l סא. 81% 9:29 AM Edit 5. Management at the Kerby Corporation has determined the following aggregated demand schedule (in units): Month 3 4 Demand 500 800 1,000 1,400 Month 5 6 Demand 2,000 3,000 2,700 1,500 Month 10 11 12 Demand 1,400 1,500 2,000 1,200 An employee can produce an average of 10 units per month. Each worker on the payroll costs $2,000 in regular-time wages per month. Undertime is paid at the same rate as regular time. In accordance with the labor contract in force, Kerby Corporation does not work overtime or use subcontracting. Kerby can hire and train a new employee for $2,000 and lay off one for $500. Inventory costs $32 per unit on hand at the end of each month. At present, 140 employees are on the payroll and anticipation inventory is zero. a. Prepare a production plan that only uses a level work- force and anticipation inventory as its supply options. Minimize the inventory left over at the end of the year. Layoffs, undertime, vacations, subcontracting, back- orders, and stockouts are not options. The plan may call for a one-time adjustment of the workforce before month 1 begins. b. Prepare a production plan using a chase strategy, relying only on hiring and layoffs. c. Prepare a mixed-strategy production plan that uses only a level workforce and anticipation inventory through month DO םם Tools Mobile View Share PDF to DOC

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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Management at the Kerby Corporation has determined the
following aggregated demand schedule (in units):
Month 1 2 3 4
Demand 500 800 1,000 1,400
Month 5 6 7 8
Demand 2,000 3,000 2,700 1,500
Month 9 10 11 12
Demand 1,400 1,500 2,000 1,200
An employee can produce an average of 10 units per month.
Each worker on the payroll costs $2,000 in regular-time
wages per month. Undertime is paid at the same rate as
regular time. In accordance with the labor contract in
force, Kerby Corporation does not work overtime or use
subcontracting. Kerby can hire and train a new employee
for $2,000 and lay off one for $500. Inventory costs $32 per
unit on hand at the end of each month. At present, 140
employees are on the payroll and anticipation inventory is
zero.
a. Prepare a production plan that only uses a level work￾force and anticipation inventory as its supply options.
Minimize the inventory left over at the end of the year.
Layoffs, undertime, vacations, subcontracting, back￾orders, and stockouts are not options. The plan may call
for a one-time adjustment of the workforce before month
1 begins.
b. Prepare a production plan using a chase strategy, relying
only on hiring and layoffs.

l סא.
81% 9:29 AM
Edit
5. Management at the Kerby Corporation has determined the
following aggregated demand schedule (in units):
Month
3
4
Demand
500
800
1,000
1,400
Month
5
6
Demand
2,000
3,000
2,700
1,500
Month
10
11
12
Demand
1,400
1,500
2,000
1,200
An employee can produce an average of 10 units per month.
Each worker on the payroll costs $2,000 in regular-time
wages per month. Undertime is paid at the same rate as
regular time. In accordance with the labor contract in
force, Kerby Corporation does not work overtime or use
subcontracting. Kerby can hire and train a new employee
for $2,000 and lay off one for $500. Inventory costs $32 per
unit on hand at the end of each month. At present, 140
employees are on the payroll and anticipation inventory is
zero.
a. Prepare a production plan that only uses a level work-
force and anticipation inventory as its supply options.
Minimize the inventory left over at the end of the year.
Layoffs, undertime, vacations, subcontracting, back-
orders, and stockouts are not options. The plan may call
for a one-time adjustment of the workforce before month
1 begins.
b. Prepare a production plan using a chase strategy, relying
only on hiring and layoffs.
c. Prepare a mixed-strategy production plan that uses only a
level workforce and anticipation inventory through month
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םם
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Transcribed Image Text:l סא. 81% 9:29 AM Edit 5. Management at the Kerby Corporation has determined the following aggregated demand schedule (in units): Month 3 4 Demand 500 800 1,000 1,400 Month 5 6 Demand 2,000 3,000 2,700 1,500 Month 10 11 12 Demand 1,400 1,500 2,000 1,200 An employee can produce an average of 10 units per month. Each worker on the payroll costs $2,000 in regular-time wages per month. Undertime is paid at the same rate as regular time. In accordance with the labor contract in force, Kerby Corporation does not work overtime or use subcontracting. Kerby can hire and train a new employee for $2,000 and lay off one for $500. Inventory costs $32 per unit on hand at the end of each month. At present, 140 employees are on the payroll and anticipation inventory is zero. a. Prepare a production plan that only uses a level work- force and anticipation inventory as its supply options. Minimize the inventory left over at the end of the year. Layoffs, undertime, vacations, subcontracting, back- orders, and stockouts are not options. The plan may call for a one-time adjustment of the workforce before month 1 begins. b. Prepare a production plan using a chase strategy, relying only on hiring and layoffs. c. Prepare a mixed-strategy production plan that uses only a level workforce and anticipation inventory through month DO םם Tools Mobile View Share PDF to DOC
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