The PPS Company assembles home air conditioning units for the local market. The projected demand over the first eight months is:
The PPS Company assembles home air conditioning units for the local market. The projected demand over the first eight months is:
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Find the constant workforce plan for the eight mont and total cost ?
![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
3387
April
May
June
20
4045
22
4065
21
3085
July
August
20
3450
21
2765
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f40f6f2-8910-4e55-bca7-ea9ffa882ecd%2Ff11f0f2b-7c98-454d-ad68-e6b606f08cb9%2Fjupdcgwn_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
3387
April
May
June
20
4045
22
4065
21
3085
July
August
20
3450
21
2765
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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