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Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring. 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring. $100 for each temp: layoff, $200 for each worker laid off, Inventory holding. $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour, overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quarter, produce to the full output of your regular workforce, even if that results in excess production. In Winter and Spring, use overtime only if needed to meet the production required in that quarter. Do not use overtime to build excess Inventory In prior seasons expressly for the purpose of reducing the number of temp workers in Summer. (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be Indicated by a minus sign. Round up "Number of temp workers, Workers hired and Workers lald off" to the next whole number and all other answers to the nearest whole number.) Forecast Beginning inventory Production required Production hours required Production hours available Overtime hours Temp workers Temp worker hours available Total hours available Actual production Ending inventory Workers hired Workers laid off Straight time Overtime Inventory Backorder Hiring Layoff Total Annual cost Fall Winter Fall 10,000 Spring Winter 8,000 Summer Spring Summer 7,000 12,000

Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring. 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring. $100 for each temp: layoff, $200 for each worker laid off, Inventory holding. $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour, overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quarter, produce to the full output of your regular workforce, even if that results in excess production. In Winter and Spring, use overtime only if needed to meet the production required in that quarter. Do not use overtime to build excess Inventory In prior seasons expressly for the purpose of reducing the number of temp workers in Summer. (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be Indicated by a minus sign. Round up "Number of temp workers, Workers hired and Workers lald off" to the next whole number and all other answers to the nearest whole number.) Forecast Beginning inventory Production required Production hours required Production hours available Overtime hours Temp workers Temp worker hours available Total hours available Actual production Ending inventory Workers hired Workers laid off Straight time Overtime Inventory Backorder Hiring Layoff Total Annual cost Fall Winter Fall 10,000 Spring Winter 8,000 Summer Spring Summer 7,000 12,000

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Ch. 19 Q7
y Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7.000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $100 for each temp; layoff, $200 for each worker laid off, Inventory holding. $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour, overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quarter, produce to the full output of your regular workforce, even if that results in excess production. In Winter and Spring, use overtime only if needed to meet the production required in that quarter. Do not use overtime to build excess Inventory In prior seasons expressly for the purpose of reducing the number of temp workers In Summer. (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be Indicated by a minus sign. Round up "Number of temp workers, Workers hired and Workers laid off" to the next whole number and all other answers to the nearest whole number.) Forecast Beginning inventory Production required Production hours required Production hours available Overtime hours Temp workers Temp worker hours available Total hours available Actual production Ending inventory Workers hired Workers laid off Straight time Overtime Inventory Backorder Hiring Layoff Total Annual cost Fall Fall Winter Spring Summer 12,000 10,000 8,000 7,000 m Winter Spring Summer Q Search < Prev 7 of 14 www ly Next
Transcribed Image Text:y Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7.000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $100 for each temp; layoff, $200 for each worker laid off, Inventory holding. $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour, overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quarter, produce to the full output of your regular workforce, even if that results in excess production. In Winter and Spring, use overtime only if needed to meet the production required in that quarter. Do not use overtime to build excess Inventory In prior seasons expressly for the purpose of reducing the number of temp workers In Summer. (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be Indicated by a minus sign. Round up "Number of temp workers, Workers hired and Workers laid off" to the next whole number and all other answers to the nearest whole number.) Forecast Beginning inventory Production required Production hours required Production hours available Overtime hours Temp workers Temp worker hours available Total hours available Actual production Ending inventory Workers hired Workers laid off Straight time Overtime Inventory Backorder Hiring Layoff Total Annual cost Fall Fall Winter Spring Summer 12,000 10,000 8,000 7,000 m Winter Spring Summer Q Search < Prev 7 of 14 www ly Next
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