Excelsior Clay Works, a fictional manufacturer of a variety of high-quality glazed clay roof tiles in Kerala, India, has the following composite demand forecasts (in hundreds of units):

Additional Planning Data

Hiring cost: $400 per worker hired.

Firing cost: $200 per worker fired.

Regular time cost: $100 per worker per day.

Overtime cost: $150 per worker per day.

Idle time cost: $60 per worker per day.

Inventory carrying cost: $10 per hundred units/month

Backorder cost: $20 per hundred units (based on shortages at the end of the month).

Productivity rate: 100 units per worker per day.

Workforce size at the beginning of January: 20 workers.

Beginning inventory at the beginning of January: 0 units.

Develop a sales and operations plan using the following three strategies and find the total cost of each of the strategies:

1. A level strategy of constant workforce with inventories and backorders to meet demand variations.

2. A chase strategy with the options of hiring and firing workers.

3. A mixed strategy keeping the workforce size constant at 20 and by using overtime and idle time to absorb changes in demand.

Transcribed Image Text:

Month Jan Feb Mar Аpг May Jun Jul Aug Nov Dec Sep Oct Work daye 21 20 22 20 23 22 24 22 23 17 22 20 200 300 350 450 150 190 260 360 490 340 160 Forecast 600