Question
I need excel solution please for this XYZ Company produces a variety of bushes for the oil and gas sector. In the month of Dec
I need excel solution please for this
XYZ Company produces a variety of bushes for the oil and gas sector.
In the month of Dec 2022, the XYZ company produced 3200 bushes in 20 working days, employing a workforce of 25 in each of those days. Working days are 8 hours long.
Projected demand for bushes during the next six months is as follows:
Month | Workdays | Forecast Demand (aggregate units) |
January | 21 | 2,632 |
February | 19 | 5,032 |
March | 22 | 5,200 |
April | 18 | 5,832 |
May | 23 | 4,200 |
June | 20 | 2,200 |
Worker hiring costs are OMR 300 per worker and firing costs are OMR 500 per worker. Holding costs are OMR 2 per unit per month, and backorder cost is OMR 5 per unit per month. At the beginning of Jan 2023, the XYZ Company had 1000 bushes on hand. Furthermore, the company wishes to have at least 500 bushes in stock (inventory) on July 1st 2023. Workers are paid 4 OMR per hour for regular time labor. Overtime labor costs 6 OMR per worker per hour. The maximum budgeted overtime hours allowed is 300 hours per month. Marginal subcontracting cost per unit is 30 OMR. Variable internal production cost per unit is 10 OMR.
1- Using level strategy, find the minimum constant workforce plan for the six months, and the total cost of the plan. Shortages are not permitted at any time. The plan should show the production and subcontracting levels, workforce levels, number hired, number fired, and ending inventory for each month. You may hire or fire workers only at the start of Jan, and no overtime production is allowed. Calculate the cost of this plan
with excel file please
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