- Michael Carrigg Inc Is A Disk Manufacturer In Need Of An Aggregate Plan For July Through December The Company Has Ga 1 (49.69 KiB) Viewed 38 times
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What is the Total Inventory Cost?
Michael Carrigg, Inc., is a disk manufacturer in need of an aggregate plan for July through December. The company has gathered the following data: Other Data Costs $8/disk/Month Holding cost Subcontracting $80/disk Regular-time labour $12/hour Current workforce (June) 8 people Labour-hours/disk 4 hours Workdays/month 20 days 200 disk 0 disk Overtime labour $18/hour (above 8 hours) Beginning Inventory Ending Inventory Hiring cost $40/worker Layoff cost $80/worker D Demand July 400 Aug. 500 D Sept. 550 Oct. 700 Nov. 800 Dec. 700 What will each of the two following strategies cost? a) Vary the workforce so that production approximates demand. Carrigg had eight workers on board in June. Fill in the table below. (Enter all responses as whole numbers. In the hire/layoff column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) Plan A Beginning Personnel on Inventory Staff** Units Produced Hire / Layoff Month Demand 0 June 200 8 1 July 400 200 5 200 2 August 500 0 13 520 3 September 550 20 14 550 1 4 4 October 700 30 18 720 5 November 800 50 20 800 2 6 December 700 50 17 680 -3 **In computing personnel on staff, assume that, if the capacity of a fraction of a worker is needed (i.e., the personnel on staff in the previous month is less than the personnel required for the current month), one worker is hired. If the capacity of a fraction of a worker is excess (i.e., the personnel on staff in the previous month is greater than the personnel required for the current month), one worker is laid off. The total inventory cost is $. (Enter your response as a whole number.)