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 for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 80,640; March, 67,200; April, 100,280; May, 40,280. Productivity is four units per worker hour, eight hours per day, 21 days per month. Assume zero Inventory on February 1. Cost are: hiring, $50 per new worker, layoff, $70 per worker laid off, Inventory holding, $11 per unit-month; regular time labor, $12 per hour; overtime, $18 per hour; backorder, $22 per unit. Develop a production plan and calculate the total cost of this plan. Note: Assume any layoffs occur at beginning of next month. (Leav 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 80,640 March 67,200 April 100,280 May 40,280
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 for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 80,640; March, 67,200; April, 100,280; May, 40,280. Productivity is four units per worker hour, eight hours per day, 21 days per month. Assume zero Inventory on February 1. Cost are: hiring, $50 per new worker, layoff, $70 per worker laid off, Inventory holding, $11 per unit-month; regular time labor, $12 per hour; overtime, $18 per hour; backorder, $22 per unit. Develop a production plan and calculate the total cost of this plan. Note: Assume any layoffs occur at beginning of next month. (Leav 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 80,640 March 67,200 April 100,280 May 40,280
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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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 for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime
labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are
100 workers on January 31. You are given the following demand forecast: February, 80,640; March, 67,200; April, 100,280; May,
40,280. Productivity is four units per worker hour, eight hours per day, 21 days per month. Assume zero Inventory on February 1. Costs
are: hiring, $50 per new worker, layoff, $70 per worker laid off, Inventory holding, $11 per unit-month; regular time labor, $12 per hour;
overtime, $18 per hour; backorder, $22 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
Regular time
Overtime
Inventory
Backorder
Hiring
Layoff
Total
Total cost
February
S
February
80,640
0 S
March
0
March
69
67,200
April
April
100,280
0 $
$
May
0
0
May
40,280
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