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Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters.
Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters. The number of available days of production and the anticipated demand are given below.
tableQQQQDemand
They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below.
tableEmployeesHire Cost,$ employeeProduction Rate,unitsemployeequarterFire Cost,$ employeeProduction Cost,$ unit,tableSubcontractingCost$ unitBackorder Cost,$ unitquartertableSubcontractingLimit units maximumOvertime Cost,$ unit,Inventory Cost,$ unitquarterOvertime Limit,table of Reg.ProductionInitial Inventory, units
Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with inventory and backorders as needed. What is the total cost of this plan?
Question
pts
If management at Deforrest Marine Motors is interested in a chase strategy using a hirefire option, what is the total cost of this plan? They plan on using a policy where if the need were for workers, they would hire workers for that quarter. Hint: this will impact regular time production and inventory.
Question
pts
If management at Deforrest Marine Motors is interested in a level strategy with their current employees using overtime and subcontracting when demand cannot be balanced with inventory, what is the total cost of this plan?
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