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Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the
Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data. There are 8 hours of production per day. Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Costs $8/disk drive/Month $80/disk drive $12/hour Other Data Current workforce (June) 8 people Labor-hours/disk drive Workdays/month Beginning Inventory $18/hour (above 8 hours) $40/worker $80/worker Ending Inventory 4 hours 20 days 150 disk drives* O disk drives *Note that there is no holding cost for June. What will each of the two following strategies cost? a) Vary the workforce so that production approximates demand. Chua had eight workers on board in June. (Enter all responses as whole numbers). Fill in the table below. (Enter all responses as whole numbers. In the hire/layoff column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) Plan A Month Demand 0 June Beginning Inventory 150 Personnel on Staff** Units Hire/ Produced Layoff 8 1 July 400 2 August 500 3 September 550 4 October 700 5 November 800 6 December 700 *No costs are incurred for unmet demand. **When computing "Personnel on Staff," if 0.5 or more of an employee is needed round up and hire one more employee; if less than 0.5, round down.
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