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Problem 13-2 Neal Industries manufactures blue jeans for the teen market The S&OP team has agreed upon a demand forecast for the following year, as
Problem 13-2 Neal Industries manufactures blue jeans for the teen market The S&OP team has agreed upon a demand forecast for the following year, as shown below. The company begins with 1,200,000 jeans in safety stock and desires to maintain this level consistently (and end with this level), assume that the overtme production wage rate is $30 per hour Quarter 1 Demand 7,500000 2 9,200,000 15.000.000 13,400,000 3 4 Current workforce 300 workere Average output per worker Inventory holding cost Regular wage rate Reguiar production hours Hiring cost Firingayoff cost Begineing inventory 25.000 jeans per quarter 040 pair per oarter 20 per hour s00 hours per quarter 420 per workan 330 per worker $1,200,000 hot 7 PM a. Develop a chase plan using a stable workforce of 300 workers. (Leave no cells blank - be certain to enter "O" wherever required.) Regular Production Overtime Production Ending Inventory Workers Quarter Demand Hire Fire layoff Required 300 1 7,500,000 7,500,000 0 1,200,000 300 7,500,000 2 9,200,000 1,700,000 300 1,200,000 7,500,000 3 15,000,000 1,200,000 1,200,000 7,500,000 300 0 7,500,000 4 13,400,000 5,900,000 300 03 Total 45,100,000 30,000,000 15,100,000 4,800,000 300 C b. Compute the cost of a chase plan using a stable workforce of 300 workers. Total cost
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