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Given the demand forecast, cost, and operating data shown below; evaluate the following production plans. $100 $110 $12 $18 Manufacturing cost per unit Subcontracting cost per unit Regular hourly wage rate Overtime hourly wage rate Regular hours per day per worker Labor hours per unit Layoff cost per worker Hiring cost per worker Inventory holding cost per unit per month Initial workforce $500 $400 $2 250 Month Demand Working days 22 January February March 11,000 15,000 19 32,000 21 April May June 25,000 21 30,000 22 14.500 a) Produce to meet demand by varying the size of the workforce. Satisfy demand for part-time work with overtime. Find the total cost. Workers Workers Fired Hr Available Worker (days×8 hr). (22×8)=176 (44000/176)=250 Hours Workers Needed Month Demand Req. Hired Jan. 11,000 (11000x4)=44,000 Feb. 15,000 60,000 152 394 March 32,000 128,000 Apnil May June 25,000 30,000 14.500 127,500 597 485 Regular Hours ADailable 44,000 59,888 127,848 99,960 119,856 57.920 509,472 Total cost = Total regular hour cost + Overtime cost + production cost + Hiring cost + Firing costs Hours Required Orertime Hours 44,000 60,000 128,000 100,000 120,000 58,000 112 152 40 144 80 528

Given the demand forecast, cost, and operating data shown below; evaluate the following production plans. $100 $110 $12 $18 Manufacturing cost per unit Subcontracting cost per unit Regular hourly wage rate Overtime hourly wage rate Regular hours per day per worker Labor hours per unit Layoff cost per worker Hiring cost per worker Inventory holding cost per unit per month Initial workforce $500 $400 $2 250 Month Demand Working days 22 January February March 11,000 15,000 19 32,000 21 April May June 25,000 21 30,000 22 14.500 a) Produce to meet demand by varying the size of the workforce. Satisfy demand for part-time work with overtime. Find the total cost. Workers Workers Fired Hr Available Worker (days×8 hr). (22×8)=176 (44000/176)=250 Hours Workers Needed Month Demand Req. Hired Jan. 11,000 (11000x4)=44,000 Feb. 15,000 60,000 152 394 March 32,000 128,000 Apnil May June 25,000 30,000 14.500 127,500 597 485 Regular Hours ADailable 44,000 59,888 127,848 99,960 119,856 57.920 509,472 Total cost = Total regular hour cost + Overtime cost + production cost + Hiring cost + Firing costs Hours Required Orertime Hours 44,000 60,000 128,000 100,000 120,000 58,000 112 152 40 144 80 528

Practical Management Science
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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Given the demand forecast, cost, and operating data shown below; evaluate the following production plans. $100 $110 $12 $18 Manufacturing cost per unit Subcontracting cost per unit Regular hourly wage rate Overtime hourly wage rate Regular hours per day per worker Labor hours per unit Layoff cost per worker Hiring cost per worker Inventory holding cost per unit per month Initial workforce 8 $500 $400 $2 250 Month Demand Working days 22 January February 11,000 15,000 19 March 32,000 21 21 April Мay June 25,000 30,000 14.500 a) Produce to meet demand by varying the size of the workforce. Satisfy demand for part-time work with overtime. Find the total cost. Workers Workers Fired Hr Available /Worker days×8 hr) (22x8)=176 | (44000/176)=250 Hours Workers Needed Month Demand Req. Hired Jan. 11,000 15,000 (11000×4)=44,000 60,000 Feb. 152 394 32,000 25,000 March 128,000 April May June 30,000 14.500 127,500 597 485 Hours Required Regular Hours azailable 44,000 59,888 127,848 99,960 119,856 57.920 509,472 Total cost = Total regular hour cost + Overtime cost + production cost + Hiring cost + Firing costs Orertime Hours 44,000 60,000 128,000 112 152 100,000 40 120,000 58,000 144 80 528
Transcribed Image Text:Given the demand forecast, cost, and operating data shown below; evaluate the following production plans. $100 $110 $12 $18 Manufacturing cost per unit Subcontracting cost per unit Regular hourly wage rate Overtime hourly wage rate Regular hours per day per worker Labor hours per unit Layoff cost per worker Hiring cost per worker Inventory holding cost per unit per month Initial workforce 8 $500 $400 $2 250 Month Demand Working days 22 January February 11,000 15,000 19 March 32,000 21 21 April Мay June 25,000 30,000 14.500 a) Produce to meet demand by varying the size of the workforce. Satisfy demand for part-time work with overtime. Find the total cost. Workers Workers Fired Hr Available /Worker days×8 hr) (22x8)=176 | (44000/176)=250 Hours Workers Needed Month Demand Req. Hired Jan. 11,000 15,000 (11000×4)=44,000 60,000 Feb. 152 394 32,000 25,000 March 128,000 April May June 30,000 14.500 127,500 597 485 Hours Required Regular Hours azailable 44,000 59,888 127,848 99,960 119,856 57.920 509,472 Total cost = Total regular hour cost + Overtime cost + production cost + Hiring cost + Firing costs Orertime Hours 44,000 60,000 128,000 112 152 100,000 40 120,000 58,000 144 80 528
b) Produce with a fixed workforce of 500. Subcontract excess demand. Find the total cost. 500 workers available, total available hour in January is 176 * 500 = 88,000 4 hours required to produce one item, Total production in January: 88,000/4 = 22,000 units Month Demand Hrs./Worker Inventory Worker Hr 500 * (Av hr) (176×500) = 88000 76000 Production Subcontracted 11,000 15,000 (units) 22,000 19,000 176 Jan. Feb. March 11,000 152 32,000 168 April May 25,000 168 30,000 14,500 127,500 176 8000 June 160 5500 8,000 Total cost = Total production cost + Inventory cost + Subcontract costs c) Produce with a fixed workforce of 400. Subcontract excess demand. Find the total cost. 400 workers available, total available hour in January is 176 * 400 = 70,400 Montb Demand Hrs./Worker Worker Hr Production Insentory Subcontracted 400 * (Av hr) (176×400) = 70,400 Jan. Feb. 11,000 176 17,600 15,200 6,600 15,000 152 March 32,000 168 8,400 Аprl Мay June 25,000 168 30,000 176 14,500 160 127.500 14,900 Total cost = Total production cost + Inventory cost + Subcontract costs
Transcribed Image Text:b) Produce with a fixed workforce of 500. Subcontract excess demand. Find the total cost. 500 workers available, total available hour in January is 176 * 500 = 88,000 4 hours required to produce one item, Total production in January: 88,000/4 = 22,000 units Month Demand Hrs./Worker Inventory Worker Hr 500 * (Av hr) (176×500) = 88000 76000 Production Subcontracted 11,000 15,000 (units) 22,000 19,000 176 Jan. Feb. March 11,000 152 32,000 168 April May 25,000 168 30,000 14,500 127,500 176 8000 June 160 5500 8,000 Total cost = Total production cost + Inventory cost + Subcontract costs c) Produce with a fixed workforce of 400. Subcontract excess demand. Find the total cost. 400 workers available, total available hour in January is 176 * 400 = 70,400 Montb Demand Hrs./Worker Worker Hr Production Insentory Subcontracted 400 * (Av hr) (176×400) = 70,400 Jan. Feb. 11,000 176 17,600 15,200 6,600 15,000 152 March 32,000 168 8,400 Аprl Мay June 25,000 168 30,000 176 14,500 160 127.500 14,900 Total cost = Total production cost + Inventory cost + Subcontract costs
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