he KrazySockz Company is known for their colorful yet comfortable socks. They have forecasted their demand for the next six months as follows: Month 1 demand is 30,000, month 2 demand is 50,000, month 3 demand is 20,000, month 4 demand is 10,000, month 5 demand is 15,000 and month 6 demand is
he KrazySockz Company is known for their colorful yet comfortable socks. They have forecasted their demand for the next six months as follows: Month 1 demand is 30,000, month 2 demand is 50,000, month 3 demand is 20,000, month 4 demand is 10,000, month 5 demand is 15,000 and month 6 demand is
Practical Management Science
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Publisher:WINSTON, Wayne L.
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KrazySockz
The KrazySockz Company is known for their colorful yet
comfortable socks. They haveforecasted their demand for the next
six months as follows: Month 1 demand is 30,000, month 2
demand is 50,000, month 3 demand is 20,000, month 4 demand is
10,000, month 5 demand is 15,000 and month 6 demand is 20,000.
At the beginning of month 1 they have 15,000 pairs of socks on
hand. KrazySockz currently has 40 production employees. Each production
employee costs the company the company $4,000 per month ($3,200 salary and $800
in other costs) per month. Production employees can work up to 160 hours per
month before they must be paid overtime. Overtime is paid at a rate of $30 per hour
and production employees can not work more than 30 hours per month overtime. It
takes 15 minutes of labor and $0.75 of raw material to produce a pair of socks.
KrazySockz can hire or fire employees each month. Hiring a production employee
incurs a cost of $3,500 and firing a production employee costs $4,500. At the end of
each month, a holding cost of $0.35 per pair of socks left in inventory is incurred.
KrazySockz must meet demand each month (no backordering is allowed). What is
the optimal production and HR policy (i.e., hiring/firing) for KrazySockz?
The KrazySockz Company is known for their colorful yet
comfortable socks. They have
six months as follows: Month 1 demand is 30,000, month 2
demand is 50,000, month 3 demand is 20,000, month 4 demand is
10,000, month 5 demand is 15,000 and month 6 demand is 20,000.
At the beginning of month 1 they have 15,000 pairs of socks on
hand. KrazySockz currently has 40 production employees. Each production
employee costs the company the company $4,000 per month ($3,200 salary and $800
in other costs) per month. Production employees can work up to 160 hours per
month before they must be paid overtime. Overtime is paid at a rate of $30 per hour
and production employees can not work more than 30 hours per month overtime. It
takes 15 minutes of labor and $0.75 of raw material to produce a pair of socks.
KrazySockz can hire or fire employees each month. Hiring a production employee
incurs a cost of $3,500 and firing a production employee costs $4,500. At the end of
each month, a holding cost of $0.35 per pair of socks left in inventory is incurred.
KrazySockz must meet demand each month (no backordering is allowed). What is
the optimal production and HR policy (i.e., hiring/firing) for KrazySockz?
Solution needs to be on excel
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