Helter Industries, a company that produces a line of women's bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps can be hired when needed and can be used as needed, whereas the full-time employees must be paid whether they are needed or not. Each full-time employee can produce 209 suits, while each part-time employee can produce 169 suits per month. Demand for bathing suits for the next four months is as follows: MAY JUNE JULY 3,180 2,780 3,080 Beginning inventory in May is 401 complete (a complete two-piece includes both top and bottom) bathing suits. Bathing suits cost $40 to produce and carrying cost is 24 percent per year. Develop an aggregate plan that uses the 12 full-time employees each month and a minimum number of temporary employees. Assume that all employees will produce at their full potential each month. Calculate the inventory carrying cost associated with your plan using planned end of month levels. (Round "Inventory cost" to 2 decimal places.) Forecast Beginning inventory AUGUST 2,980 Production required Regular workforce Regular production Temp workforce Temp production Total production Ending inventory Inventory cost May 3,180 June 2,780 July 3,080 August 2,980 0000000 0000000 000000000 0000000000
Helter Industries, a company that produces a line of women's bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps can be hired when needed and can be used as needed, whereas the full-time employees must be paid whether they are needed or not. Each full-time employee can produce 209 suits, while each part-time employee can produce 169 suits per month. Demand for bathing suits for the next four months is as follows: MAY JUNE JULY 3,180 2,780 3,080 Beginning inventory in May is 401 complete (a complete two-piece includes both top and bottom) bathing suits. Bathing suits cost $40 to produce and carrying cost is 24 percent per year. Develop an aggregate plan that uses the 12 full-time employees each month and a minimum number of temporary employees. Assume that all employees will produce at their full potential each month. Calculate the inventory carrying cost associated with your plan using planned end of month levels. (Round "Inventory cost" to 2 decimal places.) Forecast Beginning inventory AUGUST 2,980 Production required Regular workforce Regular production Temp workforce Temp production Total production Ending inventory Inventory cost May 3,180 June 2,780 July 3,080 August 2,980 0000000 0000000 000000000 0000000000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Helter Industries, a company that produces a line of women's bathing suits, hires
temporaries to help produce its summer product demand. For the current four-month
rolling schedule, there are three temps on staff and 12 full-time employees. The temps
can be hired when needed and can be used as needed, whereas the full-time
employees must be paid whether they are needed or not. Each full-time employee can
produce 209 suits, while each part-time employee can produce 169 suits per month.
Demand for bathing suits for the next four months is as follows:
MAY JUNE JULY
3,180 2,780 3,080
Beginning inventory in May is 401 complete (a complete two-piece includes both top
and bottom) bathing suits. Bathing suits cost $40 to produce and carrying cost is 24
percent per year.
Develop an aggregate plan that uses the 12 full-time employees each month and a
minimum number of temporary employees. Assume that all employees will produce at
their full potential each month. Calculate the inventory carrying cost associated with your
plan using planned end of month levels. (Round "Inventory cost" to 2 decimal places.)
Forecast
Beginning
inventory
Production
required
Regular
workforce
Regular
production
AUGUST
2,980
Temp workforce
Temp
production
Total production
Ending
inventory
Inventory cost
May
3,180
000000000
June
2,780
July
3,080
00000⁰000
000000000
August
2,980
000
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