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Consuelo Chua, Inc. is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following
Consuelo Chua, Inc. is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Mr. Chua that you can do a better job at aggregate planning than his current staff, He said, "Fine. You do that, and you have a 1-year contract." To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Costs Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost $8/disk drive/Month $80/disk drive $12 Other data Current workforce (June) 8 people) Labor-hours/disk drive Beginning Inventory Workdays/month $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 Fill in the table below. (Enter all responses as whole numbers in the hirefire column use positive numbers for hees-plus signs omitted, negative numbers for layoffs) Beginning Units Month Demand Inventory Produced Ending Personnel on Hire/ Staff Layoff Inventory 0 June 150 8 1 July 350 2 August 480 3 September 500 4 October 500 5 November 800 6 December 720
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