The PPS Company assembles home air conditioning units for the local market. The projected demand over the first eight months is: Month Workdays Forecasted Demand in Aggregate Units 1800 January February March 21 19 2465 20 3XXX April May 20 4045 22 4065 June 21 3085 July August 20 3450 21 2765 The forecasted demand in aggregate units for March is given as 3387 A normal work-day is eight hours. Hiring costs are OMR 580 per worker and firing costs are OMR 1550 per worker. Holding costs are OMR 3.25 per aggregate unit held per month, and backorder cost is OMR 33 per aggregate unit per month. It requires an average of 45 minutes for one worker to assemble one air conditioning unit. The ending inventory in December of the previous year was 125 units, and the manager wants to have at least 80 units on hand in inventory at the end of June. The workforce at the end of December in the previous year was 14 workers. Workers are paid OMR 7.5 per hour for regular time labor. Overtime labor costs OMR 9 per worker per hour, and the maximum overtime that is allowed is 3 hours per worker each day.
The PPS Company assembles home air conditioning units for the local market. The projected demand over the first eight months is: Month Workdays Forecasted Demand in Aggregate Units 1800 January February March 21 19 2465 20 3XXX April May 20 4045 22 4065 June 21 3085 July August 20 3450 21 2765 The forecasted demand in aggregate units for March is given as 3387 A normal work-day is eight hours. Hiring costs are OMR 580 per worker and firing costs are OMR 1550 per worker. Holding costs are OMR 3.25 per aggregate unit held per month, and backorder cost is OMR 33 per aggregate unit per month. It requires an average of 45 minutes for one worker to assemble one air conditioning unit. The ending inventory in December of the previous year was 125 units, and the manager wants to have at least 80 units on hand in inventory at the end of June. The workforce at the end of December in the previous year was 14 workers. Workers are paid OMR 7.5 per hour for regular time labor. Overtime labor costs OMR 9 per worker per hour, and the maximum overtime that is allowed is 3 hours per worker each day.
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What is the constant workforce plan for the eight months ?
Transcribed Image Text:DATE: March 10, 2021
DUE: March 31, 2021
The PPS Company assembles home air conditioning units for the local market. The
projected demand over the first eight months is:
Month
Workdays
Forecasted Demand in
Aggregate Units
January
February
March
21
1800
19
2465
20
3XXX
April
May
June
20
4045
22
4065
21
3085
20
July
August
3450
21
2765
The forecasted demand in aggregate units for March is given as 3387
A normal work-day is eight hours. Hiring costs are OMR 580 per worker and firing costs
are OMR 1550 per worker. Holding costs are OMR 3.25 per aggregate unit held per
month, and backorder cost is OMR 33 per aggregate unit per month. It requires an
average of 45 minutes for one worker to assemble one air conditioning unit. The ending
inventory in December of the previous year was 125 units, and the manager wants to
have at least 80 units on hand in inventory at the end of June. The workforce at the end of
December in the previous year was 14 workers. Workers are paid OMR 7.5 per hour for
regular time labor. Overtime labor costs OMR 9 per worker per hour, and the maximum
overtime that is allowed is 3 hours per worker each day.
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