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Neal Industries manufactures blue jeans for the teen market. The S&OP team has agreed upon a demand forecast for the following year, as shown below.
Neal Industries manufactures blue jeans for the teen market. The S&OP team has agreed upon a demand forecast for the following year, as shown below. The company begins with 1,800,000 jeans in safety stock and desires to maintain this level consistently (and end with this level), assume that the overtime production wage rate is $24 per hour. PLEASE HELP !
Quarter 2 4 Demand 7,500,000 8,300,000 15,000,000 12,500,000 Current workforce Average output per worker Inventory holding cost Regular wage rate Regular production hours Hiring cost Firing/layoff cost Beginning inventory 300 workers 25,000 jeans per quarter $ 0.50 pair per quarter 16 per hour 500 hours per quarter $ 330 per worker $240 per worker $1,800,000 a. Develop a chase plan using a stable workforce of 300 workers. (Leave no cells blank -be certain to enter "O" wherever required.) Regular Production Overtime Production Ending Invento Workers Required QuarterDemand Hire Fire layoff 7,500,000 8,300,000 15,000,000 12,500,000 43,300,000 Total b. Compute the cost of a chase plan using a stable workforce of 300 workers Total costStep by Step Solution
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