Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan f
ID: 363236 • Letter: C
Question
Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data. There are 8 hours of production per day.
Costs
Holding cost
$8/disk
drive/Month
Subcontracting
$80/disk
Regular-time labor
$12/hour
Overtime labor
$18/hour
Hiring cost
$40/worker
Layoff cost
$80/worker
Other Data
Current workforce (June)
8
Labor-hours/disk
4
Workdays/month
20
Beginning Inventory
150
drives*
Ending Inventory
drives
*Note that there is no holding cost for June.
What will the following strategy cost?
This exercise only contains part a.
a) Vary the workforce so that production approximates demand. Chua had eight workers on board in June. (Enter all responses as whole numbers). Fill in the table below. (Enter all responses as whole numbers. In the hire/layoff column, use positive numbers for hireslong dash—plus signs omitted; negative numbers for layoffs.)
Plan A
Month
Demand*
Beginning Inventory
Personnel onStaff**
Units
Produced
Hire / Layoff
0
June
150
8
1
July
400
2
August
500
3
September
550
4
October
700
5
November
800
6
December
700
* No costs are incurred for unmet demand. **When computing "Personnel on Staff," if 0.5 or more of an employee is needed round up and hire one more employee; if less than 0.5, round down.
Costs
Holding cost
$8/disk
drive/Month
Subcontracting
$80/disk
driveRegular-time labor
$12/hour
Overtime labor
$18/hour
(above 8 hours)Hiring cost
$40/worker
Layoff cost
$80/worker
Other Data
Current workforce (June)
8
peopleLabor-hours/disk
drive4
hoursWorkdays/month
20
daysBeginning Inventory
150
diskdrives*
Ending Inventory
0 diskdrives
*Note that there is no holding cost for June.
Explanation / Answer
Solution :
Chase Production Plan Month Demand Beginning Inventory Personnel Staff Units Produced Hire / Layoff Jun 150 8 Jul 400 150 6 240 -2 Aug 500 0 13 520 7 Sep 550 20 13 520 0 Oct 700 0 18 720 5 Nov 800 20 20 800 2 Dec 700 20 17 680 -3Related Questions
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