Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Develop a production plan and calcutate the annual cost for a firm whose demand forecast is fall, 10,000, winter, 8,000, spring. 7,000, summer, 12,000. Inventory
Develop a production plan and calcutate the annual cost for a firm whose demand forecast is fall, 10,000, winter, 8,000, spring. 7,000, summer, 12,000. Inventory at the beginning of fall is 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 surmer in addition, you have negotlated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtme is not avallable during the fall. Relevant costs are hiring, $100 for each temp; layoft, $200 for each worker laid oft, inventory holding. $5 per unit-quarter, backorder, $10 per unit, straight ume, $5 per hour, overtime, $8 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 quarter. Do not use overume to bulld excess inventory in prior seasons expressly for the purpose of reducing the number of temp workers in Summer. (Leave no cells blank. be certain to enter " 0 wherever required. Negative values should be Indicated by a minus sign. Round up "Number of temp workers, Workers hired ond Workers laid off" to the next whole number and all other answers to the nearest whole number.) \begin{tabular}{|l|l|l|} \hline Straight time \\ \hline Overtime & Fall \\ \hline Inventory & \\ \hline Backorder & \\ \hline Hiring & \\ \hline Layoff & \\ \hline Total & \\ \hline \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started