Helter Industries, a company that produces a line of women's bathing sults, 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 205 sults, while each temporary employee can produce 165 sults per month. Demand for bathing sults for the next four months is as follows: MAY JULY JUNE 3,200 2,800 3,100 Beginning Inventory In May Is 403 complete (a complete two-plece includes both top and bottom) bathing sults. 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 AUGUST 3,000 Regular workforce Regular production Temp workforce Temp production Total production Ending inventory Inventory cost Total May 3,200 June 2,800 July 3,100 August 3,000
Helter Industries, a company that produces a line of women's bathing sults, 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 205 sults, while each temporary employee can produce 165 sults per month. Demand for bathing sults for the next four months is as follows: MAY JULY JUNE 3,200 2,800 3,100 Beginning Inventory In May Is 403 complete (a complete two-plece includes both top and bottom) bathing sults. 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 AUGUST 3,000 Regular workforce Regular production Temp workforce Temp production Total production Ending inventory Inventory cost Total May 3,200 June 2,800 July 3,100 August 3,000
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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Ch. 19 Q10
Transcribed Image Text:Problem
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 205 sults, while each temporary employee can produce 165 sults per month.
Demand for bathing sults for the next four months is as follows:
JUNE
MAY
JULY
3,200 2,800 3,100
Beginning Inventory In May Is 403 complete (a complete two-plece Includes both top and bottom) bathing sults. Bathing sults cost $40
to produce and carrying cost is 24 percent per year.
AUGUST
3,000
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
Temp workforce
Temp production
Total production
Ending inventory
Inventory cost
Total
May
3,200
June
2,800
July
3,100
August
3,000
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