A Case Study: Line Production planning and control

To do any task you have to need a plan otherwise you can not fulfill your task. In our sector, we have calculated the order quantity and shipment day. We make a plan.

Example: 1st April 2012
                Order quantity = 30000 pcs
               To be shipped on 30 May 2012
 Therefore, day remaining = 26 days

Per day planned Target =30000/26
                                     =1154 pcs day
Hence, we calculate how many lines will be allocated to fulfill the target.

 Determine cost

To take an order you have the need to analyze the cost. The style will be profitable or lost.
Example:
                  Our per line day cost = 900$
                  Company + other cost =100$

Target earning = 1000 $
Day target = 1542 pcs
Buyer fixed per pcs = .50 $
     Per day = 1542*.50
                  =771 $ per day
So, it is not profitable. The company will not accept such an order.

 

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