Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cost data Regular time labor cost per hour $10 Overtime time labor cost per hour $15 Subcontracting cost per unit (labor only) $80 Back order

Cost data

Regular time labor cost per hour $10

Overtime time labor cost per hour $15

Subcontracting cost per unit (labor only) $80

Back order cost per unit per period $20

Inventory holding cost per unit per period $10

Hiring cost per employee $500

Firing cost per employee $400

Capacity data

Beginning workforce 40 employees

Beginning inventory 0 units

Beginning back orders 0 units

Production standard per unit (hours) 2 hours of labor per unit

Regular time available per period (hours) 160 hours per period per employee

Overtime time available per period (hours) 30 hours per period per employee

Demand data

Period 1 3,920 units Period 5 3,800 units

Period 2 2,480 units Period 6 4,340 units

Period 3 2,200 units Period 7 4,820 units

Period 4 3,280 units Period 8 4,600 units

Develop a hybrid aggregate plan with inventory, but no back orders. Also, use no undertime and no subcontracting. Also use no firing, since the company is projecting a 20% annual growth rate per year over the next several years. When demand minus opening inventory exceeds regular plus maximum overtime production, hire enough employees to meet demand, working as much overtime as possible. When demand is less than regular time production, work no overtime and add to inventory (data given above).

What is the workforce at the end of the last period?

How many total were hired?

(b) How many total units were produced using overtime?

(c) What is the maximum ending inventory and when does it occur?

(d) What is the total cost?

(e) What is the cost per unit?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

My opinions/suggestions are valued.

Answered: 1 week ago