OM_05

Case: KT Beverage Inc. Aggregate Planning

Scenario 1: Mixed Strategy in which certain levels of workers are used to produce the demand along with hiring and firing options. MonthForecast (units)Production daysCumulative Forecast (Units)Production per workerCumulative production per worker (Units)Worker required (cumulative)Number of worker usedProduction by worker at Regular time (units)Cumulative Production (units)Ending Inventory (Units)HiringFiring

13,196,000263,196,000130,000130,00025344,420,0004,420,0001,224,000

23,833,000247,029,000120,000250,00029344,080,0008,500,0001,471,00000

34,437,0002611,466,000130,000380,00031354,550,00013,050,0001,584,00010

44,853,0002016,319,000100,000480,00034353,500,00016,550,000231,00000

54,619,0002620,938,000130,000610,00035354,550,00021,100,000162,00000

64,656,0002625,594,000130,000740,00035354,550,00025,650,00056,00000

74,527,0002630,121,000130,000870,00035354,550,00030,200,00079,00000

84,223,0002634,344,000130,0001,000,00035324,160,00034,360,00016,00003

94,016,0002638,360,000130,0001,130,00034314,030,00038,390,00030,00001

103,581,0002641,941,000130,0001,260,00034283,640,00042,030,00089,00003

113,256,0002645,197,000130,0001,390,00033253,250,00045,280,00083,00003

122,997,0002448,194,000120,0001,510,00032253,000,00048,280,00086,00000

Scenario 1: CostMonthSalaryHiringFiringInventory costTotal

1272,00000122,400394,400

2272,00000147,100419,100

3280,00030,0000158,400468,400

4280,0000023,100303,100

5280,0000016,200296,200

6280,000005,600285,600

7280,000007,900287,900

8256,0000150,0001,600407,600

9248,000050,0003,000301,000

10224,0000150,0008,900382,900

11200,0000150,0008,300358,300

12200,000008,600208,600

4,113,100

Scenario 2: Mixed Strategy in which certain levels of workers are used to produce the demand along with hiring and firing options.

MonthForecast (units)Production daysCumulative Forecast (Units)Production per workerCumulative production per worker (Units)Worker required (cumulative)Number of worker usedProduction by worker at Regular time (units)Cumulative Production (units)Ending Inventory (Units)HiringFiring

13,196,000263,196,000130,000130,00025334,290,0004,290,0001,094,000

23,833,000247,029,000120,000250,00029354,200,0008,490,0001,461,00020

34,437,0002611,466,000130,000380,00031354,550,00013,040,0001,574,00000

44,853,0002016,319,000100,000480,00034353,500,00016,540,000221,00000

54,619,0002620,938,000130,000610,00035354,550,00021,090,000152,00000

64,656,0002625,594,000130,000740,00035354,550,00025,640,00046,00000

74,527,0002630,121,000130,000870,00035354,550,00030,190,00069,00000

84,223,0002634,344,000130,0001,000,00035324,160,00034,350,0006,00003

94,016,0002638,360,000130,0001,130,00034314,030,00038,380,00020,00001

103,581,0002641,941,000130,0001,260,00034283,640,00042,020,00079,00003

113,256,0002645,197,000130,0001,390,00033253,250,00045,270,00073,00003

122,997,0002448,194,000120,0001,510,00032253,000,00048,270,00076,00000

Scenario 2: Cost

MonthSalaryHiringFiringInventory costTotal

1264,00000109,400373,400

2280,00060,0000146,100486,100

3280,00000157,400437,400

4280,0000022,100302,100

5280,0000015,200295,200

6280,000004,600284,600

7280,000006,900286,900

8256,0000150,000600406,600

9248,000050,0002,000300,000

10224,0000150,0007,900381,900

11200,0000150,0007,300357,300

12200,000007,600207,600

4,119,100

Scenario 3: Mixed Strategy in which certain levels of workers are used to produce the demand along with hiring and firing options.MonthForecast (units)Production daysCumulative Forecast (Units)Production per workerCumulative production per worker (Units)Worker required (cumulative)Number of worker usedProduction by worker at Regular time (units)Cumulative Production (units)Ending Inventory (Units)HiringFiring

13,196,000263,196,000130,000130,00025334,290,0004,290,0001,094,000

23,833,000247,029,000120,000250,00029354,200,0008,490,0001,461,00020

34,437,0002611,466,000130,000380,00031354,550,00013,040,0001,574,00000

44,853,0002016,319,000100,000480,00034353,500,00016,540,000221,00000

54,619,0002620,938,000130,000610,00035354,550,00021,090,000152,00000

64,656,0002625,594,000130,000740,00035354,550,00025,640,00046,00000

74,527,0002630,121,000130,000870,00035354,550,00030,190,00069,00000

84,223,0002634,344,000130,0001,000,00035334,290,00034,480,000136,00002

94,016,0002638,360,000130,0001,130,00034303,900,00038,380,00020,00003

103,581,0002641,941,000130,0001,260,00034283,640,00042,020,00079,00002

113,256,0002645,197,000130,0001,390,00033253,250,00045,270,00073,00003

122,997,0002448,194,000120,0001,510,00032253,000,00048,270,00076,00000

Scenario 3: Cost

MonthSalaryHiringFiringInventory costTotal

1264,00000109,400373,400

2280,00060,0000146,100486,100

3280,00000157,400437,400

4280,0000022,100302,100

5280,0000015,200295,200

6280,000004,600284,600

7280,000006,900286,900

8264,0000100,00013,600377,600

9240,0000150,0002,000392,000

10224,0000100,0007,900331,900

11200,0000150,0007,300357,300

12200,000007,600207,600

4,132,100

Scenario 4: Mixed Strategy in which certain levels of workers are used to produce the demand along with hiring and firing options.MonthForecast (units)Production daysCumulative Forecast (Units)Production per workerCumulative production per worker (Units)Worker required (cumulative)Number of worker usedProduction by worker at Regular time (units)Cumulative Production (units)Ending Inventory (Units)HiringFiring

13,196,000263,196,000130,000130,00025344,420,0004,420,0001,224,000

23,833,000247,029,000120,000250,00029344,080,0008,500,0001,471,00000

34,437,0002611,466,000130,000380,00031354,550,00013,050,0001,584,00010

44,853,0002016,319,000100,000480,00034353,500,00016,550,000231,00000

54,619,0002620,938,000130,000610,00035354,550,00021,100,000162,00000

64,656,0002625,594,000130,000740,00035354,550,00025,650,00056,00000

74,527,0002630,121,000130,000870,00035354,550,00030,200,00079,00000

84,223,0002634,344,000130,0001,000,00035334,290,00034,490,000146,00002

94,016,0002638,360,000130,0001,130,00034303,900,00038,390,00030,00003

103,581,0002641,941,000130,0001,260,00034283,640,00042,030,00089,00002

113,256,0002645,197,000130,0001,390,00033253,250,00045,280,00083,00003

122,997,0002448,194,000120,0001,510,00032253,000,00048,280,00086,00000

Scenario 4: Cost

MonthSalaryHiringFiringInventory cost

1272,00000122,400394,400

2272,00000147,100419,100

3280,00030,0000158,400468,400

4280,0000023,100303,100

5280,0000016,200296,200

6280,000005,600285,600

7280,000007,900287,900

8264,0000100,00014,600378,600

9240,0000150,0003,000393,000

10224,0000100,0008,900332,900

11200,0000150,0008,300358,300

12200,000008,600208,600

4,126,100

Scenario 5: Mixed Strategy in which certain levels of workers are used to produce the demand along with outsourcing options.MonthForecast (units)Production daysCumulative Forecast (Units)Production per workerCumulative production per worker (Units)Worker required (cumulative)Number of worker usedProduction by worker at Regular time (units)Cumulative Production (units)Ending Inventory (Units)Shortage (Units)

13,196,000263,196,000130,000130,00025324,160,0004,160,000964,0000

23,833,000247,029,000120,000250,00029323,840,0008,000,000971,0000

34,437,0002611,466,000130,000380,00031324,160,00012,160,000694,0000

44,853,0002016,319,000100,000480,00034323,200,00015,360,0000959,000

54,619,0002620,938,000130,000610,00035324,160,00019,520,00001,418,000

64,656,0002625,594,000130,000740,00035324,160,00023,680,00001,914,000

74,527,0002630,121,000130,000870,00035324,160,00027,840,00002,281,000

84,223,0002634,344,000130,0001,000,00035324,160,00032,000,00002,344,000

94,016,0002638,360,000130,0001,130,00034324,160,00036,160,00002,200,000

103,581,0002641,941,000130,0001,260,00034324,160,00040,320,00001,621,000

113,256,0002645,197,000130,0001,390,00033324,160,00044,480,0000717,000

122,997,0002448,194,000120,0001,510,00032323,840,00048,320,000126,0000

Scenario 5: CostMonthSalaryShortage costInventory costTotal

1256,000096,400352,400

2256,000097,100353,100

3256,000069,400325,400

4256,000239,7500495,750

5256,000354,5000610,500

6256,000478,5000734,500

7256,000570,2500826,250

8256,000586,0000842,000

9256,000550,0000806,000

10256,000405,2500661,250

11256,000179,2500435,250

12256,000012,600268,600

6,711,000

Cost Comparison:

ScenarioMixed Strategy withTotal Cost

Scenario 1Hiring & Firing4,113,100A better Plan

Scenario 2Hiring & Firing4,119,100



Scenario 5Outsourcing6,711,000

Cost Comparison:

ScenarioMixed Strategy withTotal Cost

Scenario 1Hiring & Firing4,113,100A better Plan




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OM_05