Answered step by step
Verified Expert Solution
Question
1 Approved Answer
what's the total ? ABC company produce a product which has a 6 months demand cycle time some information is given in the following itable
what's the total ?
ABC company produce a product which has a 6 months demand cycle time some information is given in the following itable As of July there are 20 permanent workers available per month. The idle time cost is $6/hr. and the overtime rate is $3/hr. It costs the company $300 hire a worker and $400 to fire a worker. There are currently 50 units in stock carried at a cost of $2/ unit-month. The shortage cost is $20/ unit-month. The company policy is to have a safety stock of 20% of the monthly forecast and each month's safety stock become the beginning inventory for the next month. The total safety stock for all the 6-month cycle should be equal to 340 units. Each unit requires 7 worker hours to produce. Prepare an aggregate plan as follow: Maintain constant work force and build inventory or incur stock-out cost. What will be the total cost of using this aggregate ABC company produce a product which has a 6 months demand cycle time some information is given in the following itable As of July there are 20 permanent workers available per month. The idle time cost is $6/hr. and the overtime rate is $3/hr. It costs the company $300 hire a worker and $400 to fire a worker. There are currently 50 units in stock carried at a cost of $2/ unit-month. The shortage cost is $20/ unit-month. The company policy is to have a safety stock of 20% of the monthly forecast and each month's safety stock become the beginning inventory for the next month. The total safety stock for all the 6-month cycle should be equal to 340 units. Each unit requires 7 worker hours to produce. Prepare an aggregate plan as follow: Maintain constant work force and build inventory or incur stock-out cost. What will be the total cost of using this aggregate 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