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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 950, 1,510, 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 550 units. Manufacturing cost is $270 per unit, storage cost is $4 per unit per month, standard pay rate is $7 per hour, overtime rate is $11 per hour, cost of stockout is $11 per unit per month, hiring and training cost is $190 per worker, layoff cost is $290 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 40 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 variables to nearest whole number.) January February March 950 Forecast Safety stock 1,510 755 1,220 610 755 Ⓡ Beginning inventory 475 Net production required 1790 Workers required 118 Hired 68 Laid off Actual production Ending inventory Labor Inventory Hiring Layoff Total January $ 61600 1900 0 $ 10 >> 0 475 550 875 50 Ⓒ 10 0 875 475 February $ 125,552 12920 $ 00 1790 755 10 Ⓡ 00 Total 1075 64 0 54 1075 610 March $ 75,264 O 10 >> 00 15660 O $ $

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 950, 1,510, 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 550 units. Manufacturing cost is $270 per unit, storage cost is $4 per unit per month, standard pay rate is $7 per hour, overtime rate is $11 per hour, cost of stockout is $11 per unit per month, hiring and training cost is $190 per worker, layoff cost is $290 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 40 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 variables to nearest whole number.) January February March 950 Forecast Safety stock 1,510 755 1,220 610 755 Ⓡ Beginning inventory 475 Net production required 1790 Workers required 118 Hired 68 Laid off Actual production Ending inventory Labor Inventory Hiring Layoff Total January $ 61600 1900 0 $ 10 >> 0 475 550 875 50 Ⓒ 10 0 875 475 February $ 125,552 12920 $ 00 1790 755 10 Ⓡ 00 Total 1075 64 0 54 1075 610 March $ 75,264 O 10 >> 00 15660 O $ $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 8-14 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 950, 1,510, 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 550 units. Manufacturing cost is $270 per unit, storage cost is $4 per unit per month, standard pay rate is $7 per hour, overtime rate is $11 per hour, cost of stockout is $11 per unit per month, hiring and training cost is $190 per worker, layoff cost is $290 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 40 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 variables to nearest whole number.) January February March 950 1,220 Forecast Safety stock 1,510 755 Beginning inventory 475 Net production required 1790 Workers required 118 Hired 68 Laid off Actual production Ending inventory Labor Inventory Hiring Layoff Total January $ 61600 1900 0 $ 10 >> 475 550 875 50 Ⓒ 10 0 875 475 February $ 125,552 12920 0 $ 0 1790 O 755 10 > Total 610 755 1075 $ $ 64 Ⓒ 0 54 1075 → 610 > March $ 75,264 O 10 Ⓡ 0 15660
Transcribed Image Text:Problem 8-14 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 950, 1,510, 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 550 units. Manufacturing cost is $270 per unit, storage cost is $4 per unit per month, standard pay rate is $7 per hour, overtime rate is $11 per hour, cost of stockout is $11 per unit per month, hiring and training cost is $190 per worker, layoff cost is $290 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 40 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 variables to nearest whole number.) January February March 950 1,220 Forecast Safety stock 1,510 755 Beginning inventory 475 Net production required 1790 Workers required 118 Hired 68 Laid off Actual production Ending inventory Labor Inventory Hiring Layoff Total January $ 61600 1900 0 $ 10 >> 475 550 875 50 Ⓒ 10 0 875 475 February $ 125,552 12920 0 $ 0 1790 O 755 10 > Total 610 755 1075 $ $ 64 Ⓒ 0 54 1075 → 610 > March $ 75,264 O 10 Ⓡ 0 15660
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