Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: D. Larry Crumbley

3rd Edition

0808017233, 9780808017233

More Books

Students also viewed these Accounting questions

Question

Define vapor.

Answered: 1 week ago

Question

=+ What scenarios could draw the audience in?

Answered: 1 week ago

Question

=+ What graphics could stop the viewer?

Answered: 1 week ago