The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March April 1,200 May 1,500 June 1,700 1,700 July August 2,300 2,300 1,900 1,900 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan A. Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $50 per unit. The cost of laying off workers is $75 per unit. Evaluate this plan. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,200 in February incurs a cost of layoff for 400 units in February. Hire Period Month Demand Production (Units) Layoff (Units) 0 December 1,600 1,600 Ending Inventory 200 Stockouts (Units) 1 January 1,200 1,600 2 February 1,500 1,200 3 March 1,700 1,500 4 April 1,700 1,700 5 May 2,300 1,700 6 June 2,300 2,300 7 July 1,900 2,300 8 August 1,900 1,900 The total cost of hirings = $ (Enter your response as a whole number.) The total cost of layoffs = $ (Enter your response as a whole number.) The total inventory carrying cost = $ (Enter your response as a whole number.) The total stockout cost = $ (Enter your response as a whole number.) The total cost, excluding normal time labor costs, is = $ (Enter your response as a whole number.)

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...
Question
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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:
January
February
March
April
1,200
May
1,500
June
1,700
1,700
July
August
2,300
2,300
1,900
1,900
Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 per unit per month.
Ignore any idle-time costs. The plan is called plan A.
Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring
additional workers is $50 per unit. The cost of laying off workers is $75 per unit. Evaluate this plan. (Enter all responses as whole numbers.)
Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,200 in February incurs a cost of layoff for 400 units in February.
Hire
Period Month
Demand Production (Units)
Layoff
(Units)
0
December
1,600
1,600
Ending
Inventory
200
Stockouts
(Units)
1
January
1,200
1,600
2
February
1,500
1,200
3
March
1,700
1,500
4
April
1,700
1,700
5
May
2,300
1,700
6
June
2,300
2,300
7
July
1,900
2,300
8
August
1,900
1,900
The total cost of hirings = $
(Enter your response as a whole number.)
The total cost of layoffs = $
(Enter your response as a whole number.)
The total inventory carrying cost = $
(Enter your response as a whole number.)
The total stockout cost = $ (Enter your response as a whole number.)
The total cost, excluding normal time labor costs, is = $ (Enter your response as a whole number.)
Transcribed Image Text:The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March April 1,200 May 1,500 June 1,700 1,700 July August 2,300 2,300 1,900 1,900 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan A. Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $50 per unit. The cost of laying off workers is $75 per unit. Evaluate this plan. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,200 in February incurs a cost of layoff for 400 units in February. Hire Period Month Demand Production (Units) Layoff (Units) 0 December 1,600 1,600 Ending Inventory 200 Stockouts (Units) 1 January 1,200 1,600 2 February 1,500 1,200 3 March 1,700 1,500 4 April 1,700 1,700 5 May 2,300 1,700 6 June 2,300 2,300 7 July 1,900 2,300 8 August 1,900 1,900 The total cost of hirings = $ (Enter your response as a whole number.) The total cost of layoffs = $ (Enter your response as a whole number.) The total inventory carrying cost = $ (Enter your response as a whole number.) The total stockout cost = $ (Enter your response as a whole number.) The total cost, excluding normal time labor costs, is = $ (Enter your response as a whole number.)
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