Question
eRide is an electric bicycle manufacturer in Australia. The plant currently employs 20 workers who operate for 20 days a month for 8 hours in
eRide is an electric bicycle manufacturer in Australia. The plant currently employs 20 workers who operate for 20 days a month for 8 hours in each day. Workers are paid $10 per hour for normal working hours and $20 per hour for overtime. Overtime is limited to a maximum of 20 hours per month per employee. One worker can assemble a bicycle every 15 minutes. Component costs for each scooter is $90. Carrying inventory from one month to the next incurs a cost of $5 per bicycle per month. Assume the starting inventory is 4,000 units and eRide wants to end the year with minimum 3,000 units of inventory. Hiring cost is $250 and lay off cost is $350. Cost of stock out/backlog is $10 per unit per month. Assume you are the plant manager at eRide that have been tasked to provide aggregate production plan for the coming year. Below table shows the forecasted monthly demand.
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