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used to handle demand fluctuations. She has asked you to develop such a plan. (a) Calculate the aggregate production rate. (b) Calculate the appropriate workforce given the aggregate production rate. (c) Show what would happen if this plan were implemented. (d) Calculate the costs of this plan. (e) Evaluate the plan in terms of cost, customer service, operations, and human resources.

used to handle demand fluctuations. She has asked you to develop such a plan. (a) Calculate the aggregate production rate. (b) Calculate the appropriate workforce given the aggregate production rate. (c) Show what would happen if this plan were implemented. (d) Calculate the costs of this plan. (e) Evaluate the plan in terms of cost, customer service, operations, and human resources.

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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Problenms Use the following data to solve the first seven problems. Problem Data Cost data Regular-time labor cost per hour Overtime labor cost per hour $10.00 $15.00 $84.00 Subcontracting cost per unit (labor only) Holding cost per unit per period Back-order cost per $10.00 unit per period $20.00 $600.00 Hiring cost per employee Firing cost per employee $450.00 Capacity data Beginning workforce Beginning inventory 210 employees 400 units Labor standard per unit 6 hours 160 hours Regular time available per period Overtime available per period Subcontracting maximum per period Subcontracting minimum per period 32 hours 1000 units 500 units Demand data Period 1 6000 units Period 2 4800 units Period 3 7840 units Period 4 5200 units Period 5 6560 units Period 6 3600 units 1. The BackPack Company produces a line of backpacks. The manager, Jill Nicholas, is interested in using a level aggregate plan. Inventories and back orders will be
Transcribed Image Text:Problenms Use the following data to solve the first seven problems. Problem Data Cost data Regular-time labor cost per hour Overtime labor cost per hour $10.00 $15.00 $84.00 Subcontracting cost per unit (labor only) Holding cost per unit per period Back-order cost per $10.00 unit per period $20.00 $600.00 Hiring cost per employee Firing cost per employee $450.00 Capacity data Beginning workforce Beginning inventory 210 employees 400 units Labor standard per unit 6 hours 160 hours Regular time available per period Overtime available per period Subcontracting maximum per period Subcontracting minimum per period 32 hours 1000 units 500 units Demand data Period 1 6000 units Period 2 4800 units Period 3 7840 units Period 4 5200 units Period 5 6560 units Period 6 3600 units 1. The BackPack Company produces a line of backpacks. The manager, Jill Nicholas, is interested in using a level aggregate plan. Inventories and back orders will be
used to handle demand fluctuations. She has asked you to develop such a plan. (a) Calculate the aggregate production rate. (b) Calculate the appropriate workforce given the aggregate production rate. (c) Show what would happen if this plan were implemented. (d) Calculate the costs of this plan. (e) Evaluate the plan in terms of cost, customer service, operations, and human resources. 2. Jill has decided that the BackPack Company must have very good customer service. She has asked you to develop a level aggregate plan using inventories but not back orders. All demand must be met each period. You must: (a) Calculate the aggregate production rate. (b) Calculate the appropriate workforce given the aggregate production rate. (c) Show what would happen if this plan were implemented. (d) Calculate the costs of this plan. (e) Evaluate the plan in terms of cost, customer service, operations, and human resources. 3. Although the BackPack Company has always used a level aggregate plan, Jill is interested in evaluating chase aggregate plans also. She has asked you to cal- culate how many hires and fires would be necessary to adjust capacity to meet demand exactly each period. If necessary, incur some undertime. Calculate the num- ber of workers needed each period. 4. Now that you have calculated the number of workers needed each period in Problem 3, Jill wants to see how the plan would actually work. You need to:
Transcribed Image Text:used to handle demand fluctuations. She has asked you to develop such a plan. (a) Calculate the aggregate production rate. (b) Calculate the appropriate workforce given the aggregate production rate. (c) Show what would happen if this plan were implemented. (d) Calculate the costs of this plan. (e) Evaluate the plan in terms of cost, customer service, operations, and human resources. 2. Jill has decided that the BackPack Company must have very good customer service. She has asked you to develop a level aggregate plan using inventories but not back orders. All demand must be met each period. You must: (a) Calculate the aggregate production rate. (b) Calculate the appropriate workforce given the aggregate production rate. (c) Show what would happen if this plan were implemented. (d) Calculate the costs of this plan. (e) Evaluate the plan in terms of cost, customer service, operations, and human resources. 3. Although the BackPack Company has always used a level aggregate plan, Jill is interested in evaluating chase aggregate plans also. She has asked you to cal- culate how many hires and fires would be necessary to adjust capacity to meet demand exactly each period. If necessary, incur some undertime. Calculate the num- ber of workers needed each period. 4. Now that you have calculated the number of workers needed each period in Problem 3, Jill wants to see how the plan would actually work. You need to:
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