Problem 13-2 Neal Industries manufactures blue jeans for the teen market. The S&OP team has agreed upon a demand forecast for the following year, as shown below. The company begins with 1,200,000 jeans in safety stock and desires to maintain this level consistently (and end with this level), assume that the overtime production wage rate is $30 per hour. Quarter 1 Demand 6,000,000 8,400.000 15,000,000 12,600,000 Current workforce Average output per worker Inventory holding cost Regular wage rate Regular production hours Hiring cost Firing/layoff cost Beginning inventory Quarter 1 2 3 4 Total Demand 6.000.000 8,400,000 15,000,000 š 12,600,000 42,000,000 300 workers 20,000 jeans per quarter 0.10 pair per quarter a. Develop a chase plan using a stable workforce of 300 workers. (Leave no cells blank-be certain to enter "0" wherever required.) Overtime Ending Regular Production Production Inventory 20 per hour 500 hours per quarter 340 per worker 250 per worker S S $1,200,000 b. Compute the cost of a chase plan using a stable workforce of 300 workers. Workers Required Hire Fire layoff

Problem 13-2 Neal Industries manufactures blue jeans for the teen market. The S&OP team has agreed upon a demand forecast for the following year, as shown below. The company begins with 1,200,000 jeans in safety stock and desires to maintain this level consistently (and end with this level), assume that the overtime production wage rate is $30 per hour. Quarter 1 Demand 6,000,000 8,400.000 15,000,000 12,600,000 Current workforce Average output per worker Inventory holding cost Regular wage rate Regular production hours Hiring cost Firing/layoff cost Beginning inventory Quarter 1 2 3 4 Total Demand 6.000.000 8,400,000 15,000,000 š 12,600,000 42,000,000 300 workers 20,000 jeans per quarter 0.10 pair per quarter a. Develop a chase plan using a stable workforce of 300 workers. (Leave no cells blank-be certain to enter "0" wherever required.) Overtime Ending Regular Production Production Inventory 20 per hour 500 hours per quarter 340 per worker 250 per worker S S $1,200,000 b. Compute the cost of a chase plan using a stable workforce of 300 workers. Workers Required Hire Fire layoff

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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