Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Develop a production plan and calculate the annual cost for a firm whose demand forecast is: fall, 10,000 winter, 8.000, spring. 7000 summer, 12,000. Inventory

image text in transcribed
image text in transcribed
Develop a production plan and calculate the annual cost for a firm whose demand forecast is: fall, 10,000 winter, 8.000, spring. 7000 summer, 12,000. Inventory at the beginning of falls 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring it overtime is necessary to prevent stock cuts at the end of those quarters Overtime is not available during the fall Relevant costs are hiring. 5110 for each temp, layoff $220 for each worker laid off, inventory holding, $5 per unit quarter, backorder $10 per unit, regular time, $5 per hour overtime 58 per hour Assume that the productivity is 0.5 unit per worker hour with eight hours per day and 60 days per season in each quarter, produce to the full output of your regular workforce, even if that results in excess production in Winter and Spring, use overtime only if needed to meet the production required in that quartet Do not use overtime to build excess inventory in prior seasons expressly for the purpose of reducing the number of temp workers in Summer (Leave the cells blank, whenever zero (0) is required. Negative values should be Indicated by a minus sign. Round up "Number of temp workers, Workers hired and Workers laid off to the next whole number and all other answers to the nearest whole number.) Fall Summer Winter 3.000 Spring 1000 10.000 12.000 Free Seginning Froduction Proscon nous required Production house Ove hours w Tarmowe erhout available Tech A production Ency Whe Fall Winter Spring Summer Regular time Overtime Inventory Backorder Hiring Layoff Total Annual cost s 0 $ os 0 $ 0 09 0

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

International Finance Transactions Policy And Regulation

Authors: Hal Scott, Anna Gelpern

21st Edition

1634602048, 978-1634602044

More Books

Students also viewed these Finance questions

Question

Who controls the money supply and how?

Answered: 1 week ago

Question

When is it appropriate to use a root cause analysis

Answered: 1 week ago