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Maria and Liz are students in their final year of engineering and business programs at State University. They have established a company called ML Computer

  • Maria and Liz are students in their final year of engineering and business programs at State University. They have established a company called ML Computer Services, which manufactures and markets their own brand of personal computers. The duo purchases component parts from various sources both domestically and internationally, and they assemble the computers in their apartment, mostly during night-time. Their main customers are State University departments and other students. To assist with the assembly, testing, and packaging of computers, they employ other students. Maria and Liz oversee all aspects of the business, including sales and accounting. They hire students on a monthly basis and pay them $8 per hour for a 40-hour week, which amounts to $1,280 per month. ML Computer Services employs five students, who can assemble an average of 12.7 computers per month. They follow a monthly delivery schedule, and if their regular production capacity falls short of the monthly demand, they offer limited overtime to complete the orders. Overtime work costs $12 extra for each computer produced, and an employee can produce 0.6 computers per month on overtime. The orders for the next 6 months are shown. Month Computer Ordre 1 63 2 74 3 57 4 68 5 86 Previously, ML Computer Services has fulfilled its demand by producing computers through regular and overtime production. However, in months with insufficient regular and overtime production, they would produce computers in advance when they had available capacity. Due to limited space in their apartment, they had to lease a climate-controlled warehouse to store their completed computers, which incurred a cost of $15 per month for each computer. To transport the computers to the warehouse and pay for handling also incurred additional costs. Now, Maria and Liz are considering a new production strategy. This strategy involves hiring new workers on a monthly basis when they are needed and laying them off when they are not. The cost of hiring a new worker is $200, mainly for paperwork and training, and the cost of laying off a worker is $320, equivalent to one weeks wages. They want to maintain a good relationship with their laid-off workers as they may want to rehire them in the future. Create a schedule for ML Computer Services that outlines the number of employees who will work each month, including those who will be hired and those who will be laid off. Also, indicate the number of computers that will be produced each month during regular time and overtime, as well as the number of computers that will be kept in inventory each month. The inventory should be depleted by the end of month 6. Provide integer values for all variables in the solution. Compare this solution to one that doesnt have integer restrictions. Answer using Excel

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