Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

 

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 940, 1,530, and 1,200, 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 450 units.

 

Manufacturing cost is $170 per unit, storage cost is $6 per unit per month, standard pay rate is $6 per hour, hiring and training cost is $170 per worker, layoff cost is $270 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 41 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.)

 

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve this problem regarding product demand forecasts safety stock and beginning inventory follow these steps Step 1 Calculate Safety Stock The saf... 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

Operations Management Sustainability And Supply Chain Management

Authors: Jay Heizer, Barry Render, Chuck Munson, Paul Griffin

3rd Canadian Edition

0134838076, 978-0134838076

More Books

Students also viewed these General Management questions