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Problem 19-14 Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. The monthly forecasts for

Problem 19-14

Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem.

The monthly forecasts for Product X for January, February, and March are 960, 1,500, and 1,170, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 490 units.

Storage cost is $4 per unit per month based on ending inventory level, standard pay rate is $4 per hour, hiring and training cost is $160 per worker, layoff cost is $260 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 42 workers and that they work 8 hours per day. (Leave no cells blank - be certain to enter "0" wherever required. Input all values as positive values. Round Workers Required up to next higher whole number. Round all other variables to nearest whole number.)

January February March
Forecast 960 1,500 1,170
Safety stock
Beginning inventory
Net production required
Workers required
Hired
Laid off
Actual production
Ending inventory

January February March
Labor cost $ $ $
Inventory cost
Hiring cost
Layoff cost
Total cost $ $ $
Total $

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