The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 2,100 February 2,200 Period Month December January 0 1 2 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 $20 per unit per month. Ignore any idle-time costs. The plan is called plan A. 3 4 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 $80 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 D 5 6 7 8 February March March April April May June July August 1,200 1,600 1,800 1,800 1,600 1,800 1,800 Hire Demand Production (Units) 1,600 1,600 1,200 1,600 2,100 2,200 1,800 1,800 May June July August 1,200 1,600 1,800 1,800 2,100 2,200 1,800 1,800 1,800 Layoff Ending (Units) Inventory 200 27 Stockouts (Units)
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 2,100 February 2,200 Period Month December January 0 1 2 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 $20 per unit per month. Ignore any idle-time costs. The plan is called plan A. 3 4 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 $80 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 D 5 6 7 8 February March March April April May June July August 1,200 1,600 1,800 1,800 1,600 1,800 1,800 Hire Demand Production (Units) 1,600 1,600 1,200 1,600 2,100 2,200 1,800 1,800 May June July August 1,200 1,600 1,800 1,800 2,100 2,200 1,800 1,800 1,800 Layoff Ending (Units) Inventory 200 27 Stockouts (Units)
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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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:
January
May
2,100
February
June
2,200
July
1,800
August
1,800
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 $20 per unit per
month. Ignore any idle-time costs. The plan is called plan A.
Calculator Ask my instructor
2
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 $80 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.
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Period Month
December
January
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March
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May
June
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March
April
6
B
Demand
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1.200
1,600
1,800
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Transcribed Image Text:FI
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:
January
May
2,100
February
June
2,200
July
1,800
August
1,800
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 $20 per unit per
month. Ignore any idle-time costs. The plan is called plan A.
Calculator Ask my instructor
2
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 $80 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.
W
S
F2
X
ommand
#3
E
D
80
F3
C
$
4
R
000
000
F4
F
Period Month
December
January
0
DO LO
%
5
V
1.
2
3
4
5
5
6
February
March
T
April
May
June
July
7
8 August
24
F5
G
March
April
6
B
Demand
1,600
1.200
1,600
1,800
1,800
2,100
2,200
1,800
1,800
Fo
Y
1,200
1,600
1,800
1,800
H
MacBook Pro
&
7
Production
1,600
1.600
N
1,200
1,600
1,800
1,800
2,100
2,200
1,800
44
F7
U
J
* 00
8
Hire
(Units)
PE
S
M
DII
FB
I
Layoff
(Units)
K
P
0-
(
9
DD
F9
H
<
O
I
Ending
Inventory
200
.c
0
L
command
J
F10
Stockouts
(Units)
P
..
t
:
;
option
O
Clear all
d
S
F11
{
[
?
1
+ 11
=
11
I
A
4)
F12
Check answer
}
]
delete
4
1
.
return
shift
A
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