Please show all working, thanks. A company believes that its demand for the next

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Please show all working, thanks.

A company believes that its demand for the next six months is as follows 6 Total Month Demand 8,500 7,0009,000 7,000 9,500 13,000 54,000 The output per worker per month is 125 units. The per worker hiring and lay off costs are $2,500 and $3,500, respectively. There is no beginning inventory, and the starting workforce is 105. It cost the company $10 to carry an item in inventory each month, and the stockout costs is estimated to be $25 per unit. Develop a level sales and operations plan for this firm. Develop the monthly production schedule and show the labor workforce and inventory levels. Finally, compute the cost of the plan. Construct the production table. Note that a negative beginning inventory denotes a stockout that is carried forward (enter your responses as whole numbers) Beginning Production Invent Ending Stockouts Month Demand 8,500

Explanation / Answer

Total Cost of Plan Month 1 2 3 4 5 6 Total Forecast 8500 7,000 9,000 7,000 9,500 13,000 54000 Beginning Inventory 0 500 2,500 2,500 4,500 4,000 Regular workforce required (Production Required /(125) 72 72 72 72 72 72 Regular Production (Workforce *125) 9000 9000 9000 9000 9000 9000 54000 Workers hired 0 0 0 0 0 0 Workers laid-off (Initial workers = 105) 33 0 0 0 0 0 Ending Inventory 500 2,500 2,500 4,500 4,000 0 Ending Backorders 0 0 0 0 0 0 Cost: Inventory holding cost ($10/unit per month) $5,000 $25,000 $25,000 $45,000 $40,000 $0 Backorder cost ($25/ unit) $0 $0 $0 $0 $0 $0 Hiring cost ($2500) $0 $0 $0 $0 $0 $0 Layoff cost ($3500) $115,500 $0 $0 $0 $0 $0 Total Cost (Per Month) $120,500 $25,000 $25,000 $45,000 $40,000 $0 $255,500

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