JokersRWild makes playing cards in several different styles, but a “standard” deck of cards is used for planning purposes. The average worker at JokersRWild can make 10,000 sets of decks of cards per month at a cost of $3.40 per deck during regular production and $3.70 during overtime. The company currently employs 35 workers. Experience shows that it costs $1,700 to hire a worker and $1,700 to fire a worker. Inventory carrying cost is $.49 per deck per month. The beginning inventory is 54,000, and at least that amount is desired each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. Month January February March April May June Demand 200,000 240,000 200,000 530,000 540,000 870,000 e. Develop a six-month production plan based on chase by changing workforce level. (Leave no cells blank - be certain to enter "0" wherever required.) Chase Production Plan – Changing Workforce Level Month Demand Regular Production Ending Inventory Number of Workers Hire Fire layoff January 200,000 200,000 20 0 15 February 240,000 240,000 24 4 0 March 200,000 200,000 20 0 4 April 530,000 530,000 53 33 0 May 540,000 540,000 54 1 0 June 870,000 870,000 87 33 0 Total 2,580,000 2,580,000 0 71 19 f. Determine the cost of the chase production plan by changing workforce level. Total cost

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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JokersRWild makes playing cards in several different styles, but a “standard” deck of cards is used for planning purposes. The average worker at JokersRWild can make 10,000 sets of decks of cards per month at a cost of $3.40 per deck during regular production and $3.70 during overtime. The company currently employs 35 workers. Experience shows that it costs $1,700 to hire a worker and $1,700 to fire a worker. Inventory carrying cost is $.49 per deck per month.

The beginning inventory is 54,000, and at least that amount is desired each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month.

Month	January	February	March	April	May	June
Demand	200,000	240,000	200,000	530,000	540,000	870,000

e. Develop a six-month production plan based on chase by changing workforce level. (Leave no cells blank - be certain to enter "0" wherever required.)

Chase Production Plan – Changing Workforce Level
Month	Demand	Regular Production	Ending Inventory	Number of Workers	Hire	Fire layoff
January	200,000	200,000		20	0	15
February	240,000	240,000		24	4	0
March	200,000	200,000		20	0	4
April	530,000	530,000		53	33	0
May	540,000	540,000		54	1	0
June	870,000	870,000		87	33	0
Total	2,580,000	2,580,000	0		71	19

f. Determine the cost of the chase production plan by changing workforce level.

Total cost

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