Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Plan production for a four-month perlod: 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 perlod: 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 100 workers on January 31. You are given the following demand forecast: February, 80,000; March, 64,000; April, 100,000; May, 40,000 . Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1 . Costs are: hiring, $50 per new worker; layoff, $70 per worker lald off; inventory holding. $10 per unit-month; regular time labor, $10 per hour; overtime, $15 per hour, backorder, $20 per unit. Develop a production plan and calculate the total cost of this plan. Note: Assume any layoffs occur at beginning of next month. Note: Leave the cells blank, whenever zero (O) is 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 & February & March & April & \\ \hline Regular time & & & & \\ \hline Overtime & & & & \\ \hline Inventory & & & & \\ \hline Backorder & & & & \\ \hline Hiring & & & & \\ \hline Layoff & & & & \\ \hline Total & & & & \\ \hline Total cost & & & & \\ \hline \end{tabular} Plan production for a four-month perlod: 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 100 workers on January 31. You are given the following demand forecast: February, 80,000; March, 64,000; April, 100,000; May, 40,000 . Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1 . Costs are: hiring, $50 per new worker; layoff, $70 per worker lald off; inventory holding. $10 per unit-month; regular time labor, $10 per hour; overtime, $15 per hour, backorder, $20 per unit. Develop a production plan and calculate the total cost of this plan. Note: Assume any layoffs occur at beginning of next month. Note: Leave the cells blank, whenever zero (O) is 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 & February & March & April & \\ \hline Regular 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_2

Step: 3

blur-text-image_3

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

The Handbook For Investment Committee Members

Authors: Russell L. Olson

1st Edition

0471719781, 978-0471719786

More Books

Students also viewed these Finance questions

Question

Perform an Internet search. Discuss a company that uses EPLI.

Answered: 1 week ago

Question

How do you feel about employment-at-will policies? Are they fair?

Answered: 1 week ago