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Part 1: A company produces three different types of cameras. The hours required to produce each model are listed in the following table: Camera Model
Part 1: A company produces three different types of cameras. The hours required to produce each model are listed in the following table: Camera Model Hours Required Model A 1.6 Model B 1.8 Model C 2.3 As of January there are 95 permanent workers and 165 production hours available per worker per month. The forecast demand for each model in the first half of next year is shown in the table below: Model A B C January 5000 3500 1000 February 5600 4300 1200 March 5300 4500 1250 April 5100 4600 1430 May 5400 4000 900 June 4000 4080 1100 The idle time cost is $7/hr. and the overtime rate is $4/hr. It costs the company $1300 to hire a worker and $1500 to fire a worker. There are currently 1000 units of Model A, 900 units of Model B and 800 units of Model C in the inventory (beginning inventory for January). The inventory cost is $15/unit-month and the shortage cost is $35/unit-month. The company policy is to have a safety stock of 15 % of the monthly forecast of each model and each month's safety stock for each model become the beginning inventory for the next month. Prepare an aggregate plan as follow: 1- Varying work force size 2- Maintain constant work force of 95 workers and use overtime and idle time. 3- Maintain constant work force of 95 workers and build inventory or incur stock-out cost. Which aggregate plan do you suggest the company to work with? Specify your answer showing tables
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