Jokers Wild makes playing cards in several different styles, but a "standard" deck of cards is used for planning purposes. The average worker at Jokers wild can make 10,000 sets of decks of cards per month at a cost of $2.50 per deck during regular production and $2.80 during overtime. The company currently employs 23 workers. Experience shows that it costs $1,250 to hire a worker and $1.250 to fire a worker. Inventory carrying cost is $.40 per deck per month. The beginning inventory is 36,000, and at least that amount is desired each month. Assume hiring and layoff/firing. If necessary, occur at the beginning of the month. Month Demand January 200,000 February 150,000 March 200,000 April 440,000 May 450,000 June 600,000 PrictureClick here for the Excel Data File a. Given the above demand estimate, develop a six-month production plan based on level production. (Leave no cells blank - be certain to enter "o" wherever required.) Level Production Plan Month Demand Regular Production Ending Inventory Number of Workers Hire Fire layoff January February March April May June Total 0 0 b. Determine the cost of the level production plan. Total cost c. Develop a six-month production plan based on chase by using overtime (no workers will be fired and inventory increases if necessary). (Leave no cells blank - be certain to enter "0" wherever required.) Overtime thventory Number of Workers Hire Fire layoff Chase Production Plan - Using Overtime Month Demand Regular Production January February March April May June Total 0 0 0 d. Determine the cost of the chase production plan. Total cost e. Develop a six-month production plan based on chase by changing workforce level. (Leave no cells blank - be certain to enter "O" wherever required.) Number of Workers Hire Fire layoff Chase Production Plan - Changing Workforce Level Month Demand Regular Ending Production Inventory January February March April May June Total 0 0 f. Determine the cost of the chase production plan by changing workforce level. Total cost References Worksheet Difficulty 2 Medium Learning Objective 13-05 Develop alternative aggregate production plans
