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uary 100 February 1,200 Ma 1,4 g stockout costs for lost sale r unit per month, and a zero b

uary 100 February 1,200 Ma 1,4 g stockout costs for lost sale r unit per month, and a zero b

Practical Management Science
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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3) AGGREGATE PLANNING Mark Tuan, Operations Manager at GOT7 Furniture, has received the following estimates of demand requirements: January 1,100 February 1,200 March 1,400 April 1,800 May 1,800 June 1,600 Assuming stockout costs for lost sales of RM100 per unit, inventory carrying costs of RM25 per unit per month, and a zero beginning and ending inventory. Analyze the extra cost if the company vary the workforce, which performs at a current production level of 1,300 units per month. The cost of hiring additional workers is RM3,000 per 100 units produced. The cost of layoffs is RM6,000 per 100 units cut back.
Transcribed Image Text:3) AGGREGATE PLANNING Mark Tuan, Operations Manager at GOT7 Furniture, has received the following estimates of demand requirements: January 1,100 February 1,200 March 1,400 April 1,800 May 1,800 June 1,600 Assuming stockout costs for lost sales of RM100 per unit, inventory carrying costs of RM25 per unit per month, and a zero beginning and ending inventory. Analyze the extra cost if the company vary the workforce, which performs at a current production level of 1,300 units per month. The cost of hiring additional workers is RM3,000 per 100 units produced. The cost of layoffs is RM6,000 per 100 units cut back.
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