Aggregate Planning Practice Problems

Question 1: Use the transportation method to develop an initial aggregate plan, given
the following data:
Period
1
2
3
Demand
130
160
140
Costs
Capacity
Regular time
$10
Regular
100
100
100
Overtime
$15
Overtime
20
20
20
Subcontracting
$20
Subcontracting 30
30
30
Carrying costs
$2
Backorder
$5
Question2: Prepare a master schedule based on the following information
Week
1
2
3
4
5
6
7
8
Forecast
100
100
120
120
150
150
180
180
Committed 106
94
65
40
21
9
2
0
Orders
Beginning inventory is 145 units
Schedule production whenever projected-on-hand drops below 20.
Production lot size is 250 units.
Note: Concerning trial and error problems, check the following problems in your book:
Inside the chapter Problems 1, 2 and 3
The solved problems at the end of the chapter
End of chapter problems 1, 5 and 6
MRP Practice Problems
Here are the parts list and lead time for product TT.
Component/Subassembly
Number Required
Product TT
Subassembly A
2
Component B
1
Subassembly A
Component B
3
Component C
1
Component D
2

Lead time
1 week
2 weeks
2 weeks
1 week
1 week

The master schedule for product TT is:

Week Number
Quantity

1
0

2
0

3
0

4
25

5
50

6
75

a) Construct the product-structure tree of product TT.

b) Determine the quantity of each subassembly and component that will be required.
c) Prepare a material requirements plan for each subassembly and component.