Formulate a chase sales and operations plan for a company with the following predicted​ demand:                                                                                                                                                                                                                                                                                                                                                                                                                             Month 1 2 3 4 5 6 Total Demand 55,200 49,600 12,800 24,800 50,400 25,600 218,400   The beginning workforce is 160 employees. The monthly output per employee is 400 units. The cost to hire and lay off a worker are ​$2,500 and ​$3,500​, respectively. The cost to carry an item in inventory for one month is estimated at ​$14, and the stockout cost is $25 per unit. Show the production schedule, the inventory​ levels, and the changes in the workforce from period to period. Compute the​ plan's cost.   Construct the chase sales and operations plan ​(enter your responses as whole numbers​).   Month 1 2 3 4 5 6 Total Demand 55,200 49,600 12,800 24,800 50,400 25,600 218,400 Production

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...
icon
Related questions
Question
Formulate a chase sales and operations plan for a company with the following predicted​ demand:
                                                                                                                                                                                                                                                                                                                                                                                                                           
Month
1
2
3
4
5
6
Total
Demand
55,200
49,600
12,800
24,800
50,400
25,600
218,400
 
The beginning workforce is 160 employees. The monthly output per employee is 400 units. The cost to hire and lay off a worker are ​$2,500 and ​$3,500​, respectively. The cost to carry an item in inventory for one month is estimated at ​$14, and the stockout cost is $25 per unit. Show the production schedule, the inventory​ levels, and the changes in the workforce from period to period. Compute the​ plan's cost.
 
Construct the chase sales and operations plan ​(enter your responses as whole numbers​).
 
Month
1
2
3
4
5
6
Total
Demand
55,200
49,600
12,800
24,800
50,400
25,600
218,400
Production
             
Expert Solution
steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
### Sales and Operations Planning

**Objective:**  
Formulate a chase sales and operations plan for a company based on predicted demand.

**Predicted Demand:**
- **Month 1:** 55,200 units
- **Month 2:** 49,600 units
- **Month 3:** 12,800 units
- **Month 4:** 24,800 units
- **Month 5:** 50,400 units
- **Month 6:** 25,600 units
- **Total Demand:** 218,400 units

**Initial Workforce and Costs:**
- Beginning workforce: 160 employees
- Monthly output per employee: 400 units
- Cost to hire a worker: $2,500
- Cost to lay off a worker: $3,500
- Inventory carrying cost per item per month: $14
- Stockout cost per unit: $25

**Tasks:**
- Develop a production schedule.
- Determine inventory levels.
- Calculate workforce changes between periods.
- Compute the total cost of the plan.

**Plan Construction:**

| **Month** | **1**  | **2**  | **3**  | **4**  | **5**  | **6**  | **Total** |
|-----------|--------|--------|--------|--------|--------|--------|-----------|
| **Demand**    | 55,200 | 49,600 | 12,800 | 24,800 | 50,400 | 25,600 | 218,400   |
| **Production**| [  ]   | [  ]   | [  ]   | [  ]   | [  ]   | [  ]   | [   ]     |

*Please enter production numbers as whole numbers.*

This exercise is designed to help you understand the process of creating a chase strategy to meet fluctuating demand while managing production costs, inventory, and workforce levels effectively.
Transcribed Image Text:### Sales and Operations Planning **Objective:** Formulate a chase sales and operations plan for a company based on predicted demand. **Predicted Demand:** - **Month 1:** 55,200 units - **Month 2:** 49,600 units - **Month 3:** 12,800 units - **Month 4:** 24,800 units - **Month 5:** 50,400 units - **Month 6:** 25,600 units - **Total Demand:** 218,400 units **Initial Workforce and Costs:** - Beginning workforce: 160 employees - Monthly output per employee: 400 units - Cost to hire a worker: $2,500 - Cost to lay off a worker: $3,500 - Inventory carrying cost per item per month: $14 - Stockout cost per unit: $25 **Tasks:** - Develop a production schedule. - Determine inventory levels. - Calculate workforce changes between periods. - Compute the total cost of the plan. **Plan Construction:** | **Month** | **1** | **2** | **3** | **4** | **5** | **6** | **Total** | |-----------|--------|--------|--------|--------|--------|--------|-----------| | **Demand** | 55,200 | 49,600 | 12,800 | 24,800 | 50,400 | 25,600 | 218,400 | | **Production**| [ ] | [ ] | [ ] | [ ] | [ ] | [ ] | [ ] | *Please enter production numbers as whole numbers.* This exercise is designed to help you understand the process of creating a chase strategy to meet fluctuating demand while managing production costs, inventory, and workforce levels effectively.
Solution
Bartleby Expert
SEE SOLUTION
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.