1. A maintenance manager is attempting to plan the maintenance workload for the coming nine months. He has obtained a forecast of expected maintenance demand for the planning horizon. The plan must deal with highly seasonal demand; demand is relatively high in periods 3 and 4, and again in period 8, as can be seen from the following forecasts. Period 1 2 3 4 5 6 Forecast 190 230 260 280 210 170 7 8 9 160 260 180 The department now has 22 full-time employees, each of whom maintains 10 units per period at a cost of $6 per unit. There is no carryover work at the start of the first period. Backlog cost is $10 per unit per period. a. Will the current workforce be able to handle the forecast demand? b. Determine the total cost of the plan.

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Chapter19: Pricing Concepts
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1. A maintenance manager is attempting to plan the maintenance workload for the coming nine months. He
has obtained a forecast of expected maintenance demand for the planning horizon. The plan must deal
with highly seasonal demand; demand is relatively high in periods 3 and 4, and again in period 8, as can
be seen from the following forecasts.
Period
1 2 3 4 5 6
Forecast 190 230 260 280 210 170
7
8
9
160 260
180
The department now has 22 full-time employees, each of whom maintains 10 units per period at a cost of
$6 per unit. There is no carryover work at the start of the first period. Backlog cost is $10 per unit per
period.
a. Will the current workforce be able to handle the forecast demand?
b. Determine the total cost of the plan.
Transcribed Image Text:1. A maintenance manager is attempting to plan the maintenance workload for the coming nine months. He has obtained a forecast of expected maintenance demand for the planning horizon. The plan must deal with highly seasonal demand; demand is relatively high in periods 3 and 4, and again in period 8, as can be seen from the following forecasts. Period 1 2 3 4 5 6 Forecast 190 230 260 280 210 170 7 8 9 160 260 180 The department now has 22 full-time employees, each of whom maintains 10 units per period at a cost of $6 per unit. There is no carryover work at the start of the first period. Backlog cost is $10 per unit per period. a. Will the current workforce be able to handle the forecast demand? b. Determine the total cost of the plan.
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