Develop a production plan and calculate the annual cost for a firm whose demand
ID: 363830 • Letter: D
Question
Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall, you have 30 workers. It is time temporary workers will be hired at the beginning of Summer and laid off at the end of Summer. Therefore, no hiring or laying off is possible in the Fall, Winter or Spring. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall Relevant costs are hiring, $100 for each temp; layoff, $200 for each worker laid off, inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. (Round up "Number of temp workers" to the next whole number and all other answers to the nearest whole number. Negative values should be indicated by a minus sign. Leave no cells blank be certain to enter "O" wherever required.) not possible to hire any additional workers until next Summer, at which Fall Winter Spring Summer Forecast Beginning inventory Production required Production hours required Production hours available Overtime hours Temp workers Temp worker hours available Total hours available Actual production Ending inventory Workers hired Workers laid off 10,000 500 8,000 2300 7,000 12,000 200 20 20 Fall Winter Spring Summer Straight time Overtime Inventory Backorder Hiring Layoff Total Annual costExplanation / Answer
Used formulae:
Fall Winter Spring Summer Forecast 10000 8000 7000 12000 Beginning Inv 500 0 0 200 Prod Req 9500 10300 7000 11800 Hours per unit 2 Prod Hour Req 19000 20600 14000 23600 8 60 30 Prod Hour Available 14400 14400 14400 14400 Daily Hours Days avail Starting Workforce Overtime hours 0 6200 0 0 Temp workers 0 0 0 20 Temp workers hours Available 0 0 0 9600 Total hours Available 14400 20600 14400 24000 Total req OT req Actual prod 7200 10300 7200 12000 23600 9200 Ending Inv 0 0 200 200 19.16667 Workers Hired 0 0 0 20 20 OT work force Workerd Laid off 0 0 0 20 Back order 2300 0 0 0 5 Strait time 72000 72000 72000 72000 8 Overtime 0 49600 0 0 5 Inventory 0 0 1000 1000 10 Back order 23000 0 0 0 100 Hiring 0 0 0 2000 200 lay off 0 0 0 4000 Total 95000 121600 73000 79000 Annual cost 368600Related Questions
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