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Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed fo March will be held constant through May. However, government constraints put a maximur of 5,000 hours of overtime labor per month in April and May (zero overtime in February an March). If demand exceeds supply, then backorders occur. There are 110 workers on January 31. You are given the following demand forecast: February, 81,000; March, 66,000 April, 102,000; May, 42,000. Productivity is three units per worker hour, eight hours per day 25 days per month. Assume zero inventory on February 1. Costs are: hiring, $51 per new worker; layoff, $71 per worker laid off; inventory holding, $8 per unit-month; regular time labor, $8 per hour; overtime, $12 per hour; backorder, $16 per unit. Develop a production plan and calculate the total cost of this plan. Note: Assume any layoffs occur at beginning of next month. (Leave the cells blank, whenever zero (0) is required. Negative values should be indicated by a minus sign. Round your answers to the nearest whole number.) Forecast Beginning inventory Production required Production hours required Regular workforce Regular production Overtime hours Overtime production Total production Ending inventory Ending backorders Workers hired Workers laid off February 81,000 0 81,000 27,000 110 22,000 0 0 22,000 -59,000 59,000 0 March 66,000 -59,000 66,000 22,000 110 22,000 0 0 22,000 -103,000 44,000 0 0 April 102,000 -103,000 102,000 34,000 110 22,000 4,000 26,000 -179,000 -179,000 76,000 60 0 May 42,000 -17,900 42,000 14,000 110 22,000 0 0 22,000 -199,000 20,000 0 0

Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed fo March will be held constant through May. However, government constraints put a maximur of 5,000 hours of overtime labor per month in April and May (zero overtime in February an March). If demand exceeds supply, then backorders occur. There are 110 workers on January 31. You are given the following demand forecast: February, 81,000; March, 66,000 April, 102,000; May, 42,000. Productivity is three units per worker hour, eight hours per day 25 days per month. Assume zero inventory on February 1. Costs are: hiring, $51 per new worker; layoff, $71 per worker laid off; inventory holding, $8 per unit-month; regular time labor, $8 per hour; overtime, $12 per hour; backorder, $16 per unit. Develop a production plan and calculate the total cost of this plan. Note: Assume any layoffs occur at beginning of next month. (Leave the cells blank, whenever zero (0) is required. Negative values should be indicated by a minus sign. Round your answers to the nearest whole number.) Forecast Beginning inventory Production required Production hours required Regular workforce Regular production Overtime hours Overtime production Total production Ending inventory Ending backorders Workers hired Workers laid off February 81,000 0 81,000 27,000 110 22,000 0 0 22,000 -59,000 59,000 0 March 66,000 -59,000 66,000 22,000 110 22,000 0 0 22,000 -103,000 44,000 0 0 April 102,000 -103,000 102,000 34,000 110 22,000 4,000 26,000 -179,000 -179,000 76,000 60 0 May 42,000 -17,900 42,000 14,000 110 22,000 0 0 22,000 -199,000 20,000 0 0

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
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Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed fo March will be held constant through May. However, government constraints put a maximur of 5,000 hours of overtime labor per month in April and May (zero overtime in February an March). If demand exceeds supply, then backorders occur. There are 110 workers on January 31. You are given the following demand forecast: February, 81,000; March, 66,000 April, 102,000; May, 42,000. Productivity is three units per worker hour, eight hours per day 25 days per month. Assume zero inventory on February 1. Costs are: hiring, $51 per new worker; layoff, $71 per worker laid off; inventory holding, $8 per unit-month; regular time labor, $8 per hour; overtime, $12 per hour; backorder, $16 per unit. Develop a production plan and calculate the total cost of this plan. Note: Assume any layoffs occur at beginning of next month. (Leave the cells blank, whenever zero (0) is required. Negative values should be indicated by a minus sign. Round your answers to the nearest whole number.) Forecast Beginning inventory Production required Production hours required Regular workforce Regular production Overtime hours Overtime production Total production Ending inventory Ending backorders Workers hired Workers laid off February 81,000 0 81,000 27,000 110 22,000 0 0 22,000 -59,000 59,000 0 March 66,000 -59,000 66,000 22,000 110 22,000 0 0 22,000 -103,000 44,000 0 0 April 102,000 -103,000 102,000 34,000 110 22,000 4,000 26,000 -179,000 -179,000 76,000 60 0 May 42,000 -17,900 42,000 14,000 110 22,000 0 0 22,000 -199,000 20,000 0 0
Transcribed Image Text:Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed fo March will be held constant through May. However, government constraints put a maximur of 5,000 hours of overtime labor per month in April and May (zero overtime in February an March). If demand exceeds supply, then backorders occur. There are 110 workers on January 31. You are given the following demand forecast: February, 81,000; March, 66,000 April, 102,000; May, 42,000. Productivity is three units per worker hour, eight hours per day 25 days per month. Assume zero inventory on February 1. Costs are: hiring, $51 per new worker; layoff, $71 per worker laid off; inventory holding, $8 per unit-month; regular time labor, $8 per hour; overtime, $12 per hour; backorder, $16 per unit. Develop a production plan and calculate the total cost of this plan. Note: Assume any layoffs occur at beginning of next month. (Leave the cells blank, whenever zero (0) is required. Negative values should be indicated by a minus sign. Round your answers to the nearest whole number.) Forecast Beginning inventory Production required Production hours required Regular workforce Regular production Overtime hours Overtime production Total production Ending inventory Ending backorders Workers hired Workers laid off February 81,000 0 81,000 27,000 110 22,000 0 0 22,000 -59,000 59,000 0 March 66,000 -59,000 66,000 22,000 110 22,000 0 0 22,000 -103,000 44,000 0 0 April 102,000 -103,000 102,000 34,000 110 22,000 4,000 26,000 -179,000 -179,000 76,000 60 0 May 42,000 -17,900 42,000 14,000 110 22,000 0 0 22,000 -199,000 20,000 0 0
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