Question
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.
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. There are 8 hours of production per day.
Costs | Other Data | ||
Holding Costs | $8/disk drive/Month | Current Workforce(June) | 8 people |
Subcontracting | $80/disk drive | Labor-hours/disk drive | 4 hours |
Regular-time labor | $12/hour | Workdays/month | 20 days |
Overtime labor | $18/hour (above 8 hrs) | Beginning Inventory | 150 disk drives* |
Hiring cost | $40/worker | Ending Inventory | 0 disk drives |
Layoff cost | $80/worker |
*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 hiresplus signs omitted; negative numbers for layoffs.)
Plan A | ||||||
Month | Demand | Beginning Inventory | Personnel on Staff** | Units Produced | Hire/Layoff | |
June | 150 | 8 | 0 | |||
July | 400 | 1 | ||||
August | 500 | 2 | ||||
September | 550 | 3 | ||||
October | 700 | 4 | ||||
November | 800 | 5 | ||||
December | 700 | 6 |
* 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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