Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Plan production for a four-month period: Februarythrough May. For February and March, you should produce to exact demand forecast. For April and May, you should
Plan production for a four-month period: Februarythrough 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; sfabfe means that the number ofworkers needed for March will be held constantthrough 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 90 workers on January 31. You are given the following demand forecast: February, 80,640; March, 60,480; April, 100,160; May, 40,160. Productivity is four units per worker hour, eight hours per day, 21 days per month. Assume zero inventory on February 1. Costs are hiring, $52 per new worker; layoff, $72 per worker laid off; inventory holding, $8 per unitmonth; straighttime labor, $8 per hour; overtime, $12 per hour; backorder, $16 per unit. Develop a production plan and calculate the total cost ofthis plan. Note: Assume any layoffs occur at beginning of next month. [Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to the nearest whole number.} Beginning inventory n-mn Production required Production hours required "mm Regular workforce -mmm Regular production evenimenours uni-.1 Overtime production nm-m Total production m Ending backorders In\" Workers hired Workers laid off
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started