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INTRODUCTION:
This case is taken from the section Aggregate Planning and Master Scheduling. The method used
to tackle this case is through spreadsheet
Question # 1:
SENARIO 1:
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SENARIO 2:
This arrangement joins all out expenses from stock holding costs, extra time at 10
tank load for every month and subcontracting. Subcontracting has zero expenses on
the grounds that there are no any amounts created by contractual workers.
Absolute expense for this blend is $4680000. In this arrangement level generation
has not be considered.
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SENARIO 3:
This arrangement consolidates after some time expense of 15 tank load for each month and stock
beds. This arrangement has not considered level creation costs. Absolute expense for this
arrangement is $4660000.
From the investigation, plan 1 which consolidates extra minutes of 10 tank load for each month
and the level creation of 60 tank load for every month in taking care of the demand. Contrasted
and the other two procedures, Plan 1 has an expense of $450000. Arrangement 2 has an
aggregate expense of $630000 and arrangement 3 has an aggregate expense of $4660000.
Conclusion:
As Scenario 3 is the lowest in cost this is chosen
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Answer 2:
Reason to notify supply chain partners
For smooth supply of crude materials and additionally completed products to the clients
Due to change sought after extra creation is required for which extra crude materials
would be required
To proficiently oversee stock and cost identified with it
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