Aggregate Planning at Green Mills
Problem Diagnosis
Green Mills Inc., which operates and owns many lumber mills in Northwestern United States, is currently considering expanding its operations to Chile in order to reduce the total costs associates with raw material procurement. Therefore, the management of the company wants to analyze the cost implications for the backward vertical integration through the analysis of the range of the aggregate production planning strategies including the chase, level and mixed production planning strategies.
Analysis
Question 1: Workforce & Production Schedule
The schedules for the workforce and the demand have been produced separately for the Chase, Level and the mixed strategy as shown in the separate excel spreadsheets. For the chase plan, two worker schedules have been created, one with overtime and the other without overtime. Similar is the case with the level plan and it is constant for the mixed plan. The calculations could be referred from the excel spreadsheet.
Question 2: Cost Comparison for three plans
The cost comparisons for the three plans are shown in the summary table below and based upon the total minimum costs, the most recommended option for the management is to go for the Level strategy..........................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
Principles of Pricing
Samsung Electronics
Denise Frazer and Paolo Canto: Case Vignette on Feedback – Paolo Cantos Perspective
Rosemary Brooks
Toyland Rubber Manufacturing: Building a New Factory in Shanghai
Royal Bank of Scotland: Masters of Integration
Progistix Solutions Inc – The Critical Parts Network
ECONOMICS ASSIGNMENT
Southwest airline in Nigeria
Singapore Airlines
