Use a mixed strategy - level of production (Jan- June) and chase demand (July - September) with a support of overtime and sub-contracting not more than two workers and no limit for back orders. Feb 2750 March 1250 April 1500 July 2750 Angust 2250 Sept 2500 Jan May 2250 June 1750 1000 Current work force 10 workers Production per worker Inventory holding cost Regular wage rate Overtime wage rate Sub-contracting wage rate Back-ordering wage rate Hiring cost Firing cost Beginning inventory 250 units per month S0.50 per umit per month $50.00 umit per S60.00 per umit $70.00 per unit $90.00 per unit $500 per worker S800 per worker 250 units Mth Regular Production Ending Inventory Back Demand OT S/k Workers H. F Order F M J Total Kos (Cost:
Use a mixed strategy - level of production (Jan- June) and chase demand (July - September) with a support of overtime and sub-contracting not more than two workers and no limit for back orders. Feb 2750 March 1250 April 1500 July 2750 Angust 2250 Sept 2500 Jan May 2250 June 1750 1000 Current work force 10 workers Production per worker Inventory holding cost Regular wage rate Overtime wage rate Sub-contracting wage rate Back-ordering wage rate Hiring cost Firing cost Beginning inventory 250 units per month S0.50 per umit per month $50.00 umit per S60.00 per umit $70.00 per unit $90.00 per unit $500 per worker S800 per worker 250 units Mth Regular Production Ending Inventory Back Demand OT S/k Workers H. F Order F M J Total Kos (Cost:
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:Use a mixed strategy - level of procuction (Jan-June) and chase demand (July- September with
a support of overtime and sub-contracting not more than two workers and no limid for back orders.
Jan
1000
Feb
2750
March
1250
April
1500
May
2250
June
1750
July
2750
August
2250
Sept
2500
Current work force
10 workers
Production
per worker
Inventory holding cost
Regular wage rate
Overtime wage rate
Sub-contracting wage rate
Back-ordering wage rate
Hiring cost
Firing cost
Beginning inventory
250 units per month
S0.50 per
unit
per
month
$50.00 per unit
S60.00 per unit
$70.00 per unit
$90.00 per unit
$500 per worker
S800
worker
per
250 units
Mth
Regular
Production
Ending
Back
Order
Demand
OT
S/k
Workers
Inventory
J
F
M
A.
M
J
J
Total
Kos (Cost:
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