Question
Using the following table: February March Forecast 80,640 64,000 Beginning Inventory Production required Production hours required Regular workforce Regular production Total Production Ending inventory Ending
Using the following table:
February March Forecast 80,640 64,000 Beginning Inventory
Production required
Production hours required
Regular workforce
Regular production
Total Production
Ending inventory
Ending backorders
Workers hired
Workers layed off
If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 80,640; March, 64,000; Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1. Costs are hiring, $52 per new worker; layoff, $72 per worker laid off; inventory holding, $12 per unit-month; straight-time labor, $8 per hour; overtime, $12 per hour; backorder, $16 per unit.
Develop a production plan and calculate the total cost of this plan.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started