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Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. The monthly forecasts for Product X for January, February, and March are 1,020, 1,550, and 1,220, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 560 units. Manufacturing cost is $200 per unit, storage cost is $3 per unit per month, standard pay rate is $8 per hour, overtime rate is $12 per hour, cost of stockout is $10 per unit per month, hiring and training cost is $220 per worker, layoff cost is $320 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 42 workers and that they work 8 hours per day. (Leave no cells blank - be certain to enter "0" wherever required. Input all values as positive values. Round Workers Required up to next higher whole number. Round all other variable to nearest whole number.) February 1.550 March January 1.020 Forecast 1.220 Safety stock Beginning inventory Net production required Workers required Hired Laid off Actual production Ending inventory January February March Labor Inventory Hiring Layoff Total Total

Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. The monthly forecasts for Product X for January, February, and March are 1,020, 1,550, and 1,220, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 560 units. Manufacturing cost is $200 per unit, storage cost is $3 per unit per month, standard pay rate is $8 per hour, overtime rate is $12 per hour, cost of stockout is $10 per unit per month, hiring and training cost is $220 per worker, layoff cost is $320 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 42 workers and that they work 8 hours per day. (Leave no cells blank - be certain to enter "0" wherever required. Input all values as positive values. Round Workers Required up to next higher whole number. Round all other variable to nearest whole number.) February 1.550 March January 1.020 Forecast 1.220 Safety stock Beginning inventory Net production required Workers required Hired Laid off Actual production Ending inventory January February March Labor Inventory Hiring Layoff Total Total

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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**Production Schedule Development for Product X** **Objective:** Create a production schedule to meet exact production requirements by adjusting the workforce size based on forecasts. **Monthly Forecasts:** - January: 1,020 units - February: 1,550 units - March: 1,220 units **Safety Stock Policy:** Safety stock is defined as half of each month's forecast. **Working Days:** - January: 22 days - February: 19 days - March: 21 days **Initial Inventory:** - Beginning inventory: 560 units **Cost Details:** - Manufacturing cost: $200 per unit - Storage cost: $3 per unit per month - Standard pay rate: $8 per hour - Overtime rate: $12 per hour - Stockout cost: $10 per unit per month - Hiring and training cost: $220 per worker - Layoff cost: $320 per worker - Worker productivity: 0.1 unit per hour - Initial workforce: 42 workers - Working hours: 8 hours per day **Instructions:** - Fill in all cells, using "0" where necessary. - Input values as positive numbers. - Round Workforce Required up to the nearest whole number. - Round other variables to the nearest whole number. **Tables:** 1. **Production Requirements Table:** - Includes sections for: - Safety stock - Beginning inventory - Net production required - Workers required - Hired - Laid off - Actual production - Ending inventory 2. **Cost Breakdown Table:** - Includes sections for: - Labor - Inventory - Hiring - Layoff - Total cost for each month (January, February, March) and overall total. This setup guides creating a dynamic and cost-effective production schedule by carefully balancing labor, storage, and production costs while managing inventory effectively.
Transcribed Image Text:**Production Schedule Development for Product X** **Objective:** Create a production schedule to meet exact production requirements by adjusting the workforce size based on forecasts. **Monthly Forecasts:** - January: 1,020 units - February: 1,550 units - March: 1,220 units **Safety Stock Policy:** Safety stock is defined as half of each month's forecast. **Working Days:** - January: 22 days - February: 19 days - March: 21 days **Initial Inventory:** - Beginning inventory: 560 units **Cost Details:** - Manufacturing cost: $200 per unit - Storage cost: $3 per unit per month - Standard pay rate: $8 per hour - Overtime rate: $12 per hour - Stockout cost: $10 per unit per month - Hiring and training cost: $220 per worker - Layoff cost: $320 per worker - Worker productivity: 0.1 unit per hour - Initial workforce: 42 workers - Working hours: 8 hours per day **Instructions:** - Fill in all cells, using "0" where necessary. - Input values as positive numbers. - Round Workforce Required up to the nearest whole number. - Round other variables to the nearest whole number. **Tables:** 1. **Production Requirements Table:** - Includes sections for: - Safety stock - Beginning inventory - Net production required - Workers required - Hired - Laid off - Actual production - Ending inventory 2. **Cost Breakdown Table:** - Includes sections for: - Labor - Inventory - Hiring - Layoff - Total cost for each month (January, February, March) and overall total. This setup guides creating a dynamic and cost-effective production schedule by carefully balancing labor, storage, and production costs while managing inventory effectively.
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