PLANH5R01: Flynn Commercial Freezer Ltd. (FCF Ltd), makes commercial and industrial freezers (the kind hotels: Supply Chain Planning & Control Assignment, UCC, Ireland
| University | University College Cork (UCC) |
| Subject | PLANH5R01 Supply Chain Planning & Control Assignment |
Q3. Sales & Operational Planning
Flynn Commercial Freezer Ltd. (FCF Ltd), makes commercial and industrial freezers (the kind hotels and restaurants use, and has the aggregate demand requirements for the next six months as given in the table below as are the costs and other necessary data. The firm has regular capacity for 480 units, and overtime capacity for 40 more. Currently, subcontracting can supply up to 100 units per month and this is unlikely to change in the near future.
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FCF Ltd is considering one of the following three aggregate plans:
Plan A is to produce level quantity, incurring back orders and inventory charges, Plan B is to produce a base quantity of 480, using first, overtime, then subcontracting, to meet demand and Plan C, a chase plan, using overtime and then subcontracting if regular capacity is insufficient to cover monthly demand.
The company wishes to minimise costs.
Note: there is no need to start and end on the same output level.
FCF Ltd has asked you to recommend one of the plans. Prepare each of the plans, calculate the costs associated with each plan and make a recommendation.
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