Develop a production plan and calculate the annual cost for a
firm whose demand forecast is fall, 10,100; winter, 7,600; spring,
6,600; summer, 12,100. Inventory at the beginning of fall is 505
units. At the beginning of fall you currently have 35 workers, but
you plan to hire temporary workers at the beginning of summer and
lay them off at the end of summer. In addition, you have negotiated
with the union an option to use the regular workforce on overtime
during winter or spring only if overtime is necessary to
prevent stockouts at the end of those quarters. Overtime
is not available during the fall. Relevant costs
are hiring, $100 for each temp; layoff, $200 for each worker laid
off; inventory holding, $5 per unit-quarter; backorder, $10 per
unit; straight time, $5 per hour; overtime, $8 per hour. Assume
that the productivity is 0.5 unit per worker hour, with eight hours
per day and 60 days per season. In each quarter, produce to
the full output of your regular workforce, even if that results in
excess production. In Winter and Spring, use overtime only if
needed to meet the production required in that quarter. Do not use
overtime to build excess inventory in prior seasons expressly for
the purpose of reducing the number of temp workers in
Summer. (Leave no cells blank - be certain to enter
"0" wherever required. Negative values should be indicated by a
minus sign. Round up "Number of temp workers, Workers hired
and Workers laid off" to the next whole number and all other
answers to the nearest whole number.
*******Under the "Summer" column I got 3 answer's
incorrectly. Can you please how you get the correct answers
so I better understand what I did incorrectly. Thank you for
your assistance.
Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,100; winter, 7,600;
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