Question
JokersRWild makes decks of playing cards in many styles, but uses their standard deck for planning purposes. The average worker at JokersRWild can make 10,000
JokersRWild makes decks of playing cards in many styles, but uses their "standard" deck for planning purposes. The average worker at JokersRWild can make 10,000 decks of cards per month at a cost of $0.90 per deck during regular production and $1.30 per deck during overtime. The company currently employs 25 workers. Experience shows that it costs $750 to hire a worker and $500 to fire a worker. Inventory carrying cost is $0.15 per deck per month. The beginning inventory is 50,000 decks, and at least that amount is desired to be held in inventory each month.
Given the following demand estimate, develop three six-month production plans, one each based on the following strategies:
- level production
- chase by changing workforce level
- chase using overtime
If you get any decimal values for # of workers required, round up to the nearest integer and be sure to include the total cost of each plan.
Month | January | February | March | April | May | June |
Demand | 270,000 | 210,000 | 275,000 | 450,000 | 225,000 | 550,000 |
Upload an Excel file with completed plans in the format of the picture below for each strategy. Show which equations were used when solving.
Level Production PlanStep by Step Solution
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