Question
Helter Industries, a company that produces a line of womens bathing suits, hires temporaries to help produce its summer product demand. For the current four-month
Helter Industries, a company that produces a line of womens bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps can be hired when needed and can be used as needed, whereas the full-time employees must be paid whether they are needed or not. Each full-time employee can produce 204 suits, while each part-time employee can produce 164 suits per month.
Demand for bathing suits for the next four months is
MAY | JUNE | JULY | AUGUST |
---|---|---|---|
3,295 | 2,895 | 3,195 | 3,095 |
Beginning inventory in May is 405 (a complete two-piece includes both top and bottom) bathing suits. Bathing suits cost $40 to produce and carrying cost is 24 percent per year.
Develop an aggregate plan that uses the 12 full-time employees each month and a minimum number of temporary employees. Assume that all employees will produce at their full potential each month. Calculate the inventory carrying cost associated with your plan using planned end-of-month levels.
Note: Round "Inventory cost" and "Total inventory cost" to 2 decimal places and "Temp workforce" answers to the nearest whole number.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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