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Operations Management
Plan production for the next year. The demand forecast is spring, 20,000; summer, 10,000; fall, 15,000: winter, 18,000. At the beginning of spring you have 70 workers and 1,000 units in Inventory. The union contract specifies that you may lay off workers only once a year, at the beginning of summer. Also, you may hire new workers only at the end of summer to begin regular work in the fall. The number of workers laid off at the beginning of summer and the number hired at the start of fall should result in planned production levels for summer and fall that equal the demand forecasts for summer and fall, respectively. If demand exceeds supply, use overtime in spring only, which means that backorders could occur in winter. You are given these costs: hiring. $100 per new worker, layoff, $200 per worker laid off; holding. $20 per unit-quarter; backorder.cost, $8 per unit, straight-time labor, $10 per hour, overtime, $15 per hour. Productivity is 0.5 unit per worker hour, eight hours per day, 50 days per quarter. Find the total cost of this plan. Note: Hiring expense occurs at beginning of Fall. (Leave no cells blank - be certain to enter "0" wherever required.) Forecast Beginning inventory Production required Production hours required Regular workforce Regular production Overtime hours Overtime production Total production Ending inventory Ending backorders Workers hired Workers laid off Straight time Overtime Inventory Backorder Hiring Layoff Total Total cost Spring Summer Spring 20,000 Fall Summer Fall 10,000 15,000 Winter Winter 18,000

Plan production for the next year. The demand forecast is spring, 20,000; summer, 10,000; fall, 15,000: winter, 18,000. At the beginning of spring you have 70 workers and 1,000 units in Inventory. The union contract specifies that you may lay off workers only once a year, at the beginning of summer. Also, you may hire new workers only at the end of summer to begin regular work in the fall. The number of workers laid off at the beginning of summer and the number hired at the start of fall should result in planned production levels for summer and fall that equal the demand forecasts for summer and fall, respectively. If demand exceeds supply, use overtime in spring only, which means that backorders could occur in winter. You are given these costs: hiring. $100 per new worker, layoff, $200 per worker laid off; holding. $20 per unit-quarter; backorder.cost, $8 per unit, straight-time labor, $10 per hour, overtime, $15 per hour. Productivity is 0.5 unit per worker hour, eight hours per day, 50 days per quarter. Find the total cost of this plan. Note: Hiring expense occurs at beginning of Fall. (Leave no cells blank - be certain to enter "0" wherever required.) Forecast Beginning inventory Production required Production hours required Regular workforce Regular production Overtime hours Overtime production Total production Ending inventory Ending backorders Workers hired Workers laid off Straight time Overtime Inventory Backorder Hiring Layoff Total Total cost Spring Summer Spring 20,000 Fall Summer Fall 10,000 15,000 Winter Winter 18,000

Practical Management Science
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 Q8
dy Plan production for the next year. The demand forecast is spring, 20,000; summer, 10,000; fall, 15,000: winter, 18,000. At the beginning of spring you have 70 workers and 1,000 units in Inventory. The union contract specifies that you may lay off workers only once a year, at the beginning of summer. Also, you may hire new workers only at the end of summer to begin regular work in the fall. The number of workers laid off at the beginning of summer and the number hired at the start of fall should result in planned production levels for summer and fall that equal the demand forecasts for summer and fall, respectively. If demand exceeds supply, use overtime in spring only, which means that backorders could occur in winter. You are given these costs: hiring. $100 per new worker; layoff, $200 per worker laid off; holding. $20 per unit-quarter; backorder.cost, $8 per unit; straight-time labor, $10 per hour, overtime, $15 per hour. Productivity is 0.5 unit per worker hour, eight hours per day, 50 days per quarter. . Find the total cost of this plan. Note: Hiring expense occurs at beginning of Fall. (Leave no cells blank - be certain to enter "0" wherever required.) Forecast Beginning inventory Production required Production hours required Regular workforce Regular production Overtime hours Overtime production Total production Ending inventory Ending backorders Workers hired Workers laid off Straight time Overtime Inventory Backorder Hiring Layoff Total Total cost Spring Summer Spring Summer 20,000 Fall Fall 10,000 15,000 Winter Winter 18,000 Q Search < Prev 8 of 14 *** www ly Next
Transcribed Image Text:dy Plan production for the next year. The demand forecast is spring, 20,000; summer, 10,000; fall, 15,000: winter, 18,000. At the beginning of spring you have 70 workers and 1,000 units in Inventory. The union contract specifies that you may lay off workers only once a year, at the beginning of summer. Also, you may hire new workers only at the end of summer to begin regular work in the fall. The number of workers laid off at the beginning of summer and the number hired at the start of fall should result in planned production levels for summer and fall that equal the demand forecasts for summer and fall, respectively. If demand exceeds supply, use overtime in spring only, which means that backorders could occur in winter. You are given these costs: hiring. $100 per new worker; layoff, $200 per worker laid off; holding. $20 per unit-quarter; backorder.cost, $8 per unit; straight-time labor, $10 per hour, overtime, $15 per hour. Productivity is 0.5 unit per worker hour, eight hours per day, 50 days per quarter. . Find the total cost of this plan. Note: Hiring expense occurs at beginning of Fall. (Leave no cells blank - be certain to enter "0" wherever required.) Forecast Beginning inventory Production required Production hours required Regular workforce Regular production Overtime hours Overtime production Total production Ending inventory Ending backorders Workers hired Workers laid off Straight time Overtime Inventory Backorder Hiring Layoff Total Total cost Spring Summer Spring Summer 20,000 Fall Fall 10,000 15,000 Winter Winter 18,000 Q Search < Prev 8 of 14 *** www ly Next
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