A fabric mill has developed the following forecasts (in hundred bolts of cloth). The mill has a

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A fabric mill has developed the following forecasts (in hundred bolts of cloth). The mill has a normal capacity of 275 units (a unit=hundred bolts) per month, and employs 275 workers. Regular labour cost is $2,000 per unit and overtime labour cost is $3,000 per unit. Up to 50 units per month can be made during overtime. The beginning inventory is zero. Hiring cost is $1,000 per worker and layoff cost is $500 per worker. The inventory holding cost is $1 >000 per unit per month, and backorder cost is $5,000 per unit per month.
a. Develop a level output/workforce plan.
b. Starting with your answer to part a, use the trade-off analysis to find the minimum cost aggregate production plan.

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Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

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