A local canning company sells canned vegetables to a supermarket chain in the Minneapolis area. A typical case of canned vegetables requires an average of 0.2 day of labor to produce. The aggregate inventory on hand at the end of June is 800 cases. The demand for the vegetables can be accurately predicted for about 18 months based on orders received by the firm. The predicted demands for the next 18 months are as follows: (given) The firm currently has 25 workers. The cost of hiring and training a new worker is $1,000, and the cost to lay off one worker is $1,500. The firm estimates a cost of $2.80 to store a case of vegetables for a month. They would like to have 1,500 cases in inventory at the end of the 18-month planning horizon. a. Develop a spreadsheet to find a plan that hires and fires workers monthly in order to minimize inventory costs. Determine the total cost of that plan as well.

A local canning company sells canned vegetables to a supermarket chain in the Minneapolis area. A typical case of canned vegetables requires an average of 0.2 day of labor to produce. The aggregate inventory on hand at the end of June is 800 cases. The demand for the vegetables can be accurately predicted for about 18 months based on orders received by the firm. The predicted demands for the next 18 months are as follows: (given) The firm currently has 25 workers. The cost of hiring and training a new worker is $1,000, and the cost to lay off one worker is $1,500. The firm estimates a cost of $2.80 to store a case of vegetables for a month. They would like to have 1,500 cases in inventory at the end of the 18-month planning horizon. a. Develop a spreadsheet to find a plan that hires and fires workers monthly in order to minimize inventory costs. Determine the total cost of that plan as well.

Name: A local canning company sells canned vegetables to a supermarket chain
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Description: A local canning company sells canned vegetables to a supermarket chain in the Minneapolis area. A typical case of canned vegetables requires an average of 0.2 day of labor to produce. The aggregate inventory on hand at the end of June is 800 cases. T

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 69P: The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon...

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