Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
11th Edition
ISBN: 9780135639221
Author: Jay Heizer, Barry Render
Publisher: PEARSON+
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Chapter 13, Problem 7P

Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data:

Chapter 13, Problem 7P, Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through , example  1

Chapter 13, Problem 7P, Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through , example  2

Chapter 13, Problem 7P, Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through , example  3

*No costs are incurred for unmet demand, but unmet demand (backorders) must be handled in the following period. If half or more of a worker is needed, round up.

**Note that there is no holding cost for June.

What will each of the two following strategies cost?

a) Vary the workforce so that production meets demand. Chua had eight workers on board in June.

b) Vary overtime only and use a constant workforce of eight.

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