Helter Industries, a company that produces a line of women\'s bathing suits, hir

Question

Helter Industries, a company that produces a line of women's bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps can be hired when needed and can be used as needed, whereas the full-time employees must be paid whether they are needed or not. Each full-time employee can produce 203 suits, while each part-time employee can produce 163 suits per month.

     Beginning inventory in May is 408 complete (a complete two-piece includes both top and bottom) bathing suits. Bathing suits cost $30 to produce and carrying cost is 24 percent per year.

    Develop an aggregate plan that uses the 12 full-time employees each month and a minimum number of temporary employees. Assume that all employees will produce at their full potential each month. Calculate the inventory carrying cost associated with your plan using planned end of month levels. (Round "Inventory cost" to 2 decimal places.)

Helter Industries, a company that produces a line of women's bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps can be hired when needed and can be used as needed, whereas the full-time employees must be paid whether they are needed or not. Each full-time employee can produce 203 suits, while each part-time employee can produce 163 suits per month.

     Demand for bathing suits for the next four months is as follows:

Explanation / Answer

Annual carrying cost= $30*24%=$7.2. Monthly carrying cost per unit= 47.2/12=$0.6

May June July Aug Forecast 3280 2880 3180 3080 Begining Inventory 408 53 45 71 Production required 2872 2827 3135 3009 Regular workforce 12 12 12 12 Regular production 2436 2436 2436 2436 Temp workforce 3 3 5 4 Temp production 489 489 815 652 Total production 2925 2925 3215 3088 Closing inventory 53 45 71 8 Inventory Cost in $ 31.8 27 42.6 4.8

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