5. Formulate a level sales and operations plan for a company with the following predicted demand: Month Demand 1 2 6,300 9,000 3 6,000 5 6 Total 9,000 15,000 6,000 51,300 The beginning workforce is 125 employees. The monthly output per employee is 150 units. The costs to hire and lay off a worker are $2,500 and $4,000, respectively. The cost to carry an item in inventory for one month is estimated at $10, and the stockout cost is $25 per unit. Show the production schedule, the inventory levels, and the changes in workforce from period to period. Compute the plan's cost.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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5. Formulate a level sales and operations plan for a company with the following
predicted demand:
Month
Demand
6,300
2
9,000
3
6,000
4
9,000
5
15,000
6
6,000
Total
51,300
The beginning workforce is 125 employees. The monthly output per employee is
150 units. The costs to hire and lay off a worker are $2,500 and $4,000, respectively.
The cost to carry an item in inventory for one month is estimated at $10, and the
stockout cost is $25 per unit. Show the production schedule, the inventory levels,
and the changes in workforce from period to period. Compute the plan's cost.
Transcribed Image Text:5. Formulate a level sales and operations plan for a company with the following predicted demand: Month Demand 6,300 2 9,000 3 6,000 4 9,000 5 15,000 6 6,000 Total 51,300 The beginning workforce is 125 employees. The monthly output per employee is 150 units. The costs to hire and lay off a worker are $2,500 and $4,000, respectively. The cost to carry an item in inventory for one month is estimated at $10, and the stockout cost is $25 per unit. Show the production schedule, the inventory levels, and the changes in workforce from period to period. Compute the plan's cost.
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