(a) Assuming that shortages are not allowed, determine the minimum constant workforce that he will need over the next five years. (b) Evaluate the cost of the plan found in (a). (c) Develop a linear-programming model for the least-cost production plan.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Harold Grey owns a small farm that grows apricots in the Salinas Valley. The apricots
are dried on the premises and then sold to a number of large supermarket chains. Based
on past experience and committed contracts, he estimates that the sales over the next five
years in thousands of packages will be as follows:
Year
(thousands of packages)
1 300
2 120
3 180
4 100
5 250
Grey currently has three workers on the payroll. Assume that each worker stays on the
job for at least one year. He estimates that he will have 10,000 packages on hand at the
end of current year. Assume that, on the average, each worker is paid $25,000 per year and
is responsible for producing 30,000 packages. Inventory costs have been estimated to be 4
cents per package per year, and shortages are not allowed.
Based on the effort of interviewing and training new workers, Grey estimates that it costs
$500 for each worker hired. Severance pay amounts to $1,000 per worker.
(a) Assuming that shortages are not allowed, determine the minimum constant workforce
that he will need over the next five years.
(b) Evaluate the cost of the plan found in (a).
(c) Develop a linear-programming model for the least-cost production plan.
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