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A self employed seamstress forecasts the following demand (in units) for her products for the next 8 months. Period 1 2 3 4 5 6
A self employed seamstress forecasts the following demand (in units) for her products for the next 8 months. Period 1 2 3 4 5 6 7 8 total Forecast 1200 1200 1400 3000 1200 1200 1200 1200 11600 She wants to hire two temporary workers to handle the extra workload in 4 month. The cost of hiring and training a temp worker is $50 per worker and she plans to hire and train them at the end of 3 months for work in month 4. Develop an aggregate production plan that uses steady output from the seamstress(1200 units per month) with added output from two temp workers (1000 units per person per month) in month 4. The cost per unit for seamstress is $4 per unit and for temp worker it is $5 per unit. Backorder cost is $1 per unit per month and inventory cost is $0. What is the total cost of the plan, including production, inventory and backorder costs? A) $48000 B) $48200 C) $48700 D) $49200 How many backorders would be there in the production Plan? a) 100 b) 200 c) 300 d) 400
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