Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you

image text in transcribed
image text in transcribed
Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 110 workers on January 31. You are given the following demand forecast: February, 81,000; March, 66,000; April, 102,000; May, 42,000. Productivity is three units per worker hour, eight hours per day, 25 days per month. Assume zero inventory on February 1. Costs are hiring. $51 per new worker; layoff, $71 per worker laid off; inventory holding, $8 per unit-month, straight-time labor, $8 per hour: overtime, $12 per hour; backorder, $16 per unit. Develop a production plan and calculate the total cost of this plan. Note: Assume any layoffs occur at beginning of next month. (Leave no cells blank - be certain to enter " O " wherever required. Negative values should be indicated by a minus sign. Round your answers to the nearest whole number.) \begin{tabular}{|l|l|l|l|l|} \hline & \multicolumn{1}{|c|}{ February } & March & April & \multicolumn{1}{|c|}{ May } \\ \hline Straight time & & & & \\ \hline Overtime & & & & \\ \hline Inventory & & & & \\ \hline Backorder & & & & \\ \hline Hiring & & & & \\ \hline Layoff & & & & \\ \hline Total & & & & \\ \hline Total cost & & & & \\ \hline \end{tabular}

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

Strategic Project Management Made Simple

Authors: Terry Schmidt

2nd Edition

1119718171, 978-1119718178

More Books

Students also viewed these General Management questions

Question

=+ What does the usage of these products abroad look like?

Answered: 1 week ago