Togo makes riding lawn mowers and tractors. The company's expected quarterly demand is given below in the chart. The company will have 200 mowers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the quarter. Below is other critical data: Production cost per unit = $210 Inventory carrying cost per month per unit = $30 (based on ending month inventory) Hiring cost per worker= $400 Firing cost per worker = $500 Beginning number of workers = 50 Each worker can produce 100 units per quarter. a. Given the planning information, develop a level production plan and a chase production plan. (Leave no cells blank - be certain to enter "0" wherever required.) Level Plan Regular Ending Inventory Workers Required QuarterDemand Production 4,000 8,000 Hire Fire 1. 3 6,000 6,000 4 24.000 Total Chase Plan - Variable Workforce Regular Ending Inventory Workers Required QuarterDemand Production 4,000 8,000 6,000 6.000 Hire Fire Total 24,000 123t
Togo makes riding lawn mowers and tractors. The company's expected quarterly demand is given below in the chart. The company will have 200 mowers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the quarter. Below is other critical data: Production cost per unit = $210 Inventory carrying cost per month per unit = $30 (based on ending month inventory) Hiring cost per worker= $400 Firing cost per worker = $500 Beginning number of workers = 50 Each worker can produce 100 units per quarter. a. Given the planning information, develop a level production plan and a chase production plan. (Leave no cells blank - be certain to enter "0" wherever required.) Level Plan Regular Ending Inventory Workers Required QuarterDemand Production 4,000 8,000 Hire Fire 1. 3 6,000 6,000 4 24.000 Total Chase Plan - Variable Workforce Regular Ending Inventory Workers Required QuarterDemand Production 4,000 8,000 6,000 6.000 Hire Fire Total 24,000 123t
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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Transcribed Image Text:Togo makes riding lawn mowers and tractors. The company's expected quarterly
demand is given below in the chart. The company will have 200 mowers in inventory at
the beginning of the month and desires to maintain at least that number at the end of
each month. ASsume hiring and layoff/firing, if necessary, occur at the beginning of the
quarter. Below is other critical data:
Production cost per unit = $210
Inventory carrying cost per month per unit = $30 (based on ending month inventory)
Hiring cost per worker = $400
Firing cost per worker = $500
Beginning number of workers = 50
Each worker can produce 100 units per quarter.
a. Given the planning information, develop a level production plan and a chase
production plan. (Leave no cells blank - be certain to enter "0" wherever required.)
Level Plan
Regular
Ending
Inventory
Workers
QuarterDemand Production
1.
Required
Hire
Fire
4,000
8,000
6,000
6,000
24,000
Total
Chase Plan - Variable Workforce
Regular
QuarterDemand Production
4,000
Ending
Inventory
Workers
Required
Hire
Fire
2.
8,000
6,000
6,000
3.
4
Total
24,000
ulate
234
Transcribed Image Text:b. Calculate the cost of the two plans.
2$
Total cost for level plan
Total cost for chase plan
$4
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