarias = 900 uds * 4 h.e./ud= 3600 h.e (en jornada regular)
Idle hours: 3696 - 3600 = 96 hrs.
Cost of idle hours = 96 * 14.50 um/h = 1,392 um
Total cost of worked hours = 3600 h.e * 12.50 um/h.e = 45000 um.

June:
Nº trabajadores= (800*4)/8*21 = 19,1 trabajadores
Plantilla real= 20 trabajadores; Variación = - 2 trabajadores
Labor cost: Dismissal = 2 workers * 1000 um/worker = 2000 um
Regular working hours: 20 work* 8 h.e* 21 days = 3360 hours
Necessary hours = 800 units * 4 h.e./unit = 3200 h.e (in regular working hours)
Idle hours: 3360 - 3200 = 160 hrs.
Cost of idle hours = 160 * 14.50 um/h = 2,320 um
Total cost of hours worked = 3200 h.e * 12.50 um/h.e = 40000 um.

11
PRODUCTION MANAGEMENT TOPIC3:AggregatePlanning

2)

Number of Workers Needed = 4030*4/8*124 = 16.3 workers 17 workers all

the months.

January
Current staff = 10 workers.
Required staff = 17 workers.
7 workers are hired Staff variation: 7 workers
Hiring cost = 7 workers * 500 um/worker = 3500 um.
Regular working hours: 17 workers * 8 hours each * 20 days = 2,720 hours
Cost of regular hours = 2720 hours * 12.50 currency/unit = 34000 currency units
Production in regular shift = 2720 hours / 4 hours/unit = 680 units
PNP enero= 300 unidades.
Difference = 680 - 300 = 380 units Inventory
Ownership costs = 380 units * 5 u.m./unit and month = 1900 um.

February
Current workforce = 10 workers.
Required workforce = 17 workers.
Regular working hours: 17 workers * 8 hours each * 20 days = 2,720 hours
Coste de horas regulares= 2720 horas *12,50 um/h.e. = 34000 um
Production in regular shift = 2720 hours / 4 hours/unit = 680 units
PNP febrero= 600 unidades.
Difference = 680 - 600 = 80 units Inventory
Ownership costs = (380 + 80) units * 5 u.m./city and month = 2300 um.

March:
Current staff = 10 workers.
Required workforce = 17 workers.
Regular work hours: 17trab* 8 h.e* 22 days = 2992 hours
Coste de horas regulares= 2992 horas *12,50 um/h.e. = 37500 um
Production in regular shift = 2992 hours / 4 hours/unit = 748 units
PNP marzo= 630unidades.
Diferencia =748 – 630 = 118 unidades Inventory
Ownership costs = (380 + 80 + 118) units * 5 u.m./city and month = 2890 um.

April:
Current workforce= 10 workers.
Required workforce = 17 workers.
Regular working hours: 17 workers * 8 hours/day * 20 days = 2720 hours
Cost of regular hours = 2720 hours * 12.50 um/h.e. = 34000 um

12
PRODUCTION MANAGEMENT TOPIC3:AggregatePlanning

Production in regular shift = 2720 hours / 4 hours/unit = 680 units

PNP April = 800 units.
Inventario meses anteriores= 578 unidades (380 + 80 + 118)
Diferencia = 578 + 680 - 800 = 458 unidades
Ownership costs = 458 units * 5 u.m./city and month = 2290 u.m.

May:
Current workforce = 10 workers.
Required workforce = 17 workers.
Regular shift hours: 17 workers * 8 hours each * 21 days = 2856 hours
Coste de horas regulares= 2856 horas *12,50 um/h.e. = 35700 um
Production in regular shift = 2856 hours / 4h/unit = 714 units
PNP May = 900 units.
Previous months inventory = 458 units
Difference = 458 + 714 - 900 = 272 units
Ownership costs = 272 units * 5 currency units/unit and month = 1360 currency units.

June:
Current staff= 10 workers.
Necessary workforce = 17 workers.
Regular hours worked: 17 workers * 8 hours each * 21 days = 2856 hours
Cost of regular hours = 2856 hours * 12.50 um/h.e. = 35700 um
Production in regular shift = 2856 hours / 4h/unit = 714 units
PNP June = 800 units.
Previous months inventory = 272 units
Diferencia = 272 + 714 - 800 = 186 unidades
Ownership costs = 186 units * 5 currency units / city and month = 930 currency units.

13
PRODUCTION MANAGEMENT THEME3:AggregatePlanning

Which of the two strategies would you recommend to the company?

Service level: 100% in both alternatives

CT = 219.112 um in hunting strategy
CT = 225.970 um in leveling strategy.
Saving with hunting strategy = 6.858 um.

3. Company K is currently developing the Aggregate Plan

Production for the next three quarters of the BR family, whose
Production needs and productive days are the ones that appear in the table.
next:

Trim.1 Trim.2 Trim.3

Productive Days 57 69 54
Forecast to m/P 620 680 680

General data:
The regular workday is 8 hours.
Each unit of the family requires 20 hours of labor for its manufacture.
work.
There are currently 25 workers on the staff. This is the maximum staff level.
company.
The fixed workforce consists of 20 workers.

Costes:
Labor in regular shift: 16 u.m/h.e.
Labor on overtime: 20 u.m./h.e.
Subcontracting: 150 u.m. more than the cost of producing one unit.
regular working day.
Hiring: 350 units of currency per temporary worker.
Dismissals: 150 u.m. per temporary worker.
• Possession: 10 u.m. per unit and day.

Company Policies:
Permanent workers will not be laid off.
If necessary, choose the cheapest temporary adjustment measure.
Overtime hours are limited by agreement to 12% of the workday.
regular.
Breaks and idle hours are not allowed.

It is requested to develop the Aggregate Production Plan using a strategy

of leveling in which the daily production is also kept constant
obtained with overtime, if it were necessary. Calculate the cost it generates.
said plan.

14
Production Management TOPIC3:AggregatePlanning

SOLUTION:

Number of workers needed = 1980*20/8*180 = 27.5 workers

Maximum staff: 25 workers

Variation = 0 workers
Regular work hours: 25 work* 8 h.e* 180 days = 36,000 hours
Production in regular shift = 36,000/20 = 1,800 units.
Daily production in regular shift = 1800 units / 180 days = 10 units/day.
PNP= 1980 hrs.
Difference = 1980 - 1800 = 180 units we have to achieve them in the following way
cheaper
Overtime:
Overtime = 180 units * 20 h/unit = 3600 hours.
Limit = 12% 36,000 hours = 4,320 hours > 3,600 hours.
Daily extra production: 180 units/180 days = 1 unit more per day
Subcontracting cost = 150 um + (1 unit * 20 hours/unit * 16 um/hour) = 470 um/unit

Trimester 1:
Overtime = 1 unit * 20 hours/unit * 57 days = 1140 hours
Cost of overtime = 1140 * 20 units/hour = 22800 units
PNP trimestre 1= 620
Regular production = 10 units/day * 57 days = 570 units.
Extraordinary production = 1 day * 57 days = 57 units.
Total Producción = 570 + 57 = 627 uds.
Diferencia = 627 – 620 = 7 uds Inventory
Ownership costs = 7 units * 10 currency units / day * 57 days = 3990 currency units.

Quarter 2:
Overtime = 1 unit * 20 h/unit * 69 days = 1380 h
Overtime cost = 1380 * 20 um/h = 27600 um
PNP trimestre 2= 680
Regular production = 10 units/day * 69 days = 690 units.
Extraordinary production = 1 day * 69 days = 69 units.
Total Production = 690 + 69 = 759 units.
Difference = (759 + 7) - 680 = 86 units Inventory
Ownership costs = 86 units * 10 u.m./city and day * 69 days = 59340 um.

Quarter 3:
Overtime = 1 unit * 20 hours/unit * 54 days = 1080 hours
Overtime cost = 1080 * 20 units/h = 21600 units
PNP third quarter = 680 units.
Regular production = 10 units/day * 54 days = 540 units.
Extraordinary production = 1 day * 54 days = 54 units.
Total Producción = 540 + 54 = 594 uds.

15
Production Management THEME3:AggregatePlanning

Difference = (594 + 86) – 680 = 0 units.

Total cost of overtime hours = 711.330

Total cost of subcontracting.................................. 660600 um

Coste de Prod. Regular= 36.000h* 16 um/h= 576000 um

Outsourcing cost = 180 units * 470 currency units / unit = 84600 currency units

The table below shows part of the Aggregate Plan

Production of the product family produced by the company F.

January February March April May June

Productive days 20 20 F 20 22 21
PNP 700 E 1.450 1.450 1.500 1.550
Real template (adjusted number of employees) 9 12 12 14 12 12
Variation in the workforce 0 3 0 2 -2 0
Available hours in regular shifts C 1.920 2.112 2.240 2.112 2.016
Production during regular hours A 960 1.056 1.120 1.056 1.008
Regular hours worked B 1.920 2.112 2.240 2.112 2.016
Idle regular hours D 0 0 0 0 0
Production in extraordinary shifts 0 240 300 300 I 400
Subcontracted production 0 0 0 190 0 142
Final inventory 0 0 G H 0 0

The additional information you have is as follows:

The workday is 8 hours.

16
PRODUCTION MANAGEMENT TEMA3:PlanificaciónAgregada

Each unit of the family requires 2 man-hours for its manufacturing.

The cost per regular worked hour is 1,000 monetary units.
The cost per subcontracted unit is 800 monetary units more than it would cost.
produce it in a regular workday.

It is requested:

1. Complete the table.

2. The total cost of subcontracting for the semester.
3. The level of service achieved.
4. The number of workers if production were to be leveled.

SOLUTION:

1)
A: Production in regular shift = PNP = 700 units.
Regular hours worked = 700 units * 2 hours/unit = 1400 hours.
Available hours in regular shift = 9 workers * 8 h * 20 days = 1440
hrs.
Leisure hours = 1440 - 1400 = 40 hrs.
E: PNP = [Link] + [Link]. + [Link]. = 960 + 240 = 1200
you all.
Productive days:
Available hours j. regular = 12 workers * 8 h * number of days = 2112
Nºdías= 22 días
G: Inventario final= (1056 + 300 + 0) – 1450 = -94 unidades
Final inventory = (1120 + 300 + 190 - 94) - 1450 = 66 units
I: Extraordinary production day: 1500 - (1056 + 0 + 66) = 378 units

2)
Outsourcing cost = (190 + 142) * (800 units + 2 hours/unit * 2000 units/hour) =
= 332* 2800 = 929,600 um.

3) Service level = (7850 - 94) / 7850 = 0.988025 98.80%

4) Number of workers needed = 7850 * 2 / 8 * 125 = 15.7 workers 16

workers

17
PRODUCTION MANAGEMENT TOPIC4:MasterProgramming

PROBLEMS
A company has developed an Aggregate Production Plan for the family.
of F1 components, which is reflected in the following table:

Months January February March

Production in regular shift 12.000 12.000 12.000
Production during extraordinary hours 150 150
Outsourced production 200

Determine the Master Production Schedule for the months of February and
March.

The company has prepared a report in the last week of January.

P1 and P2 are the two products that make up what we call the family of
F1 products.

Of the total F1 demand, 60% corresponds to P1.

50% of the demand for both products is concentrated in the first week.
50% at the beginning of each month and the other 50% evenly over the remaining three weeks.

There are some scheduled receptions. One of 2,430 units of P1 that

will be completed in two weeks, and another of 2,500 units of P2 with the
what we will be able to tell next week.

P1 batches are scheduled every two weeks (T = 2; please note that with
The ongoing P1 batch is intended to meet the needs of the period.
in which it is received and those of the following), and those of P2 are constant batches of 2,500
units.

Throughout the month of January, the quantity produced of F1 has exceeded by 3,845.
units to the planned in the Aggregate Plan for that month, of which
3.645 units correspond to P1 and 200 units to P2.
Production Management TOPIC4:MasterProgramming

SOLUTION:

MASTER PRODUCTION PLAN

MONTH OF FEBRUARY MARCH
PAP with its own resources 12.150 12.150
Part of product P1 in PAP (60%) 7290 7290
WEEKS 5 6 7 8 9 10 11 12
GROSS NEEDS (NBi ) 3.645 1.215 1.215 1.215 3.645 1.215 1.215 1.215
EXCESS INVENTORY ON PAP (IEi ) 3.645 0 1.215 0 3.645 0 1.215 0
SCHEDULED RECEPTIONS (SRi ) 0 2.430 0 0 0
NET NEEDS (NNi ) 0 -1.215 0 1.215 0 1.215 0 1.215
PMP of product P1 (RRPLi ) 4.860 2.430
Part of product P2 in PAP (40%) 4.860
WEEKS 5 6 7 8 9 10 11 12
GROSS NEEDS (NB)i ) 2.430 810 810 810 2.430 810 810 810
EXCESS INVENTORY ON PAP (IEI ) 200 270 1.960 1.150 340 410 2.100 1.290
SCHEDULED RECEPTIONS (RPi ) 2.500 0
NET NEEDS (NN)i ) -270 540 -1.150 -340 2.090 400 -1.290 -480
PMP of product P2 (RRPL)i ) 2.500 2.500 2.500

2. Cervezaza, S.A. is a company that produces type A beer. Its demand

annual is estimated at 50,000 units (for an annual planning horizon of
50 weeks). The costs of changing machinery to start manufacturing a type
the cost of different beer is estimated at 400 euros and the cost of storage
The weekly unit cost is estimated at 10 cents per euro.

Se pide determinar la recepción de pedidos planificados (RRPL) según las

following lot sizing techniques: lot to lot, quantity
order economic, constant period (2) and POQ starting from the following
net needs for the next 8 weeks:

1 2 3 4 5 6 7 8
NET NEEDS (NN)i )1.500 1.000 800 1.300 600 1.500 900 1.000

SOLUTION:

MADE IN PPT.
PRODUCTION MANAGEMENT TOPIC4:MasterProgramming

D is a company dedicated to the manufacture of outdoor furniture and

camping and gardening accessories, which is currently scheduling its
production for the next two months (June and July). Among its products are
find the barbecue family (FB), composed of the following
products: P1, P2 and P3. Part of the approved Aggregate Production Plan is
show in the following table:

Months June July

Production during regular hours 6,900 7,500
Production in extraordinary shifts 600 900
Outsourced production 500 100

In addition, to schedule the production of the FB family, the company has

the following information:

You know that the product that is selling best of the three (that make up...
the FB family is the P3, so it is estimated that its demand is 45% of that of the
family, with the demand for P1 being 30% of the total and that for P2 being 25%.

Due to the characteristics of the products in the barbecue family,

their demand tends to concentrate, to a greater extent, in the first week of
each month, in which 40% of the total monthly sales are normally sold, while
that in the other three weeks their demand remains the same.

Currently, there are some scheduled receptions, one for P1 of 500 units.
which will arrive in the second week of June, another one from P2 of 1,400
units and another of P3 of 600 units that are to arrive in the first week
of the month of June.

In May, 2,200 additional barbecues have been made, 950 are from P1, 100 from P2 and
1.150 of P3.

The techniques used to plan the batches to be manufactured are as follows:

batch by batch with multiples of 500 units for P1, fixed period (T=3 weeks)
for P2 and, for P3, lot by lot with multiples of 600 units.

With all this information, determine the Master Production Schedule for
P1, P2, and P3 corresponding to the months of June and July.

Note: If when operating you get a non-integer number, round it by default if the
The first decimal is less than five and by excess otherwise.
PRODUCTION MANAGEMENT TOPIC4:MasterProgramming

4. A company manufactures, among other things, product P1. Its manufacturing route is
represented below:

As can be appreciated, for each unit of P1 to be manufactured, 2 are required.

units of component C1 and 2 units of material M1, the latter of
external acquisition. Likewise, the preparation of each unit of C1 requires
one unit of material M2.

The following tables contain additional information related to the operations.

carry out and to the workplaces where they take place. Specifically, the
loading times (tci, in actual hours) and the utilization factor (Ai) of the
operations, and the Utilization (U) and Efficiency (E) factors of the centers of
work.
PRODUCTION MANAGEMENT THEME4:MasterProgramming

O1 O2 O3 O4 O5 CT1 CT2 CT3 CT4

Tci (hr) 0.50 0.80 0.25 0.60 0.35 Utilization (U) 0.90 0.95 0.93 0.90
Ai 0,90 0,90 0,90 0,95 0,90 Eficiencia ( E) 0.95 0.85 0.90 0.80

It is requested to prepare the capacity list of P1 to determine the load, in hours.

standards, which generates in each workplace the manufacturing of a unit
of said product.

Note: Use only two decimals in your calculations and, if necessary, adjust for
excess or deficit to the nearest value.

SOLUTION:

Calculation of units to be processed:

n uap i 1 n uap i 1
uap i
Ai 1 d i

Uap 3 = 1 ud/0.90 = 1.11 uds

Uap2 = 1.11 / 0.90 = 1.23 units.

Uap 1 = 1.23 / 0.90 = 1.37 units (M1 needed 2 * 1.37 = 3.24 units.)
Uap5 = 1.23 * 2 / 0.90 = 2.73 units

Uap4= 2,73/ 0,95= 2,87 uds. ( M2: necesario 1*2,87= 2,87 uds.)

Calculation of the unit loading times for the operations:

tci(h.e.) = tci(h.p.) x E = tci(h.r.) x U x E

tc1=0,50 *0,90*0,95= 0,36 h.e. (CT4)

tc2=0,80 *0,93*0,90= 0,67 h.e. (CT3)

tc3=0.25 * 0.90 * 0.95 = 0.21 h.e. (CT1)

tc4=0.60 *0.95*0.85= 0.48 h.e. (CT2)

tc5=0,35 *0,90*0,95= 0,29 h.e. (CT3)

Production Management THEME4:MasterProgramming

Calculation of the loading time of an item in a work center:

Tctcjk uap ijk i
i

TcT ct1= tc3*uap3= 0.21 h.e/ud * 1.11 uds = 0.23 he

Tct ct2 = tc4 * uap4 = 0.48 h.e/ud * 2.87 uds = 1.38 h.e

TcTct3 = tc2 * uap2 + tc5 * uap5 = 0.67 h.e/ud * 1.23 uds + 0.29 h.e/ud * 2.73 uds =
= 0.82 + 0.79 = 1.61 h.e.

TcTct4= tc1*uap1= 0.49 h.e.

Capacity list:

5. A company manufactures the product RPH, whose bill of materials is as follows:

Components P and Z are manufactured by the company itself, while the

the rest of the components (C1, C2, and C3) are acquired from abroad. For
manufacture the necessary components and carry out the assembly of the final product
the company has to carry out 8 operations (O1, O2,..., O8). These are executed in
three work centers (CT1, CT2, and CT3) according to the manufacturing routes
that are shown below.
PRODUCTION MANAGEMENT TOPIC4:MasterScheduling

The following tables contain information regarding the operations to be performed.

and the workplaces where they take place:

O1 O2 O3 O4 O5 O6 O7 O8 CT1 CT2 CT3

Tpi ( hr) 0,15 0,10 0,09 0,12 0,20 0,25 0,50 0,40 Usage (U) 0,85 0,90 0,85
Tei ( hr) 0,17 0,48 0,51 0,32 0,65 0,30 0,48 0,25 Efficiency (E) ["0.80","0.90","0.95"]

Ai 0,95 0,80 0,90 0,85 0,75 0,95 0,75 0,90

The company's workforce consists of 153 employees. It breaks down into

40 trabajadores en el CT1, 25 trabajadores en el CT2 y 88 en el CT3.

The workday is 8 actual hours a day with 5 working days per week.

Prepare the capacity list of HR to determine the load, in hours.

standards, which generate in each workplace the manufacturing of a unit
of said product.

Does the company have sufficient capacity to meet production?

programmed in the PMP?

The master production program has determined that 900 must be manufactured.
units in week 2, 450 units in week 5 and 900 units in the
week 7.

SOLUTION:

Calculation of units to be processed:

n uap i 1 n uap I 1
uap i
Ai 1 d I

Uap 3 = 1 unit / 0.90 = 1.11 units

Uap2 = 1.11 / 0.80 = 1.39 units.

Uap1 = 1.39 / 0.95 = 1.46 units. It will be necessary 1.46 units of Z and 2 * 1.46 = 2.92 units.
of P

Uap6= 1.46/0.95= 1.54 units

Uap5= 1.54/ 0.75= 2.05 units.

Uap4 = 2.05 / 0.85 = 2.41 units. 4.82 units of C3 will be needed.

PRODUCTION MANAGEMENT THEME4:MasterProgramming

Uap8 = 2 * 1.46 / 0.90 = 3.24 units.

Uap7 = 3.24 / 0.75 = 4.32 units. 2 * 4.32 = 8.64 units of C1 and 4.32 units.
of C2

Calculation of loading times for operations in standard hours:

tci(h.e.) = tci(h.p.) x E = tci(h.r.) x U x E

tc1=(0.15 + 0.17) * 0.85 * 0.80 = 0.22 h.e. (CT1)

tc2= (0,10+0,48) *0,90*0,90= 0,47 h.e. (CT2)

tc3=(0,09+ 0,51) *0,85*0,80= 0,41 h.e. (CT1)

tc4=(0,12+ 0,32) *0,85*0,95= 0,36 h.e. (CT3)

tc5=(0.20+0.65)*0.85*0.80=0.58 h.e. (CT1)

tc6=(0.25+0.30) *0.85*0.95= 0.44 h.e. (CT3)

tc7=(0.50+0.48) *0.90*0.90= 0.79 h.e. (CT2)

tc8= (0,40+0,25) *0,85*0,95= 0,52 h.e. (CT3)

Calculation of the loading time of an item in a work center:

TTc jk tc ijk uap i
i

TTc R1= tc1*uap1 + tc3*uap3+ tc5*uap5 = 0.22*1.46 + 0.41*1.11+ 0.58*2.05=

0.32 + 0.46 + 1.19 = 1.97

(operations 01, 03 and 05)

TTc R2 = tc2 * uap2 + tc7 * uap7 = 0.47 * 1.39 + 0.79 * 4.32 = 0.65 + 3.41 = 4.06 h.e

(operations 02 and 07)

TTc R3 = tc4* uap4 + tc6*uap6 + tc8*uap8 = 0.36*2.41 + 0.44*1.54 + 0.52*3.24 =

0.87 + 0.68 + 1.68 = 3.23 h.e.

(operations 04, 06 and 08)

Therefore:

CT1 CT2 CT3

Total unit loading time (h.e) 1.97 4.06 3.23

PRODUCTION MANAGEMENT TOPIC4:MasterProgramming

Available capacity:

CT1: CD1= 40 workers * 8hr * 5 days/week = 1,600 h.r

CD1 h.e= 1.600 * 0.85 * 0.80 = 1.088 h.e.

CT2: CD2= 25 workers * 8hr * 5 days/week = 1,000 h.r

CD2 h.e.= 1.000 * 0.90 * 0.90 = 810 h.e.

CT3: CD3= 88 workers * 8 hr * 5 days/week = 3,520 hr.

CD3 h.e.= 3520 * 0.85 * 0.95 = 2842.4 h.e.

Necessary Capacity:

CN1 = 900 * 1.97 = 1,773 h.e

CN2 = 900 * 4.06 = 3654 h.e

CN3= 900 * 3.23 = 2.907 h.e.

Deviations (DA):

CT1: DA= CD1- CN1= 1.088 – 1773 = - 685 h.e. Overloaded center.

CT2: DA= CD2- CN2= 810 - 3654= - 2.844 h.e. Center overloaded.

CT3:DA= CD3-CN3= 2842.4 – 2907 h.e.= -65 h.e. Overloaded center

WEEK 5: PMP= 450 units.

CN1= 450 * 1,97 = 886,5 h.e

CN2= 450 * 4.06 = 1,827 h.e

CN3= 450 * 3.23 = 1453.5 h.e.

Deviations:

CT1: CD1- CN1= 1088 - 886.5 = 202 h.e.

CT2: CD2- CN2= 810- 1827= -1017 h.e.

CT3: CD3-CN3= 2842,4 – 1453,5 h.e= 1. 389 h.e.

 PRODUCTION MANAGEMENT TOPIC4:MasterProgramming

Accumulated deviations:

APPROXIMATE CAPACITY PLAN

WEEKS 1 2 3 4 5 6 7 8
PMP RR 900 450 900
AVAILABLE CAPACITY (AC) 1.088 1.088 1.088
LOAD RR (CN RR) 1.773 886.5 1.773
CT1 APPROXIMATE LOAD PLAN (ALP) 1.773 886.5 1.773
DEVIATION (CD-PAC) -685 202 -685
CUMULATIVE DEVIATION -685 -484 -1.169
AVAILABLE CAPACITY (AC) 810 810 810
LOAD RR (CN RR) 3.654 1.827 3.654
CT2 APPROXIMATE LOAD PLAN (ALP) 3.654 1.827 3.654
DEVIATION (CD-PAC) -2.844 -1.017 -2.844
CUMULATIVE DEVIATION -2.844 -3.861 -6.705
AVAILABLE CAPACITY (AC) 2.842,40 2,842.40 2,842.40
LOAD RR (CN RR) 2,907.00 1,453.5 2,907.00
CT3 APPROXIMATE LOAD PLAN (PAC) 2.907,00 1,453.5 2,907.00
DEVIATION (CD-PAC) -65 1.389 -65
Cumulative Deviation -65.0 1,323.9 1,259.3
Production Management TOPIC5:ComponentProgramming

PROBLEMS

The operations director of Bicicletas, S.A., a bicycle manufacturer,

Competition is deciding on the implementation of an MRP software in the company.
for the planning of your inventories. To verify the usefulness of it
software, the functioning of it is analyzed for planning the
Blade 2000 model. As inputs to the computer system, it starts from the
manufacturing structure of the bicycle, the master production plan and the
Inventory status that is collected below.

Level of Stock of Supply time/

Article inventory security manufacturing (weeks)
Blade 2000 150 - 2
A 50 - 3
B 300 50 1
C 200 50 2
D 75 - 1
E 100 75 1
F 5.000 400 1
G 100 - 1

Inventory status

Finally, it should be noted that the Master Production Program reflects

para el modelo Blade 2000 unas necesidades brutas de 600 unidades para la
week 7 and 500 units for week 8. It is assumed that they do not exist
committed quantities, that the orders are made batch by batch and how
There is only a scheduled reception of 100 seats (B) for week 4.

With the available information, it is requested to carry out the planning of needs.
for all the components of the Blade 2000 product.

1
Production Management TOPIC5:ComponentProgramming

2. Based on the data shown in the figure and in the tables that are
attach, determine the planned order launches of the
components A, B, and C of the company ZZ.

P1 P2

A 1 B 1

C 1 D 2 E 2 C 2 E 3

Week 1 2 3 4 5 6 7 8
LPPLi(P1) 50 100 150 180 200 150 100 0
LPPLi(P2) 0 0 360 450 100 0 75 220

Week 1 2 3 45 6 7 8
Demanda Externa (C) 150 150 150

Percentage Receptions Techniques of

Code I0 SS TS
Defective Scheduled Dimensioned
A 70 20 1 RP2 = 130 Batch by batch
B 180 50 1 10% RP3 = 140 Fixed period, T = 2
C 300 140 2 RP2= 300 Quantity constant,
1.087 units

3.A company produces product P1 in which, among others, are used

components, two units of C11, which is manufactured by the company from
two components purchased from suppliers. For obtaining each unit
From C11, a unit of C21 and two units of C22 are required. The component
C11 is also used in the manufacture of another final product, P2, at a rate of
one unit of C11 for each unit of P2.

The following tables record, respectively, part of the master segment of

inventory record file and the receipt of two planned orders from
the final items for the next eight weeks.

2
PRODUCTION MANAGEMENT TOPIC5:ComponentProgramming

Factor of Receptions Techniques of

Code I0 SS TS
Scheduled exploitation sized
P1 110 100 1 1 Batch by batch
P2 125 125 2 1 Batch by batch
Lot by lot, with
C11 0 20 1 1 RP1= 1.000
multiple of 500
C21 20 20 1 1 Batch by batch
Lot by lot, with
C22 1.000 0 1 1 RP1= 1.000 multiple of
2,000

Week 1 2 3 4 5 6 7 8
RPPLi (P1) 200 240 220 200 220 180
RPPLi (P2) 320 700 200 400 240

It is requested:

1. Calculate the gross needs of C11.

2. Carry out the order scheduling for C11.
3. In addition to the demand generated by its parent, C22 has the demand
independent that appears in the table below. Carry out the programming of
orders for said component.

Week 1 2 3 4 5 6 7 8
External Demand (C22) 0 700 400 800 300 0 1.200 800

4. The production planning for product P1 has the following

list of materials:

P1

C3 2
C1 1
C2 3

S1 2 S2 1 S2 2 S1 3

3
 PRODUCTION MANAGEMENT TOPIC5:ComponentProgramming

The explosion of materials has already begun to develop and is known.

planned orders for P1 and the components C1 and C3, which are collected in the
next table.

Week 1 2 3 4 5 6 7 8
LPPLi (P1) 400 200 1.000 200 600
LPPLi (C1) 500 400 800 200 800
LPPLi (C3) 1,000 500 400 500 1.000

The S1 component is also sold as a spare part and its demand

external for the eight weeks appears in the following table:

Week 1 2 3 4 5 6 7 8
External Demand (S1) 500 400 500 600

For the other party, the information from the log file is available.
inventories provided below:

Factor of Receptions Techniques of

Code I0 SS TS
Scheduled Utilization sized
Batch by batch, with
C2 200 50 1 multiples of 300
udes.
Batch by batch, with
S1 1.800 200 1 RP14.000
minimum of 1,000
fixed term,
S2 500 100 1 5% RP1= 2.000
T = 3 weeks

With this information, complete the needs breakdown by determining the

orders to request for components C2, S1, and S2.

Note: if decimals appear while operating, round up to the nearest whole number.

4
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control at very c/ p

PROBLEMS
1. The company PPP needs to assign five orders (P1) for next week.
P2, P3, P4 and P5) to their three workplaces (CT1, CT2 and CT3), for which is going to
use the load graph method. Based on the data that is
shown in the following table and taking into account that they cannot be divided
the orders:

1. What would the assignment be if the criterion used is the search for a
minimum cost?
2. What if the goal were the minimum time?

Indicate the final cost of both alternatives.

CT1 CT2 CT3

Orders Ct Tt Ct Tt Ct Tt
P1 80 37.5 144 60 170 75
P2 208 75 130 60 156 112.5
P3 70 40.5 77 45 140 81
P4 68 30 150 10 157 20
P5 73 20 170 15 161 18
Capacity
["80 hours/week","70 hours/week","60 hours/week"]
available

Nota: Ct: Coste total en euros; Tt: Tiempo total en horas estándares, h.e.

SOLUTION:

CT1 CT2 CT3

Orders Ct Tt Ct Tt Ct Tt
P1 80 37.5 144 60 170 75
P2 208 75 130 60 156 112.5
P3 70 40.5 77 45 140 81
P4 68 30 150 10 157 20
P5 73 20 170 15 161 18
Capacity
["80 hours/week","70 hours/week","60 hours/week"]
available

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PRODUCTION MANAGEMENT TOPIC 6: Planning and Control very c/ p

Total cost of this assignment:

CT = 80 + 130 + 70 + 68 + 73 = 421 €

Overload in CT1.

Reassignment of an order to another work center: 8 possible movements.

2
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control

New chart:

Second reassignment:

Coste total : CT= 80 + 130 + 70 + 150 + 161 = 591 €

3
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control at a very c/ p

What if my goal were the minimum time?

CT1 CT2 CT3

Orders Ct Tt Ct Tt Ct Tt
P1 80 37.5 144 60 170 75
P2 208 75 130 60 156 112.5
P3 70 40.5 77 45 140 81
P4 68 30 150 10 157 20
P5 73 20 170 15 161 18
Capacity
["80 hours/week","70 hours/week","60 hours/week"]
available

Situation:

The total time would be: TT = 37.5 + 60 + 40.5 + 10 + 15 = 163 h.e.

Time and costs:

4
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control with very c/p

1st Reassignment:

Load chart:

Final assignment:

Total time for this assignment: TT = 37.5 + 60 + 40.5 + 10 + 18 = 166 h.e.

Since the final allocation is the same in both sections, the total cost and the
total time is the same for both criteria ( CT= 591 um; Tt= 166 h.e.)

The company CCC is using the load chart technique for the
monthly assignment of your orders. You have to assign five orders to three
work centers for what has been compiled in the table shown above
continuation with the total cost (Ct, in €) and the total time (Tt, in h.e.) that
I would assume to place each order at each work center. In the last row of the
The monthly available capacity of each can also be observed.
work center.

5
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control very c/ p

CT1 CT2 CT3

Orders Ct Tt Ct Tt Ct Tt
P1 100 70 150 80 175 60
P2 250 80 400 65 275 90
P3 280 60 220 50 350 75
P4 150 90 125 90 140 60
P5 140 45 90 65 120 50
Capacity
120 h.e./mensual 180 h.e./mensual 120 h.e./mensual
available

Taking into account that orders cannot be split:

1. What would the assignment be if the criterion used is the search for a
minimum cost?
What if the goal was the minimum time?

Indicate the final cost of both alternatives and the total time of them.
assignments.

SOLUTION:

1. What would the assignment be if the criterion is the search for a

minimum cost?

CT1 CT2 CT3

Orders Ct Tt Ct Tt Ct Tt
P1 100 70 150 80 175 60
P2 250 80 400 65 275 90
P3 280 60 220 50 350 75
P4 150 90 125 90 140 60
P5 140 45 90 65 120 50
Capacity
120 h.e./mensual 180 h.e./mensual 120 h.e./mensual
available

6
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control at very c/ p

Total cost of this assignment: TC = 100 + 250 + 220 + 125 + 90 = 785 €

First reassignment:

Second reassignment:

7
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control very c/ p

Orders will be placed in the following work centers:

The cost will be: CT= 175 +250 + 220 + 140 + 90 = 875 €

This allocation incurs a cost of 90 € higher than the initial allocation.

2. What if the goal was minimum time?

CT1 CT2 CT3

Orders Ct Tt Ct Tt Ct Tt
P1 100 70 150 80 175 60
P2 250 80 400 65 275 90
P3 280 60 220 50 350 75
P4 150 90 125 90 140 60
P5 140 45 90 65 120 50
Capacity
120 h.e./mensual 180 h.e./mensual 120 h.e./mensual
available

8
 PRODUCTION MANAGEMENT TOPIC 6: Planning and Control at very c/ p

The time would be: TT = 60 + 65 + 50 + 60 + 45 = 280 hours.

Final solutions:

3. Solve problem 1 using the index method.

1. What would the assignment be if the criterion is the search for a

minimum cost?
2. What if my goal was the minimum time?

Indicate the final cost of both alternatives.

SOLUTION:

CT1 CT2 CT3

Pi Ct Ict Tt It Ct Ict Tt ITt Ct Ict Tt ITt
P1 80 0 37.5 0 144 0.8 60 0.6 170 1,125 75 1
P2 208 0.6 75 0.25 130 0 60 0 156 0.2 112,5 0,875
P3 70 0 40.5 0 77 0.1 45 0.111 140 1 81 1
P4 68 0 30 0.67 150 10 0 157 20
P5 73 0 20 170 15 0 161 18
Cap 80 h.e./week 70 h.e./week 60 h.e./week
a-
cida
d
Disp
oni-
ble

4. Solve problem 2 using the index method.

9
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control very c/p

1. What would the assignment be if the criterion used is the search for a
minimum cost?
2. What if I aimed for the minimum time?

Indicate the final cost of both alternatives.

5. In the assembly section of a metalworking company, it is desired to assign five

workers Oi , (i = 1,...,5), to send different tasks Tj , (j = 1,...,5), so that
each of them attends to a single task and vice versa; it is intended that the costs
totals for such assignment be minimal.

The following table reflects the costs cijprovoked by the assignment of a

determined Oito a certain Tj .

Tasks
T 1T 2T 3T 4T 5
O 14 3 2 7 5
O 210 4 6 10 7
Operators O310 3 10 10 4
O 411 5 11 13 8
O 58 3 5 9 1

Use the Kuhn Assignment Algorithm.

A copy shop has five managers for next week.

photocopying jobs that must be done in the shortest time possible. You have
five machines suitable for carrying out those jobs. The times in hours
expressive of the different combinations for each job and machine are
that appear in the following table:

Photocopiers
F 1F 2F 3F 4F 5
T 112 16 10 6 12
T 28 12 16 8 16
Jobs T310 26 16 20 22
T 44 8 8 M 14
T 56 M 6 M 10

The optimal assignment of tasks is desired to minimize time.

total.

7. Given the following data of the company, it is desired to sequence the different
orders in the various Work Centers according to the following rules of
priority:

Longest Operation (LO)

10
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control at a very c/p

2. Shortest Operation (SO)

Longest Job (LJ).
4. Shorter Work (TMC).
5. Least Remaining Time (LRT).
6. Lower Critical Ratio (LCR).
7. Earliest Delivery Date (EDD).
8. Minimum Slack Time (MST).
9. Minimum Slack Time per Remaining Operation (MTHOR).

It is also known that the process is at the end of day 36 of the planning.
that the daily available capacity of the three CTs used is 8.16 h.e.
in the CT1, 6.5 h.e. in the CT2 and 5.45 h.e. in the CT3.

Number of Item Quantity Emisión: Entrega: Order status

order Final day Final day
1530 P2 113 30 40 Processing the O6 in
CT3 - 4 hours left.
1531 112 357 30 45 In line waiting at the
CT2 for the O8
1532 P1 186 35 45 In the waiting line at the
CT3 for the O1
1533 P2 113 35 45 In line at the
CT3 for the O4
1534 121 264 35 45 In line waiting at the
CT2 for O10
1535 112 135 35 50 Processing the O7 in
the CT1 - 10 remain
H.E.

Item P1 P2 112 112 112 121

Batch size to be issued 186 113 135 222 357 264
Batch size to be obtained 170 100 113 186 299 226
Corresponding orders 1532 1533 1535 1531 1534
1530
First operation 1 4 7 7 7 10
Work center CT3 CT3 CT1 CT1 CT1 CT2
Charge for preparation 1 1 1 1 1 1
Execution load for the batch 15.5 9.42 11.25 18.5 29.5 8.8
Second operation 2 5 8 8 8 11
Work center CT2 CT2 CT2 CT2 CT2 CT1
Preparation charge 1 1 1 1 1 1
Execution load for the batch 2.94 4.47 10,12 16,65 26,77 4,68
Third operation 3 6 9 9 9
Work center CT3 CT3 CT1 CT1 CT1
Charge for preparation 1 1 1 1 1

11
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control

Execution load for the batch 4.32 0.85 8,64 14,21 22,85

SOLUTION:

TRANSPARENCIES

At the end of day 5 of the planning, the company has finished manufacturing in
CT3 the order that was in progress and currently has four orders in queue.
the wait to be processed at that workplace. The information about
the preparation and execution times in CT3 of each of the orders, thus
as the delivery date of the same is detailed in the following table:

Pedidos Tiempo de preparación Tiempo de ejecución Fecha de entrega del

(h.e.) (h.e.) order
P1 0.75 90 Final day 60
P2 1.5 60 Final day 34
P3 0.5 85.5 Final day 45
P4 0.5 110.5 Final day 36

Due to their manufacturing routes, it is also known that once processed the
different requests in CT3, and to be completely finished, they will have to
pass through the workplaces shown in the table below, in which
It also collects the time required for each order:

Following operations
Order by route P1 P2 P3 P4
2 CT1 (90 h.e.) CT2 (30 h.e.) CT1 (50 h.e.) CT4 (120 h.e.)
3 CT4 (45 h.e.) CT2 (60 h.e.)

The number of standard hours per workday is 10 in the centers of

work CT1 and CT2 and 15 in CT3 and CT4.

With this information, it is requested to sequence the different orders in CT3 according to
the following rules of priority:

Longest Operation (LO)

2. Shortest Operation (SO).
3. Longer Work (TML).
4. Shorter Work (TMC).
5. Earliest Delivery Date (EDD).
6. Minimum Slack Time (MST).

12
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control

SOLUTION:

OML:

Order of the requests in CT3: P4 - P1 - P3 - P2.

2. OMC: Order of the orders in CT3: P2 - P3 - P1 - P4.

3. TML:

Orden de los pedidos: P3 – P4 – P1 – P2.

4. TMC:
Orden de los pedidos: P2 – P1 – P4 – P3.

5. MFE:

Order of orders: P2 – P4 – P3 – P1.

13
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control at a very high level

6. MTH:

Order of the orders: P4 – P3 – P2 – P1.

In a workshop, five specific jobs must be processed through two

work centers. The time to process each job is shown on
continuation:

Work CT1 CT2

A 5 2
B 3 6
C 8 4
D 10 7
E 7 12

Using Johnson's rule, find the optimal sequence for processing the
different jobs.

10. In a workshop, six specific jobs must be processed through two

work centers. The time to process each job is shown at
continuation:

Work CT1 CT2

A 6 12
B 3 7
C 18 9
D 15 14
E 16 8
F 10 15

14
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control at a very c/ p

Using Johnson's rule, find the optimal sequence for processing the
different jobs.

SOLUTION:
A B C D E F

CT1 6 3 18 15 16 10
CT2 12 7 9 14 8 15

A B C D E F
CT1 6 3 18 15 16 10
CT2 12 7 9 14 8 15

Sequence: B -

A B C D E F
CT1 6 18 15 16 10
CT2 12 9 14 8 15

Sequence: B - A

A B C D E F
CT1 18 15 16 10
CT2 9 14 8 15

Sequence: B - A - X - X - X - E

A B C D E F
CT1 18 15 10
CT2 9 14 15

Secuencia: B – A - X – X- C-E

A B C D E F
CT1 15 10
CT2 14 15

Secuencia: B – A – F- X – C - E

Secuencia: B – A – F - D – C - E

15
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control very c/ p

11. The company WWW, dedicated to the manufacturing of high machinery

technology, has received an order for 100 units of its star product. In the face of
the importance of the order, is requested by management the preparation of
a Gantt chart to accurately determine the detailed scheduling of
the operations and the time required to complete the order (in hours).

The activities necessary to develop the product are:

Cortado (O1): the cutter needed for this operation requires
of a preparation that takes 1 hour. Each piece needs 30
minutes to be processed.
Turning (O2): As pieces are finished in the activity
previously it is possible to process them on the lathe (completely independent of
the cutter), which carries out this second operation. This machine requires
30 minutes to adjust, trying to start the preparation as soon as possible.
Possible. Each unit is processed in 60 minutes.
Assembly (O3): The assembly of various is carried out below.
components, requiring 30 minutes per unit. It is not necessary
turn all the pieces of the batch to start the assembly.
Control (O4): This control phase is carried out by a specialized unit.
located on a floor of a nearby city. It cannot be transported the
pedido fragmentado, al ser muy caro el traslado, por lo que se llevarán
the 100 pieces at once. It takes 1 hour for transportation to the other.
city and 15 minutes to check the condition of each piece.

With this information, a detailed schedule of operations is requested:

1. Assuming that the lot is transmitted complete from one operation to the
next (without overlaps between any of the activities). The
preparation of the activities can be done before the arrival of the
batch.
2. Overlapping all activities that allow it.

SOLUTION:

Data:

16
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control in very c/p

1. Assuming that the batch is transmitted complete from an operation to the

next (without overlaps between any of the activities). The preparation
The activities can be carried out before the lot arrives.

Cortado:
Start of preparation: fp1= 0 h.e.

End of preparation and beginning of execution:

Fp1 = f1 = fp1 + tp1 = 0 + 1 = 1 hence.

End of execution:
F1 = f1 + Te1 = 1 + 50 = 51 h.e.

Tornado:

Start of execution: f2= F1 =51 h.e.

Beginning of the preparation
fp2 = f2 - tp2 = 51 - 0.5 = 50.5 h.e.

End of execution
F2 = f2 + Te2 = 51 + 100 = 151 h.e.

Assembly:

Start of execution: f3= F2 = 151 h.e.

End of execution and beginning of transit:
F3 = ft3 = f3 + Te3 = 151 + 50 = 201 h.e.
End of transit:
Ft3 = ft3 + tt3,4 = 201 + 1 = 202 h.e.

Control:
Start of execution: f4 = Ft3 = 202 h.e.
End of execution:
F4= f4 +Te4 =202+ 25 = 227 h.e.

17
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control

Overlaying all activities that allow it.

Cortado:
Start of preparation: fp1= 0 h.e.

End of preparation and start of execution:

Fp1 = f1 = fp1 + tp1 = 0 + 1 = 1 h.e.

End of execution:
F1= f1 + Te1= 1+50 = 51 h.e.

Tornado:

Start of execution: f2 = f1 + te1 = 1 + 0.5 = 1.5 h.e.

Beginning of the preparation
fp2 = f2 - tp2 = 1.5 - 0.5 = 1 h.e.

End of execution
F2= f2 +Te2= 1.5 + 100 = 101.5 h.e.

Assembly:

End of execution and beginning of transit:

F3 = ft 3 = F2 + te3 = 101.5 + 0.5 = 102 h.e.
Start of execution:
f3 = F3 - Te3 = 102 - 50 = 52 h.e.

End of transit:
Ft3 = F3 + tt3,4 = 102 + 1 = 103 h.e.

Control:
Start of execution: f4 = Ft3 = 103 h.e.
End of execution:
F4= f4 + Te4 = 103 + 25 = 128 h.e.

18
GESTIÓN DELA PRODUCCIÓN TEMA 6:Planificación y Control a muy c/ p

12. The company KKK has an order of 200 rolls of silk fabric, which
requires 5 operations:

Operation 1 (O1): with a setup time of 2 hours and a time of

execution for each roll of 0.5 h.e.
Operation 2 (O2): no preparation is needed, with the execution time
for each roll of 1.5 h.e.
Operation 3 (O3): requires 1.5 man-hours for preparation and 1 man-hour for
execution.
Operation 4 (O4): does not require preparation and the execution time is
1.25 h.e.
Operation 5 (O5): needs 1 h.e. for the preparation and 0.5 h.e. for the
execution.

It should be noted that all operations are carried out in centers of

different jobs, except O3 and O5, which are performed on the same machine (by
thus, these two operations cannot be performed simultaneously.

With this information, a Gantt chart is requested to schedule each one.

of the operations overlapping whenever possible.

SOLUTION:

DATA:

19
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control

20
PRODUCTION MANAGEMENT TOPIC 6: Planning and Control at very c/p

21
 EXERCISE 1 TOPIC 5
Article Level Inv0 S.S. WEEKS 1 2 3 4 5 6 7 8
Bicycle 0 150 Gross needs (GN)i ) 0 0 0 0 0 0 600 500
Available (Di ) 150 150 150 150 150 150 150 0
Sizing T.S. A 0 Scheduled receptions (SR)I ) 0 0 0 0 0 0 0 0
Net needs (NN)i ) -150 -150 -150 -150 -150 -150 450 500
2 Planned Order Receipt (RPPL)i )
Planned Order Launch (LPPL)i ) 0 0 0 0 450 500 0 0
A (Handlebar) 1 50 Gross Needs (GN)i ) 0 0 0 0 450 500 0 0
Available (DI ) 50 50 50 50 50 0 0 0
Sizing T.S. A 0 Scheduled receptions (SRi ) 0 0 0 0 0 0 0 0
Net needs (NNi ) -50 -50 -50 -50 400 500 0 0
3 Planned order receipt (RPPLi )
Launch of planned orders (LPPLi ) 400 500 0 0 0 0 0
B (Saddle) 1 300 50 Gross needs (GNi ) 0 0 0 0 450 500 0 0
Available (Di ) 250 250 250 350 350 0 0 0
Sizing T.S. A Scheduled receptions (SRi ) 0 0 0 100 0 0 0 0
Net needs (NNi ) -250 -250 -250 -450 100 500 0 0
1 Planned Order Receipt (RPPL)i )
Planned Order Launch (LPPL)i ) 0 0 0 100 500 0 0 0
C( Wheels) 1 200 50 Gross needs (GN)i ) 0 0 0 0 900 1.000 0 0
Available (Di ) 150 150 150 150 150 0 0 0
Sizing T.S. A Scheduled receptions (SR)i ) 0 0 0 0 0 0 0 0
2 Net needs (NNi ) -150 -150 -150 -150 750 1.000 0 0
Planned Order Receipt (RPPL)i )
Planned Order Launch (LPPL)i ) 0 0 750 1.000 0 0 0 0
 D (Pedals) 1 75 0 Gross needs (GNI ) 0 0 0 0 900 1.000 0 0
Available (Di ) 75 75 75 75 75 0 0 0
Sizing T.S. A Scheduled receptions (SR)i ) 0 0 0 0 0 0 0 0
1 Net needs (NNI ) -75 -75 -75 -75 825 1,000 0 0
Planned order receipt (RPPLi )
Planned order launches (LPPL)i ) 0 0 0 825 1.000 0 0 0
E (tires) 2 100 75 Gross Needs (GNi ) 0 0 750 1,000 0 0 0 0
Available (Di ) 25 25 25 0 0 0 0 0
Sizing T.S. A Scheduled receptions (RPi ) 0 0 0 0 0 0 0 0
1 Net needs (NNi ) -25 -25 725 1,000 0 0 0 0
Planned order receipt (RPPLi )
Planned Order Launch (LPPL)i ) 0 725 1.000 0 0 0 0 0
F (Radios) 2 5000 400 Gross needs (GNi ) 0 0 18.750 25.000 0 0 0 0
Available (Di ) 4.600 4.600 4.600 0 0 0 0 0
Sizing T.S. A Scheduled receptions (SR)i ) 0 0 0 0 0 0 0 0
1 Net Needs (NN)i ) ‐4.600‐4.600 14.150 25.000 0 0 0 0
Planned Order Receipt (RPPL)i )
Planned Order Launch (LPPL)i ) 0 14.150 25.000 0 0 0 0 0
G (Brakes) 2 100 0 Gross Needs (GNi ) 0 0 750 1.000 0 0 0 0
Available (Di ) 100 100 100 0 0 0 0 0
Sizing T.S. A Recepciones programadas (RPi ) 0 0 0 0 0 0 0 0
1 Net needs (NNi ) -100 -100 650 1.000 0 0 0 0
Planned Order Receipt (RPPL)i )
Planned Orders Launch (LPPLi ) 0 650 1.000 0 0 0 0 0
 EXERCISE 2 TOPIC 5
Article Level Inv0 S.S. WEEKS 1 2 3 4 5 6 7 8
P1 0 Gross needs (GNI )
Available (Di )
Sizing T.S. A Scheduled receptions (SR)i )
Net needs (NN)i )
Planned order reception (RPPL)i )
Planned order launch (LPPL)i ) 50 100 150 180 200 150 100 0
P2 0 Gross needs (GN)i )
Available (Di )
Sizing T.S. A Scheduled receptions (SRi )
Net needs (NNi )
Planned Order Receipt (POR)i )
Planned order launch (LPPL)I ) 0 0 360 450 100 0 75 220
A 1 70 20 Gross needs (GNi ) 50 100 150 180 200 150 100 0
Available (Di ) 50 0 30 0 0 0 0 0
Sizing T.S. A Scheduled receptions (RPi ) 0 130 0 0 0 0 0 0
Batch by batch 1 100% Net needs (NN)i ) 0 -30 120 180 200 150 100 0
Planned order receipt (RPPL)i ) 0 0 120 180 200 150 100 0
Launch of planned orders (LPPL)i ) 0 120 180 200 150 100 0 0
 B 1 180 50 Gross needs (GNi ) 0 0 360 450 100 0 75 220
Available (Di ) 130 130 130 450 0 0 0 220
Sizing T.S. A Scheduled receptions (SRI ) 0 0 140 0 0 0 0 0
Fixed period T=2 1 90% Net needs (NN)I ) -130 -130 90 0 100 0 75 0
Planned Order Receipt (POR)i ) 540 100 295
Launch of planned orders (LPPL)i ) 600 111 328
C 2 300 140 Gross needs (GNi ) 150 120 900 1.100 500 100 300 440
Available (Di ) 160 10 190 377 364 951 851 551
T.S. Sizing A Scheduled receptions (SR)I ) 0 300 0 0 0 0 0 0
Constant quantity
1.087 units. 2 100% -10 -190 710 723 136-851-551-111
Net needs (NN)i )
Planned Order Receipt (POR)i ) 1.087 1.087 1.087 0 0 0
Planned order launch (LPPL)i ) 1.087 1.087 1.087 0 0 0 0 0
 EXERCISE 3 TOPIC 5

Article Level Inv0S.S. WEEKS 1 2 3 4 5 6 7 8

P1 0 110 100 Gross needs (GNi )
Available (Di )
Sizing T.S. A Scheduled receptions (SRi )
batch by batch 1 1 Net needs (NN)i )
Planned Order Receipt (POR)i ) 200 240 220 200 220 180 0
Planned order launch
(LPPLI ) 200 240 220 200 220 180 0 0
P2 0 125 125 Gross requirements (GR)i )
Available (DI )
Sizing T.S. A Scheduled receptions (SRi )
Batch by batch 2 1 Net needs (NNi )
Planned Order Receipt (RPPL)i ) 0 0 320 700 0 200 400 240
Planned Order Launch (LPPL)I ) 320 700 0 200 400 240 0 0
 C11 1 0 20 Gross Needs (NB)i ) 720 1.180 440 600 840 600 0 0
Available (Di ) -20 260 80 140 40 200 100 100
Sizing T.S. A Scheduled receptions (SR)I ) 1,000 0 0 0 0 0 0 0
Batch by batch, multiple 1 1 Net needs (NNi ) -260 920 360 460 800 400 -100 -100
of 500 Planned Order Receipt (POR)i ) 0 1.000 500 500 1o00 500 0 0
Launch of planned orders
(LPPLi ) 1.000 500 500 1.000 500 0 0 0
C22 2 1000 0 Gross Needs (GN)I ) 2.000 1.700 1.400 2.800 1.300 0 1.200 800
Available (DI ) 1.000 0 300 900 100 800 800 1.600
Sizing T.S. A Scheduled receptions (RPi ) 1.000 0 0 0 0 0 0 0
Lot by lot, multiple 1 1 Net needs (NNi ) 0 1.700 1.100 1.900 1.200 ‐800 400 -800
from 2000 Planned order reception (RPPL)I ) 2.000 2.000 2.000 2.000 0 2,000 0
Launch of planned orders
(LPPLi ) 2.000 2.000 2.000 2.000 0 2.000 0

Week 1 2 3 4 5 6 7 8
External demand C22 0 700 400 800 300 0 1200 800
 EXERCISE 4 TOPIC 5
Article Level Inv0 S.S. WEEKS 1 2 3 4 5 6 7 8
P1 0 Gross needs (GNI )
Available (DI )
Sizing T.S. A Scheduled receptions (SR)i )
Net needs (NNi )
Planned Order Receipt (POR)i )
Planned order launch
(LPPLi ) 400 200 1.000 0 200 0 600
C1 1 Gross needs (GN)i )
Available (Di )
Sizing T.S. A Scheduled receptions (SRi )
Net needs (NN)i )
Planned order reception (RPPL)i )
Launch of planned orders
(LPPLi ) 500 400 800 0 200 0 800 0
C2 1 200 50 Gross needs (NB)I ) 0 1.200 600 3.000 0 600 0 1.800
Available (Di ) 150 150 150 150 150 150 150 150
Sizing T.S. A Scheduled receptions (RPi ) 0 0 0 0 0 0 0 0
Batch by batch, multiple of 1 1 Net needs (NNi ) ‐150 1.050 450 2.850‐150 450‐150 1.650
300 units. 0 1,200 600 3,000 0 600 0 1.800
Planned Order Receipt (POR)i )
Launch of planned orders
(LPPLi ) 1,200 600 3,000 0 600 0 1.800
C3 1 Gross needs (GNI )
Available (Di )
Sizing T.S. A Scheduled receptions (RPi )
Net needs (NNi )
Planned order reception (RPPL)i )
 Launch of planned orders
(LPPLi ) 1.000 500 400 500 1.000
S1 2 1800 200Gross needs (GNi ) 5400 3200 7200 400 3200 600 6600 0
AvailableI ) 1600 200 0 0 600 0 400 0
Sizing T.S. A Scheduled receptions (SRi ) 4000 0 0 0 0 0 0 0
Lot by lot, with 1 1 Net needs (NN)i ) ‐200 3000 7200 400 2600 600 6200 0
minimum of 1,000
uds Planned Order Reception (PORD)i ) 0 3000 7200 1000 2600 1000 6200 0
Launch of planned orders
(LPPLI ) 3000 7200 1000 2600 1000 6200 0
S2 2 500 100 Gross needs (GNi ) 2.200 1.400 4.600 0 1.000 0 3.400 0
Available (Di ) 400 200 4.600 0 0 3.400 3.400 0
Sizing T.S. A Scheduled receptions (RPi ) 2,000 0 0 0 0 0 0 0
Fixed period 1 95% Net needs (NN)I ) -200 1.200 0 0 1.000-3.400 0 0
T=3 weeks 0 5.800 0 4,400 0 0
Planned order reception (POR)i )
Lanzamiento pedidos planificados
(LPPLi ) 6.105 4.632 0 0

WEEK 1 2 3 4 5 6 7 8
EXTERNAL DEMAND S1 500 400 500 600