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A factory making packs of snacks with apricots has estimated their sales over the next five years (Yr 1-Yr 5): 310, 120, 200, 110, 135.
A factory making packs of snacks with apricots has estimated their sales over the next five years (Yr 1-Yr 5): 310, 120, 200, 110, 135. The factory will have 20 packs on hand at the end of the current year. Assume each worker can produce K= 30 packs per year on average. No shortages are allowed, determine the zero inventory plan over the next five years, assuming that 10 workers are currently employed. (above pack numbers are in thousands) (a) Complete the table below. (15 pts) (b) The cost of hiring one worker is $500, firing one worker is $1,000, and the holding cost of 1,000 packs of snacks for one year is $50. Calculate the total cost of the plan in (a). (15 pts) (c) The ending inventories in (a) are not very close to zero. We can get closer to zero ending inventories if kis smaller / larger (choose one), explain why. (5 pts) A factory making packs of snacks with apricots has estimated their sales over the next five years (Yr 1-Yr 5): 310, 120, 200, 110, 135. The factory will have 20 packs on hand at the end of the current year. Assume each worker can produce K= 30 packs per year on average. No shortages are allowed, determine the zero inventory plan over the next five years, assuming that 10 workers are currently employed. (above pack numbers are in thousands) (a) Complete the table below. (15 pts) (b) The cost of hiring one worker is $500, firing one worker is $1,000, and the holding cost of 1,000 packs of snacks for one year is $50. Calculate the total cost of the plan in (a). (15 pts) (c) The ending inventories in (a) are not very close to zero. We can get closer to zero ending inventories if kis smaller / larger (choose one), explain why. (5 pts)
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