13. The Bi-Product Company produces two products (A and B) that are similar in terms of labor con- tent and skills required. Company management wishes to "level" the number of employees needed each day so no hiring or layoffs will be required during the year. A complication to this problem is that the number of working days in each quarter varies. Demand Quarter Product A Product B Working Days 1 9,800 14,500 2 12,000 30,000 3 14,000 19,500 4 31,000 25,000 3223 68 56 62 58 Beginning inventory: 2,400 units of Product A 900 units of Product B Inventory holding cost: $10 per unit per quarter (either product) No back orders allowed No variations in size of workforce allowed Output rate=25 units of either product per day per employee a. What daily production rate will be required to meet the demand forecast and yield zero in- ventory at the end of quarter 4? b. How many employees will be required each day? What are the inventory levels each quarter?
13. The Bi-Product Company produces two products (A and B) that are similar in terms of labor con- tent and skills required. Company management wishes to "level" the number of employees needed each day so no hiring or layoffs will be required during the year. A complication to this problem is that the number of working days in each quarter varies. Demand Quarter Product A Product B Working Days 1 9,800 14,500 2 12,000 30,000 3 14,000 19,500 4 31,000 25,000 3223 68 56 62 58 Beginning inventory: 2,400 units of Product A 900 units of Product B Inventory holding cost: $10 per unit per quarter (either product) No back orders allowed No variations in size of workforce allowed Output rate=25 units of either product per day per employee a. What daily production rate will be required to meet the demand forecast and yield zero in- ventory at the end of quarter 4? b. How many employees will be required each day? What are the inventory levels each quarter?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Question

Transcribed Image Text:13. The Bi-Product Company produces two products (A and B) that are similar in terms of labor con-
tent and skills required. Company management wishes to "level" the number of employees
needed each day so no hiring or layoffs will be required during the year. A complication to this
problem is that the number of working days in each quarter varies.
Demand
Quarter
Product A
Product B
Working Days
1
9,800
14,500
68
2
12,000
30,000
56
3
14,000
19,500
62
4
31,000
25,000
58
Beginning inventory: 2,400 units of Product A
900 units of Product B
Inventory holding cost: $10 per unit per quarter (either product)
No back orders allowed
No variations in size of workforce allowed
Output rate=25 units of either product per day per employee
a. What daily production rate will be required to meet the demand forecast and yield zero in-
ventory at the end of quarter 4?
b. How many employees will be required each day? What are the inventory levels each quarter?
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