Answer Happy

Michael Carrigg, Inc., is a disk manufacturer in need of an aggregate plan for July through December. The company has gathered the following data: Costs Other Data $8/disk/Month $80/disk 4 hours Holding cost Subcontracting Regular-time labour Overtime labour Hiring cost Layoff cost 20 days Current workforce (June) 8 people Labour-hours/disk Workdays/month Beginning Inventory Ending Inventory $12/hour $18/hour (above 8 hours) $40/worker $80/worker 200 disk 0 disk Q Demand July 400 Aug. 500 I Sept. Oct. 550 700 800 700 Nov. Dec 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** 200 Units Produced Hire / Layoff Month Demand 0 June 8 1 July 400 2 August 500 3 September 550 4 October 700 5 November 800 6 December 700 **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.