Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me with this problem. I am not confident that the anwers i have are correct and i cannot figure out the last chart.

please help me with this problem. I am not confident that the anwers i have are correct and i cannot figure out the last chart. THANK YOU!!
image text in transcribed
image text in transcribed
Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 11,000; winter, 7,900; spring. 6,900. summer, 13,000 Inventory at the beginning of fall is 550 units. At the beginning of fall you currently have 35 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not avallable during the fall. Relevant costs are hiring, $110 for each temp, layoff, $220 for each worker laid off, inventory holding, $5 per unit-quarter; backorder, $10 per unit, straight tume, $5 per hour, overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quarter, produce to the full output of your regular workforce, even if that results in excess production. In Winter and Spring, use overtime only if needed to meet the production required in that quarter. Do not use overtime to build excess inventory in prior seasons expressly for the purpose of reducing the number of temp workers in Summer. (Leave no cells blank - be certain to enter " 0 " wherever required. Negative volues should be indicated by o minus sign. Round up "Number of temp workers, Workers hired ond Workers loid off" to the next whole number and all other answers to the neorest whole number.) \begin{tabular}{|c|c|c|c|c|c|} \hline & & Fall & Winter & Spring & Summer \\ \hline \multicolumn{6}{|c|}{ Straight time } \\ \hline \multicolumn{6}{|l|}{ Overtime } \\ \hline \multicolumn{6}{|l|}{ Inventory } \\ \hline Backorder & & 5,775 & 4,675 & 4,125 & 7,075 \\ \hline \multicolumn{6}{|l|}{ Hiring } \\ \hline \multicolumn{6}{|l|}{ Layoff } \\ \hline \multicolumn{6}{|l|}{ Total } \\ \hline Annual 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

Wildlife Ecology Conservation And Management

Authors: Anthony R. E. Sinclair, John M. Fryxell, Graeme Caughley

2nd Edition

1405107375, 978-1405107372

More Books

Students also viewed these General Management questions

Question

Abstract of Preserving Endangered Languages

Answered: 1 week ago

Question

=+how might their legitimacy be improved?

Answered: 1 week ago