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Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan f

ID: 372507 • 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 S8/disk drive/Month S80/disk drive Other Data Holding cost Subcontracting Regular-time labor $12/hour Overtime labor Hiring cost Layoff costS80/workerNote that there is no holding cost for June Current workforce (June) Labor-hours/disk drive Workdays/month 8 people 4 hours 20 days 18/hour (above 8 hours) Beginning Inventory 150 disk drives* $40/worker Ending Invento 0 disk drives What will the following strategy cost? This exercise only contains b) Vary overtime only and use a constant workforce of eight. Fill in the table below. (Enter all responses as whole numbers.) part b. Plan B Ending Overtime Month Demand Production (Regular)Inventory Production 0 June 1 July 150 400 320 2 August 500 320

Explanation / Answer

We are given 8 workers and interested in varying overtime hours only.

Month Demand Regular Overtime Ending Inv. Overtime Ending Inv. June 150 July 400 320 0 70 0 560 August 500 320 110 0 7920 0 September 550 320 230 0 16560 0 October 700 320 380 0 27360 0 November 800 320 480 0 34560 0 December 700 320 380 0 27360 0 Total 113760 560
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