Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 4b I'm having trouble figuring out my grid after January. I have the solutions to the grid but there aren't any explanations for the
Problem 4b
I'm having trouble figuring out my grid after January. I have the solutions to the grid but there aren't any explanations for the values.
Problem
My grid
Solution
The forecast demand for an item is: Inventory holding cost is $5/ unit/month. (Holding cost is based on ending invientories.) Hiring cost is $2,000 /employee. Firing cost is $500 /employee. Straight-time cost of a permanent employee is $2,000 /worker/month. Overtime cost is 1.5 straight time. (Overtime is available in increments of worker-months.) Each worker can produce 100 units per month on straight time. The present permanent workforce is 100 employees. Temporary workers can be used at a straight time cost of $2,750 per month with no hiring or firing cost. However, each temporary worker must stay for a MINIMUM ENGAGEMENT of at least two months. Temporary workers have the same productivity as permanent workers. Beginning inventory, at the beginning of January, is 0 units. a. Find the least-cost "level" aggregate production plan with a constant workforce. For this plan: (i) Find the ending inventory in June. (ii) Find the total cost of this aggregate production plan. b. Find the least-cost "chase" aggregate production plan. Production may be varied by changing the size of the permanent workforce, using overtime, or using temporary workers. For this plan: (i) Find the ending inventory in June. (ii) Find the total cost of this aggregate production plan. Peoplen Hybb CHASE STEAREGY Q Provuction =100 waK 160 unlts =10000 Least-oost "chase" plans have a total cost of $1,413,500..10 One of several possible chase plans is
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