Mike's Exhaust Works produces efficient exhaust systems used on custom motorcycles. They sell their systems to other manufacturers, who build customized bikes to clients. Kari is the sales manager, and she has created the following projected demand schedule for Tom, the production manager.

Mike's Exhaust Currently has 50 tradesmen who each work 20 days a week, and can produce 15 exhaust systems per day.

a) Assuming that the company is only concerned with aggregate yearly demand, should the labor force be changed, and if so, how?

b) Assuming that the company is concerned with meeting monthly demand, how should the

c) Each time the company lays off an employee, the expenses for the layoff are $19,000. In this year, how much are the costs of layoffs?

d) During busy times, the tradesmen at Mike's will happily take up to 50% overtime each month. Each worker makes $140 a day and overtime is 50% above standard rate. Using a fixed staff of 50, use overtime to calculate the number of work days needed to fill demand. You will need to construct an Excel calculation like those in questions a-c, and you are allowed to have fractional work days in this calculation.

e) Construct an Excel calculation to determine the salary cost in the above example (d)?

f) Compare this salary cost to the salary + layoff cost in (c . Which is better? (In this calculation you will have fractional workers - use this for costs, but keep your layoff expenses rounded)

i) There is a sudden shift in demand in December to 15,300 units, while the workforce is at 50 tradesmen. Assume time + 50% overtime or a $21,000 layoff cost per employee - what is the best financial decision for the company?

Fill out these cells => Fill out these cells => Background inlormation Mike's Exhaust Works produces efficient exhaust systems used on custom motorcycles. They sell their systems to other manulauturersJ who build customized bikes to clients. Kari is the sales manager, and she has created the lollowing proiected demand schedule lor Tom, the production manager. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Maw Dec Projected Demand 15000 19000 20500 21000 22000 21000 21000 19500 15000 15200 15000 15000 e> Mike's Exhaust Currently has 50 tradesmen whb each work 20 days a monthJ and can each produce 15 exhaust systems per day. For Each problem Ii in the cells with the RED " The GREEN CELLS are calculated cells. The BLACK CELLS are given data. a) Assuming that the company is only concerned with aggregate yearly demand, should the labor force [workers] be changed? Enter the number of workers for each month until the yearly demand [223,200] equals the yearly production you calculate by changing the number of workers. Note that the number oi workers need to be the same lor all months in this case when you are calculating the yearly production. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Maw Dec Projected Demand 15000 19000 20500 21000 22000 21000 21000 19500 15000 15200 15000 15000 e> Workers ? ? ? ? ? ? ? ? ? ? ? ? Work days 20 20 20 20 20 20 20 20 20 20 20 20 Units/Worker day 15 15 15 15 15 15 15 15 15 15 15 15 Units Produced VALUE! VALUE! VALUE! VALUE! VALUE! VAL ! VALUE! VALUE! VAL E! VALUE! VALUE! VALUE! 1) b) Assuming that the company is only concerned with aggregate monthly demand, how should the labor force be changed to meet the monthly demand? [round to the nearest whole employee- monthly demand must be met. no underproduction allowed). Enter the number of workers for each month to match each month's demand with the monthly production. Note. that each month could have a different number of workers. 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Projected Demand 15000 19000 20500 21000 22000 21000 21000 19500 15000 16200 15000 15000 Worker's ? ? ? ? ? ? ? ? ? ? ? ? Work days 20 20 20 20 20 20 20 20 20 20 20 20 UnitsMorker day 15 15 15 15 15 15 15 15 15 15 15 15 Units Produced #VALUE! \"VALUE! \"VALUE! \"VALUE! \"VALUE! ! #VALUE! #VALUE! #VAL E! #VALUE! \"VALUE! \"VALUE! 223200 223200 #VALUE!