Other considerations

1) tax structure, cess, octroi, toll tax

2) favourable labour climate
3) near to markets
4) worker is not alone so availability of housing, markets, shops, schools, recreational activity area

epz
sez
activity area
 Weighted Score method for the three sites
Factor Rating Method / Weighted Score Method
Importance Scores Sites
Criteria Weighting A (Ras Al Khaimah) B(Sharjah)
Cost of the Site 4 40 45
Local Tax 2 50 50
Skills Availability 1 70 70
Access to
MotorWays 1 70 70

Access to Airport 1 80 65
Potential for
Expansion 1 30 50
Total Weighted Scores 510 535
Since Dubai has the highest weighted score, it is the preferred site
es
C(Dubai)
70
30
60

60

45

70
575
Coca Cola Warehouse Location

70

60

50

40

30

20

10

(0,0) 10 20 30 40 50 60 70 80 90

Cx = X coordinate of centroid
Cy = Y coordinate of centroid
dix = X coordinate of the ith loc
diy = Y coordinate of the ith loca
Vi = volume of goods moved to
the ith location
 Location Coordinates
x y Volume
Abu Dhabi 60 35 150000
Dubai 70 45 200000
Sharjah +Ajman 80 50 100000
Umm+RasK+Fuj 90 55 75000
525000 Total
Coordinates of CG x
y

100
 
dinate of centroid
dinate of centroid
dinate of the ith location
dinate of the ith location
of goods moved to or from
on
Coca Cola Warehouse Location

70

60

50

40

30

20

10

(0,0) 10 20 30 40 50 60 70 80 90
 Location Coordinates
x y Volume
Abu Dhabi 60 35 150000
Dubai 70 45 200000
Sharjah +Ajman 80 50 100000
Umm+RasK+Fuj 90 55 75000
525000 Total
Coordinates of CG x 37750000 71.904762
y 23375000 44.52381

100
PRODUCTION RATE @
(CAPACITY FXD @10000 APPX) J F M A M J J

what are short term changes in capacity that you will make to be able to meet demand
1) stable workforce variable work hours (using overtime and shift change)
2) chase strategy (hiring or firing/layoff of temporary workers)
3) Level strategy (using inventory to meet demand)
4) Outsourcing or sub-contracting
 A S O N D

e able to meet demand pure strategy

ertime and shift change)
rary workers) mixed strategy

60 machines
40 people
 MIXED STRATEGY FALL WINTER SPRING SUMMER DETAILS
FORECAST 10000 8000 7000 12000 OVERTIME MAX.
BEGINNING INV. 500 -2300 0 200 WORKERS =
PRODUCTION REQD. 9500 10300 7000 11800 PRODUCTIVITY =
HOURS =
PROD.HRS REQD. 19000 20600 14000 23600 NO. OF DAYS =
BEGINNING INV. =
DAYS 60 60 60 60
WORKERS WORKING 30 30 30 30 COSTS
BACKORDERING =
PROD.HRS AVAILABLE 14400 14400 14400 14400 OVERTIME =
HIRING =
OVERTIME 6200 FIRING (LAYOFF)=
HIRING 20 INV. HOLDING =
FIRING 20 STRAIGHT TIME =
CALCULTION FOR HIRI
ACTUAL PROD.HRS 14400 20600 14400 24000 PROD. HRS AVB
ACTUAL PRODUCTION 7200 10300 7200 12000 PROD. HRS REQUI
NET WORKERS WORKING 30 30 30 50 EXCESS/DEFICIT H
ENDING INVENTORY -2300 0 200 200 HIRING =
COSTS FIRING =
BACKORDERING 23000 Facts
1) Hiring and Firing only
OVERTIME 49600 2) Overtime in winter or s
3) Demand must be met
HIRING 2000 4) No overtime in Fall

FIRING 4000

INV. HOLDING 1000 1000

REGULAR COST 72000 72000 72000 120000

TOTAL 95000 121600 73000 127000 GRAND TOTAL = 416600

OVERTIME MAX.
WORKERS = 30
PRODUCTIVITY = 0.5 UNITS PER HR 1 UNIT IN 2 HOURS
HOURS = 8
NO. OF DAYS = 60 PER QUARTER
BEGINNING INV. = 500

BACKORDERING = 10 PER UNIT

OVERTIME = 8 PER HOUR
100 PER WORKER
FIRING (LAYOFF)= 200 PER WORKER
INV. HOLDING = 5 PER UNIT PER MONTH
STRAIGHT TIME = 5 PER HOUR
CALCULTION FOR HIRING/FIRING WORKERS
PROD. HRS AVB 14400
PROD. HRS REQUI 23600
EXCESS/DEFICIT H 9200
19.16667 20
19.16667 20

1) Hiring and Firing only in summer

2) Overtime in winter or spring
3) Demand must be met in winter and spring
4) No overtime in Fall
 OVERTIME STRATEGY FALL WINTER SPRING SUMMER DETAILS
FORECAST 10000 8000 7000 12000 OVERTIME MAX.
BEGINNING INV. 500 0 0 0 WORKERS =
PRODUCTION REQD. 9500 8000 7000 12000 PRODUCTIVITY =
HOURS =
PROD.HRS REQD. 19000 16000 14000 24000 NO. OF DAYS =
BEGINNING INV. =
DAYS 60 60 60 60
WORKERS WORKING 30 30 30 30 COSTS
BACKORDERING =
PROD.HRS AVAILABLE 14400 14400 14400 14400 OVERTIME =
HIRING =
OVERTIME 4600 1600 0 9600 FIRING (LAYOFF)=
HIRING INV. HOLDING =
FIRING STRAIGHT TIME =

ACTUAL PROD.HRS 19000 16000 14000 24000

ACTUAL PRODUCTION 9500 8000 7000 12000
NET WORKERS WORKING 30 30 30 30
ENDING INVENTORY 0 0 0 0
COSTS
BACKORDERING

OVERTIME 36800 12800 0 76800

HIRING

FIRING

INV. HOLDING

REGULAR COST 72000 72000 72000 72000

TOTAL 108800 84800 72000 148800 GRAND TOTAL = 414400

OVERTIME MAX.
WORKERS = 30
PRODUCTIVITY = 0.5 UNITS PER HR 1 UNIT IN 2 HOURS
HOURS = 8
NO. OF DAYS = 60 PER QUARTER
BEGINNING INV. = 500

BACKORDERING = 10 PER UNIT

OVERTIME = 8 PER HOUR
100 PER WORKER
FIRING (LAYOFF)= 200 PER WORKER
INV. HOLDING = 5 PER UNIT PER MONTH
STRAIGHT TIME = 5 PER HOUR
 CHASE STRATEGY FALL WINTER SPRING SUMMER DETAILS
FORECAST 10000 8000 7000 12000 OVERTIME MAX.
BEGINNING INV. 500 0 0 0 WORKERS =
PRODUCTION REQD. 9500 8000 7000 12000 PRODUCTIVITY =
HOURS =
PROD.HRS REQD. 19000 16000 14000 24000 NO. OF DAYS =
BEGINNING INV. =
DAYS 60 60 60 60
WORKERS WORKING 30 40 34 30 COSTS
BACKORDERING =
PROD.HRS AVAILABLE 14400 19200 16320 14400 OVERTIME =
HIRING =
OVERTIME FIRING (LAYOFF)=
HIRING 10 20 INV. HOLDING =
FIRING 6 4 20 STRAIGHT TIME =
CALCULTION FOR HIRI
ACTUAL PROD.HRS 19000 16000 14000 24000
ACTUAL PRODUCTION 9500 8000 7000 12000 PROD. HRS AVB
NET WORKERS WORKING 40 34 30 50 PROD. HRS REQUIRED
ENDING INVENTORY 0 0 0 0 EXCESS/DEFICIT HRS
COSTS HIRING =
BACKORDERING FIRING =
HIRING (ROUNDUP) =
OVERTIME FIRING (ROUNDDOWN
** NOTE:- WE WILL ALL
HIRING 1000 0 0 2000

FIRING 1200 800 4000

INV. HOLDING

REGULAR COST 96000 81600 72000 120000

TOTAL 97000 82800 72800 126000 GRAND TOTAL = 378600

OVERTIME MAX.
WORKERS = 30
PRODUCTIVITY = 0.5 UNITS PER HR 1 UNIT IN 2 HOURS
HOURS = 8
NO. OF DAYS = 60 PER QUARTER
BEGINNING INV. = 500

BACKORDERING = 10 PER UNIT

OVERTIME = 8 PER HOUR
100 PER WORKER
FIRING (LAYOFF)= 200 PER WORKER
INV. HOLDING = 5 PER UNIT PER MONTH
STRAIGHT TIME = 5 PER HOUR
CALCULTION FOR HIRING/FIRING WORKERS
FALL WINTER SPRING SUMMER
PROD. HRS AVB 14400 19200 16320 14400
PROD. HRS REQUIRED 19000 16000 14000 24000
EXCESS/DEFICIT HRS 4600 -3200 -2320 9600
9.583333 20
6.66666666666667 4.833333 20
HIRING (ROUNDUP) = 10 20
FIRING (ROUNDDOWN)= 6 4 20
** NOTE:- WE WILL ALLOW WORKERS TO WORK LESS SO THAT THERE IS NO ENDING INVENTORY
INVENTORY
LEVEL STRATEGY (WITH BACKORDERING) FALL WINTER SPRING SUMMER
FORECAST 10000 8000 7000 12000
BEGINNING INV. 500
NET DEMAND 9500
CUMMULATIVE DEMAND 9500 17500 24500 36500
DAYS 60 60 60 60
CUMMULATIVE DAYS 60 120 180 240
[email protected] PER DAY
TOTAL PRODUCTION 9125 18250 27375 36500
ENDING INVENTORY -375 750 2875 0
NO. OF WORKERS WORKING 39 39 39 39
COSTS
BACKORDERING 3750
OVERTIME
HIRING
FIRING
INV. HOLDING 3750 14375 0
REGULAR COST 93600 93600 93600 93600

TOTAL 97350 97350 107975 93600 GRAND TOTAL =

 DETAILS
CUMMULATIVE DEMAND OVERTIME MAX.
40000 WORKERS =
PRODUCTIVITY =
35000
HOURS =
30000 NO. OF DAYS =
25000 BEGINNING INV. =
20000
COSTS
15000
BACKORDERING =
10000 OVERTIME =
5000 HIRING =
0
FIRING (LAYOFF)=
0 50 100 150 200 250 300 INV. HOLDING =
STRAIGHT TIME =
CUMMULATIVE DAYS 0 60 120
CUMMULATIVE DEMAND 0 9500 17500

SLOPE OF LINE (GREEN LINE) 152.0833 THIS IS THE PRODUCTION REQD PER DAY
GRAND TOTAL = 396275 HOURS REQUIRED PER DAY 304.1667 (ONE UNIT IN TWO HOURS)
WORKERS REQUIRED PER DAY 38.02083 39
OVERTIME MAX.
WORKERS = 30
PRODUCTIVITY = 0.5 UNITS PE 1 UNIT IN 2 HOURS
HOURS = 8
NO. OF DAYS = 60 PER QUARTER
BEGINNING INV. = 500

BACKORDERING = 10 PER UNIT

OVERTIME = 8 PER HOUR
100 PER WORKER
FIRING (LAYOFF)= 200 PER WORKER
INV. HOLDING = 5 PER UNIT PER MONTH
STRAIGHT TIME = 5 PER HOUR
180 240
24500 36500

HE PRODUCTION REQD PER DAY

T IN TWO HOURS)
LEVEL STRATEGY (WITHOUT BACKORDERING) FALL WINTER SPRING SUMMER
FORECAST 10000 8000 7000 12000
BEGINNING INV. 500
NET DEMAND 9500
CUMMULATIVE DEMAND 9500 17500 24500 36500
DAYS 60 60 60 60
CUMMULATIVE DAYS 60 120 180 240
[email protected] PER DAY
TOTAL PRODUCTION 9500 19000 28500 38000
ENDING INVENTORY 0 1500 4000 0
NO. OF WORKERS WORKING 40 40 40 40
COSTS
BACKORDERING 0
OVERTIME
HIRING
FIRING
INV. HOLDING 7500 20000 0
REGULAR COST 96000 96000 96000 96000

TOTAL 96000 103500 116000 96000 GRAND TOTAL =

 DETAILS
CUMMULATIVE DEMAND OVERTIME MAX.
40000 WORKERS =
PRODUCTIVITY =
35000
HOURS =
30000 NO. OF DAYS =
25000 BEGINNING INV. =
20000
COSTS
15000
BACKORDERING =
10000 OVERTIME =
5000 HIRING =
0
FIRING (LAYOFF)=
0 50 100 150 200 250 300 INV. HOLDING =
STRAIGHT TIME =
CUMMULATIVE DAYS 0 60 120
CUMMULATIVE DEMAND 0 9500 17500

SLOPE OF LINE (RED LINE) 158.3333 THIS IS THE PRODUCTION REQD PER DAY
GRAND TOTAL = 411500 HOURS REQUIRED PER DAY 316.6667 (ONE UNIT IN TWO HOURS)
WORKERS REQUIRED PER DAY 39.58333 40
OVERTIME MAX.
WORKERS = 30
PRODUCTIVITY = 0.5 UNITS PE 1 UNIT IN 2 HOURS
HOURS = 8
NO. OF DAYS = 60 PER QUARTER
BEGINNING INV. = 500

BACKORDERING = 10 PER UNIT

OVERTIME = 8 PER HOUR
100 PER WORKER
FIRING (LAYOFF)= 200 PER WORKER
INV. HOLDING = 5 PER UNIT PER MONTH
STRAIGHT TIME = 5 PER HOUR
180 240
24500 36500

HE PRODUCTION REQD PER DAY

T IN TWO HOURS)
STRATEGY COST
MIXED 416600
OVERTIME 414400
CHASE (HIRING FIRING) 378600
LEVEL (WITH BACKORDERING) 396275
LEVEL (WITHOUT BACKORDERING) 411500
 WEEKLY
1 2 3 4 5 6 7 8 9

SOMASRI BODY 200

SMRITI CHASIS 200

SHALINI PISTON RINGSHIVANGI ENGINE ACC SHUBHANI ENGINE 200

800 200

SHUBHAM TYRES
1000
LEVEL 3 LEVEL2 LEVEL 1
 10 11 12

ALTO
SUMIT CAR 200

NI ENGINE 200

LEVEL 0
CAR
ALTO
 weeks
1 2 3 4 5 6 7 8 9

riddhi 200 body

priya 200 chasis 3wk begin 6

kajal Megha Engine Accessories Nishtha 200 engines

800 200

Muskaan Tyres 3 weeks

1000

level 3 level 2 Level 1

 10 11 12

Ronak 200 begin 9th wk

level 0
car
Alto