four periods. (d) W hich plan would you recommend, and why? Standa indicate that
ID: 2339075 • Letter: F
Question
four periods. (d) W hich plan would you recommend, and why? Standa indicate that one worker can assemble five printers per day. This model costs about $350to and the company figures it costs $5 to hold one printer in inventory for one month. Wo S1500 per month and can be hired for $500 each: firing a worker costs' $750. Curre month. 5.10. X Print Manufacturing makes laser printers. One plant assembles the PL-4000 model, Stu Workers earn 12 workers in the assembly department.If a printer is backordered, the cost is $35 per uni Month Working Days 21 22 Demand July August September October November December Total 126 21 1020 950 x) 19 1250 20 650 1000 5670Explanation / Answer
1) Chase method solution:
Month
Demand
Workers
Days
Production
Inv
B/O
Hire
Fire
12
50
0
July
1020
10
20
1000
30
0
2
August
950
10
20
1000
80
0
0
September
800
8
20
800
80
0
2
October
1000
10
20
1000
80
2
0
November
1250
12
20
1200
30
2
0
December
650
7
20
700
80
0
5
Total
57
5700
380
0
4
9
Cost: 2,091,150 or 96,150 (not inclusive of production cost)
Constant workforce method solution, when no backorders are allowed:
Month
Demand
Workers
Days
Production
Inv
B/O
Hire
Fire
12
50
0
July
1020
10
20
1000
30
0
2
August
950
10
20
1000
80
0
0
September
800
10
20
1000
280
0
0
October
1000
10
20
1000
280
0
0
November
1250
10
20
1000
30
0
0
December
650
10
20
1000
380
0
0
Total
60
6000
1080
0
0
2
Cost: 2,196,900 or 96,900 (not inclusive of production cost)
Constant workforce method solution, when backorders are allowed:
Month
Demand
Workers
Days
Production
Inv. Pos.
Inv
B/O
Hire
Fire
12
50
50
0
July
1020
10
20
1000
30
30
0
0
2
August
950
10
20
1000
80
80
0
0
0
September
800
10
20
1000
280
280
0
0
0
October
1000
10
20
1000
280
280
0
0
0
November
1250
10
20
1000
30
30
0
0
0
December
650
10
20
1000
380
380
0
0
0
Total
5670
60
6000
1080
1080
0
0
2
Cost: 2,196,900 or 96,900 (not inclusive of production cost)
Allowing backorders had no impact on the costs because we did not actually require to have any backorders with the plan. Thus at least with these specific production and demand numbers, allowing backorders had no gain
4)
Chase – shutdown in October
Month
Demand
Workers
Days
Production
Inv
B/O
Hire
Fire
12
50
0
July
1020
10
20
1000
30
0
2
August
950
10
20
1000
80
0
0
September
800
8
20
800
80
0
2
October
1000
12
16
960
40
4
0
November
1250
13
20
1300
90
1
0
December
650
6
20
600
40
0
7
Total
59
5660
360
0
5
11
Cost: 2,082,050 or $101,050 (not inclusive of cost of production )
Chase – shutdown in December
Month
Demand
Workers
Days
Production
Inv
B/O
Hire
Fire
12
50
0
July
1020
10
20
1000
30
0
2
August
950
10
20
1000
80
0
0
September
800
8
20
800
80
0
2
October
1000
10
20
1000
80
2
0
November
1250
12
20
1200
30
2
0
December
650
11
12
660
40
0
1
Total
61
5660
340
0
4
5
Cost: 2,079,950 or $98,950 (not inclusive of cost of production )
Constant Workforce with backorders – October
Month
Demand
Workers
Days
Production
Inv
B/O
Hire
Fire
12
50
0
July
1020
10
20
1000
30
0
2
August
950
10
20
1000
80
0
0
September
800
10
20
1000
280
0
0
October
1000
10
16
800
80
0
0
November
1250
10
20
1000
170
0
0
December
650
10
20
1000
180
0
0
Total
60
5800
650
170
0
2
Cost: 2,130,700 or $100,700 (not inclusive of cost of production )
Constant Workforce with backorders – December
Month
Demand
Workers
Days
Production
Inv
B/O
Hire
Fire
12
50
0
July
1020
11
20
1100
130
0
1
August
950
11
20
1100
280
0
0
September
800
11
20
1100
580
0
0
October
1000
11
20
1100
680
0
0
November
1250
11
20
1100
530
0
0
December
650
11
12
660
540
0
0
Total
66
6160
2740
0
0
1
Cost: 2,26,450 or $113,450 (not inclusive of cost of production )
Constant Workforce, no backorders - October
Month
Demand
Workers
Days
Production
Inv
B/O
Hire
Fire
12
50
0
July
1020
11
20
1100
130
0
1
August
950
11
20
1100
280
0
0
September
800
11
20
1100
580
0
0
October
1000
11
16
880
460
0
0
November
1250
11
20
1100
310
0
0
December
650
11
20
1100
760
0
0
Total
66
6380
2520
0
0
1
Cost: 2,345,350 or $112,350 (not inclusive of cost of production )
Constant Workforce, no backorders - December
Month
Demand
Workers
Days
Production
Inv
B/O
Hire
Fire
12
50
0
July
1020
11
20
1100
130
0
1
August
950
11
20
1100
280
0
0
September
800
11
20
1100
580
0
0
October
1000
11
20
1100
680
0
0
November
1250
11
20
1100
530
0
0
December
650
11
12
660
540
0
0
Total
66
6160
2740
0
0
1
Cost: 2,26,450 or $113,450 (not inclusive of cost of production )
When choosing the chase method, the December shutdown is better because the cost is lesser. However with either type of constant workforce method, the October shutdown cost is lesser. Moreover we had to change few parameter to satisfy the demand over the planning horizon. Thus would not simply shut down the plant and not allowed to make any adjustments
Month
Demand
Workers
Days
Production
Inv
B/O
Hire
Fire
12
50
0
July
1020
10
20
1000
30
0
2
August
950
10
20
1000
80
0
0
September
800
8
20
800
80
0
2
October
1000
10
20
1000
80
2
0
November
1250
12
20
1200
30
2
0
December
650
7
20
700
80
0
5
Total
57
5700
380
0
4
9
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