Aggregate Planning At Green Mill Harvard Case Solution & Analysis

Aggregate Planning At Green Mill Case Solution

Determination of workforce and production schedule

The greenmail to determine a proper number of employees and prepare production schedule to meet with anticipated demand of the year. However, if we talk about the production capacity of the employees would be 50000 board feet per month per employee. It would cost $150 each production of the 1000 board feet.

On the other hand, the forest property has the total employees of 20. Those have production capacity of the 1,000,000 board feet per month. Meanwhile, the shipping capacity was also limited to the 1,500,000 board feet per month, and there was also gap between the production capacity, shipping capacity due to the limited number of employees.

Similarly, in order to get the proper production based on the anticipated demand in the market was important, but on another side, the reduction of the caring cost of inventory, and deficiency of the inventory was also major problem.But, by all efforts, reduction of the inventory cost was very important for the Green mills, that they were considering the backward integration to acquire raw material at low cost to be effective, and competitive in the market.

Meanwhile, in Level policy company would need to hire 13 extra employees to make workforce of the total 33 employees to meet the demand in the market monthly. Moreover, the in-chase policy, to meet the exact demand of the products in the market. The company would have to produce products as per demand. No additional production would take place at Chile production house. Hence the number of employees throughout the year would be hired to meet demand and fired when there is low demand. Thus, the overall strategy of the company would be to meet with demand period to period to avoid stockpile of the inventory.

Aggregate Planning At Green Mill Harvard Case Solution & Analysis



On the other hand, in mixed policy, the company would have a constant number of employees, and some of the employees would be giving overtime to meet the demand of the market at that time. Hence, the production of the raw material would be constant. But the cost of overtime would be expended by the company. Similarly, the increasing demand or declining demand would not have much impact on the company's efficiency. Because it would have workers available for overtime meet the demand. See Exhibit 1 in spreadsheet[1] for the determination of employees, and production capacity............

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