MGMT614 Assignment 1 Fall 2021 – Assignments – Solution VU

MGMT614 Assignment 1 Fall 2021 – Assignments – Solution VU

Total marks: 10
Due date: 9th February, 2021


To help students understand how Aggregate Planning works in Supply Chain Management.


“Innovative Craftsmen” is a state of the art electronics manufacturing company which specializes in manufacturing LED TVs and LCD TVs. The majority of the raw materials used for both types of TVs are almost same with a small difference in the final assembly components. Since the raw materials are same, the company wishes to plan the production at the product family level instead of the SKU level. For this purpose, the company has decided to employ Aggregate Planning Strategy. The company operates 20 days a month with an 8 hours shift daily. It takes 30 minutes for a worker to completely assemble a LED/LCD TV. The worker is paid Rs.100 per hour. It costs Rs.5000 to hire a worker if needed and Rs.7000 to fire a worker. The inventory carrying cost is Rs.50 per unit per month. Any unmet demand is backlogged and fulfilled from the production of the following period/month. The cost of backlogging is Rs.100 per unit per month. The material cost is Rs.500/unit. The company has an initial inventory of 1000 units and an initial workforce of 15 people. The forecasted demand for six months is given as follows:

January February March April May June
8000 9000 11000 9000 8000 10000


Being the supply chain manager of the company, your task is to decide whether a “Chase” or “Level” Strategy of Aggregate planning will be beneficial for the company based on the total costs.


In this assignment, you have to calculate: the material cost, the number of units to be produced per month in each strategy, workers required in each strategy, regular production cost, inventory and backlogs and  their respective costs (where applicable), workers hired/fired and respective cost (where applicable) and any other costs or parameters that are deemed necessary for the calculation of total cost in the form of the given table (Add or delete rows as per requirement).

Month January February March April May June
Demand 8000 9000 11000 9000 8000 9000

NOTE: The above table shows the format in which the assignment has to be submitted.
 This is a calculation based assignment.
 NO theoretical explanations are needed.
 Avoid unnecessary information.

 Be CONCISE and PRECISE. Irrelevant information will result in deduction of marks.
 Watch video lectures and consult book/notes to complete the assignment

24 hours extra / grace period after the due date are usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

 Make sure to upload the solution file before the due date on VULMS.
 Any submission made via email after the due date will not be accepted.

Formatting Guidelines:
 Use the font style “Times New Roman” or “Arial” and font size “12”.
 It is advised to compose your document in MS-Word format.
 You may also compose your assignment in Open Office format.
 Use black and blue font colors only.

Referencing Guidelines:
 Use APA style for referencing and citation. For guidance search “APA reference style” in Google and read various websites containing information for better understanding or visit

Rules for Marking
Please note that your assignment will not be graded or graded as Zero (0), if:
 Any of the given instructions is not followed.
 It is copied or plagiarized.
 It is submitted after the due date.
 The file you uploaded does not open or is corrupt.

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