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 930, 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 550 units. Manufacturing cost is $190 per unit, storage cost is $6 per unit per month, standard pay rate is $4 per hour, overtime rate is $6 per hour, cost of stockout is $9 per unit per month, hiring and training cost is $280 per worker, layoff cost is $380 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 47 workers and that they work 8 hours per day. (Round Workers Required up to the next higher whole number. Round all other variables off to the nearest whole number. Use previous rounded answers as required to compute subsequent answers. Input all values as positive values. Leave no cells blank - be certain to enter "0" wherever required.) January February March Forecast 930 1,550 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

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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Finance

Problem 8-9

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 930, 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 550 units.

Manufacturing cost is $190 per unit, storage cost is $6 per unit per month, standard pay rate is $4 per hour, overtime rate is $6 per hour, cost of stockout is $9 per unit per month, hiring and training cost is $280 per worker, layoff cost is $380 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 47 workers and that they work 8 hours per day. (Round Workers Required up to the next higher whole number. Round all other variables off to the nearest whole number. Use previous rounded answers as required to compute subsequent answers. Input all values as positive values. Leave no cells blank - be certain to enter "0" wherever required.)

	January	February	March
Forecast	930	1,550	1,220
Safety stock
Beginning inventory
Net production required
Workers required
Hired
Laid off
Actual production
Ending inventory