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Business
Operations Management
Problem Data Cost data Regular-time labor cost per hour Overtime labor cost per hour Subcontracting cost per unit (labor only) Holding cost per unit per period Back-order cost per unit per period Hiring cost per employee Firing cost per employee $10.00 $15.00 $84.00 $10.00 $20.00 $600.00 $450.00 Capacity data Beginning workforce Beginning inventory Labor standard per unit Regular time available per period Overtime available per period Subcontracting maximum per period Subcontracting minimum per period 210 employees 400 units 6 hours 160 hours 32 hours 1000 units 500 units Demand data Period 1 6000 units Period 2 4800 units Period 3 7840 units Period 4 5200 units Period 5 6560 units Period 6 3600 units

Problem Data Cost data Regular-time labor cost per hour Overtime labor cost per hour Subcontracting cost per unit (labor only) Holding cost per unit per period Back-order cost per unit per period Hiring cost per employee Firing cost per employee $10.00 $15.00 $84.00 $10.00 $20.00 $600.00 $450.00 Capacity data Beginning workforce Beginning inventory Labor standard per unit Regular time available per period Overtime available per period Subcontracting maximum per period Subcontracting minimum per period 210 employees 400 units 6 hours 160 hours 32 hours 1000 units 500 units Demand data Period 1 6000 units Period 2 4800 units Period 3 7840 units Period 4 5200 units Period 5 6560 units Period 6 3600 units

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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Question

Jill has decided that the BackPack Company must have
very good customer service. She has asked you to develop a level
aggregate plan using inventories but not back orders. All demand
must be met each period. You must:
(a) Calculate the aggregate production rate.
(b) Calculate the appropriate workforce given the aggregate
production rate.
(c) Show what would happen if this plan were implemented.
(d) Calculate the costs of this plan.
(e) Evaluate the plan in terms of cost, customer service,
operations, and human resources.

Problem Data Cost data Regular-time labor cost per hour Overtime labor cost per hour Subcontracting cost per unit (labor only) Holding cost per unit per period Back-order cost per unit per period Hiring cost per employee Firing cost per employee $10.00 $15.00 $84.00 $10.00 $20.00 $600.00 $450.00 Capacity data Beginning workforce Beginning inventory Labor standard per unit Regular time available per period Overtime available per period Subcontracting maximum per period Subcontracting minimum per period 210 employees 400 units 6 hours 160 hours 32 hours 1000 units 500 units Demand data Period 1 6000 units Period 2 4800 units Period 3 7840 units Period 4 5200 units Period 5 6560 units Period 6 3600 units
Transcribed Image Text:Problem Data Cost data Regular-time labor cost per hour Overtime labor cost per hour Subcontracting cost per unit (labor only) Holding cost per unit per period Back-order cost per unit per period Hiring cost per employee Firing cost per employee $10.00 $15.00 $84.00 $10.00 $20.00 $600.00 $450.00 Capacity data Beginning workforce Beginning inventory Labor standard per unit Regular time available per period Overtime available per period Subcontracting maximum per period Subcontracting minimum per period 210 employees 400 units 6 hours 160 hours 32 hours 1000 units 500 units Demand data Period 1 6000 units Period 2 4800 units Period 3 7840 units Period 4 5200 units Period 5 6560 units Period 6 3600 units
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