LEVEL PRODUCTION STRATEGY

Student’s Name:

Institution:

LEVEL PRODUCTION STRATEGY

We are going to find the requirements for the entire period of the plan and also produce the average amount that is needed per month in order to meet the plan.

First we are going to determine the total average requirements per month:

Avg. requirements = total number of requirements – opening inv. + closing inv.

Periods

Avg. requirements, therefore = (9000 – 700 + 100)/6 = 1400 units/period

Steps:

1. Entering the production data
2. We will then determine the hire/fire rate to get to production level that is desired
3. All  inventory levels will then be updated
4. We will also check whether  the inventory is going to run out – If it does recalculate average production needed and go to step 1
5. Calculate totals for each category
6. Calculate costs

Period

1

2

3

4

5

6

Total

LEVEL STRATEGY

Costs:

1. Regular production costs:
2. Inventory carrying costs:
3. Hiring Costs:

TOTAL Incurred COSTS: _________

The aggregate planning that we are going to carry out will among other things attempt to match the level of bike supply to demand. It is going to determine the required quantities and the timing of inputs as well as outputs. There will also be making decisions on production, inventory, staffing and backorder levels.

The following are the forecasts for demand to meet:

Mo.............