Arizona State University MGT Incs Aggregate Demand Requirements Excel Task – Description
Complete the Excel, “Chap 13 MGTInc-DATA” . Be sure to make your responses obvious to the reviewer, and organize your submission so that it is easy to follow.
Hints for this problem:
This problem has 500 in beginning inventory that needs to be accounted for in the production.
The Chase production will reduce the first period production (January) by this beginning inventory amount. But, ONLY the January production for your Chase plan. DO NOT subtract the beginning inventory from the production of the subsequent months (February, March, etc.).
For the Level plan, the beginning inventory needs to be taken from the total demanded for the plan before dividing the demand over the time periods. See the Sophisticated Skates example for level production amount, or the equation for calculating the level production amount on the Aggregate Planning (ch 13) handouts.
Ending inventory needs to be calculated using available inventory and NOT the ending inventory column. The ending inventory calculation, for some of the months of the plan, is negative, but it should really be zero that is used in our calculations. Thus, having both an available inventory and ending inventory columns is helpful. The negative inventory impacts the lost sale calculation so again, both columns are needed.
Check answers (Aggregate Planning is a challenging concept and hard problems. To help you with the problems, the check digits are):
Total cost of a chase plan: $954,000
Total cost of a level plan: $819,000
The post Arizona State University MGT Incs Aggregate Demand Requirements Excel Task first appeared on .
