The forecast demand for a company for Jan. to June is given in the table below. It is known that the starting inventory in Jan. is 0 unit and it is required that 0 units be left at the end of June. It is known that the company had 40 workers last December. It is also known that these 40 workers produced 400 units last December that had 20 working days. Cost information is given below. (i) Wage: $120 per day per worker; Cost of hiring: $500 per worker; Cost of layoff: $1000 per worker (ii) Holding cost: $2 per unit; Shortage cost: $3 per unit The manager of this company wants to develop a staffing plan that minimizes total cost. He wants to use the constant strategy for January through June. (a) Calculate the average number of units produced per worker per day (K). (b) Complete the following table. (c) Show the following costs of this workforce plan. Wages: Inventory holding cost: Inventory shortage cost:
The
(i) Wage: $120 per day per worker; Cost of hiring: $500 per worker; Cost of layoff: $1000 per worker
(ii) Holding cost: $2 per unit; Shortage cost: $3 per unit
The manager of this company wants to develop a staffing plan that minimizes total cost. He wants to use the constant strategy for January through June.
(a) Calculate the average number of units produced per worker per day (K).
(b) Complete the following table.
(c) Show the following costs of this workforce plan.
Wages:
Inventory holding cost:
Inventory shortage cost:
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