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Helter Industries, a company that produces a line of women's bathing suits, hires temporaries to help produce its summer product demand. For the current four-month

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Helter Industries, a company that produces a line of women's bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are 12 full-time employees on staff. Temps can be hired when needed and can be used as needed on a month-by-month basis, whereas the full-time employees must be paid whether they are needed or not. Each full-time employee can produce 201 suits, while each temporary employee can produce 161 suits per month.

Demand for bathing suits for the next four months is as follows:

MAY JUNE JULY AUGUST
3,130 2,730 3,030 2,930

Beginning inventory in May is 405 complete (a complete two-piece includes both top and bottom) bathing suits. Bathing suits cost $30 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. (Round "Inventory cost" to 2 decimal places.)

May June July August
Forecast 3,130 2,730 3,030 2,930
Beginning inventory
Production required
Regular workforce
Regular production
Temp workforce
Temp production
Total production
Ending inventory
Inventory cost $ $ $ $
$

Problem 8-15 Helter Industries, a company that preduces a line of women's bathing suits, hires temporaries to help produce its summer product demand, For the current four month roling schedule, there are 12 ful tme emplovees on staff, Temps can be hired when needed and can eused: eded paid whethor they are ncodod cr not, Each tul-ime emplovoo- nproduce 201 suts, whilc cach temporary cmaloyce can produce 161 sults per month T MAY AUGUS Feginring inventory in May 405 complete (a complete twa-piece includes both top and bottam) haathing suits Rathing suits cost 53n to penduce and carying cnst is 24 percent per year oyees each month and a minimum number of temporary employees. Assume that all employees wil produce at their full potential each month. Caculate the inwentory carrying cost asscciated with your plan using planned end of nth s Bound Snventoy.cost' to 2 decimal places A 930 June July a n2 Fureca 3 130 2.730 Baginning invantary Reaular production Tetal producion Ending inenty Inventory cost

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