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 1,010, 1,540, and 1,180, 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 530 units. Manufacturing cost is $180 per unit, storage cost is $6 per unit per month, standard pay rate is $6 per hour, overtime rate is $9 per hour, cost of stock-out is $9 per unit per month, marginal cost of subcontracting is $10 per unit, hiring and training cost is $210 per worker, layoff cost is $310 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 da
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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 1,010, 1,540, and 1,180, respectively. Safety stock policy recommends that half of the
Manufacturing cost is $180 per unit, storage cost is $6 per unit per month, standard pay rate is $6 per hour, overtime rate is $9 per hour, cost of stock-out is $9 per unit per month, marginal cost of subcontracting is $10 per unit, hiring and training cost is $210 per worker, layoff cost is $310 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 da
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