ng labor or $80/disk $12/hour $18/hour for hours $40/worker $80/worker

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...
icon
Related questions
Question

13.7 ANSWER A AND B

...13.7 Consuelo Chua, Inc., is a disk drive manufacturer in
need of an aggregate plan for July through December. The com-
pany has gathered the following data:
COSTS
$8/disk/month
Holding cost
Subcontracting
$80/disk
Regular-time labor
$12/hour
Overtime labor
$18/hour for hours above 8 hours/worker/day
Hiring cost
$40/worker
Layoff cost
$80/worker
DEMAND*
July
400
Aug.
500
Sept.
550
Oct.
700
Nov.
800
Dec.
700
*No costs are incurred for unmet demand, but
unmet demand (backorders) must be handled
in the following period. If half or more of a
worker is needed, round up.
Transcribed Image Text:...13.7 Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The com- pany has gathered the following data: COSTS $8/disk/month Holding cost Subcontracting $80/disk Regular-time labor $12/hour Overtime labor $18/hour for hours above 8 hours/worker/day Hiring cost $40/worker Layoff cost $80/worker DEMAND* July 400 Aug. 500 Sept. 550 Oct. 700 Nov. 800 Dec. 700 *No costs are incurred for unmet demand, but unmet demand (backorders) must be handled in the following period. If half or more of a worker is needed, round up.
OTHER DATA
Current workforce (June)
Labor-hours/disk
Workdays/month
20 days
Beginning inventory
150 disks**
No requirement for ending inventory
O disks
**Note that there is no holding cost for June.
What will each of the two following strategies cost?
a) Vary the workforce so that production meets demand. Chua
had eight workers on board in June.
b) Vary overtime only and use a constant workforce of eight. Px
8 people
4 hours
Transcribed Image Text:OTHER DATA Current workforce (June) Labor-hours/disk Workdays/month 20 days Beginning inventory 150 disks** No requirement for ending inventory O disks **Note that there is no holding cost for June. What will each of the two following strategies cost? a) Vary the workforce so that production meets demand. Chua had eight workers on board in June. b) Vary overtime only and use a constant workforce of eight. Px 8 people 4 hours
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.