OPERATIONS MANAGEMENT CUSTOM ACCESS
OPERATIONS MANAGEMENT CUSTOM ACCESS
11th Edition
ISBN: 9780135622438
Author: KRAJEWSKI
Publisher: PEARSON EDUCATION (COLLEGE)
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Chapter 10, Problem 9P

Climate Control, Inc. makes expedition-quality rain gear for outdoor enthusiasts. Management prepared a forecast of sales (in suits) for next year and now must prepare a production plan. The company has tradition ally maintained a level workforce strategy. All nine workers are treated like family and have been employed by the company for a number of years. Each employee can produce 2,000 suits per month. At present, finished goods inventory holds 24,000 suits. The demand forecast follows:

Chapter 10, Problem 9P, Climate Control, Inc. makes expedition-quality rain gear for outdoor enthusiasts. Management

Use the Sales and Operations Planning with Spread sheets Solver in OM Explorer or develop your own spreadsheet models to address the following questions.

  1. Management is willing to authorize overtime in periods for which regular production and current levels of anticipation inventory do not satisfy demand. However, overtime must be strictly limited to no more than 20 percent of regular-time capacity. Management wants to avoid stockouts and backorders and is not willing to accept a plan that calls for shortages. Is it feasible to hold the workforce constant, assuming that overtime is only used in periods for which shortages would occur?
  2. Assume that management is not willing to authorize any overtime. Instead, management is will to negotiate with customers so that backorders may be used as a supply option. However, management is not willing to carry more than 5,000 suits from one month to the next in backorder. Is it feasible to hold the work-force constant, assuming that a maximum backorder of 5,000 suits may be maintained from month to month?
  3. Assume management is willing to authorize the use of overtime over the next 4 months to build additional anticipation inventory. However, overtime must be strictly limited to no more than 20 percent of regular-time capacity. Management wants to avoid stockouts and backorders and is not willing to accept a plan that calls for shortages. Is it feasible to hold the workforce constant, assuming that overtime is only used in months 1 through 4? If not, in which months would additional overtime be required?

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please help me with Question 3 thanks! Demand forecasts for 2021 are as follows: Month Demand Jan 140,000 Feb 78,900 Mar 85,800 Apr 89,100 May 123,600 Jun 136,350 Jul 120,450 Aug 106,950 Sep 121,950 Oct 135,750 Nov 87,000 Dec 93,300 Each worker can produce 900 products per month and is paid $1500 per month. Assume that at the end of last year, the company has 100 employees working on the production line. Hiring and layoff (firing) decisions are made at the beginning of each month, and associated costs are charged at that time. It costs the company $400 to hire and $800 to lay off a worker. The company incurs holding cost for the amount of ending inventory in each month, and incurs backorder cost at the end of each month for any unfilled orders. The company incurs $2 per month for holding one unit in inventory and $4 per unit backorder. 1 Prepare a level aggregate plan. Under this level aggregate plan, how…
The Yeasty Brewing Company Produces a popular local beer known as Iron Stomach. Beer sales are somewhat seasonal, and Yeasty is planning its production and workforce levels on March 31 for the next six months. The demand forecasts are as follows: month production days demand(in hundred of cases) April 14 75 May 20 100 June 24 200 July 26 140 August 20 100 September 18 50 As of March 31, Yeasty had 70 workers on the payroll. Over a period of 20 working days when there are 100 workers on the pay roll, Yeasty produced 10,000 cases of beer. The cost to hire each worker is $200 and the cost of laying off each worker is $400. Holding costs amount to 1 dollar per case per month. As of March 31, Yeasty expects to have 3,000 cases of beer in stock. It plans to start October with 3,500 cases on hand. a) Formulate the problem of planning Yeasty’s production levels as a linear program. b) Use Excel solver to solve the problem and give the solution (decision variables and…
Find the constant workforce plan for the eight mont and total cost ?

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