Develop a production schedule to produce the exact production requirements by va

Question

Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. The monthly forecasts for Product X for January, February, and March are 1,030, 1,470, and 1,100, respectively. Safety stock policy recommends that half of the forecast for that m be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 600 units Manufacturing cost is $190 per unit, storage cost is $7 per unit per month, standard pay rate is $4 per hour, overtime rate s $6 per hour, cost of stockout is $12 per unit per month, hiring and training cost is $230 per worker, layoff cost is $330 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 49 workers and that they work 8 ho per day (Leave no cells blank-be certain to enter "O wherever required. Input all values as positive values. Round Workers Required up to next higher whole number. Rou all other variables to nearest whole number.) February March Forecast 1,030 1470 100 Safely stock Beginning inventory Nel production required Wokers required Hired Laid off Actual production Ending inventor Febraary March ventory Layot

Explanation / Answer

Used formulae

Hour 8 8 8 Days 22 19 21 Jan Feb March Rates Forecast 1030 1470 1100 0.5 SS 515 735 550 BI 0 4 3 0.1 Net Prod 1545 2201 1647 49 Workers req 88 145 99 Hired 39 57 0 Laid off 0 0 46 Actual Prod 1549 2204 1663 Ending 4 3 16 190 4 Labor 61952 88160 66528 7 Inv 28 21 112 230 Hiring 8970 13110 0 330 Layoff 0 0 15180 Total 70950 101291 81820 Grand Total 508122

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