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The PPS Company assembles home air conditioning units for the local market. The projected demand over the first eight months is:

The PPS Company assembles home air conditioning units for the local market. The projected demand over the first eight months is:

Practical Management Science
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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Find the constant workforce plan for the eight mont and total cost ? 

The PPS Company assembles home air conditioning units for the local market. The projected demand over the first eight months is: Month Workdays Forecasted Demand in Aggregate Units 1800 January February March 21 19 2465 20 3387 April May June 20 4045 22 4065 21 3085 July August 20 3450 21 2765 A normal work-day is eight hours. Hiring costs are OMR 580 per worker and firing costs are OMR 1550 per worker. Holding costs are OMR 3.25 per aggregate unit held per month, and backorder cost is OMR 33 per aggregate unit per month. It requires an average of 45 minutes for one worker to assemble one air conditioning unit. The ending inventory in December of the previous year was 125 units, and the manager wants to have at least 80 units on hand in inventory at the end of June. The workforce at the end of December in the previous year was 14 workers. Workers are paid OMR 7.5 per hour for regular time labor. Overtime labor costs OMR 9 per worker per hour, and the maximum overtime that is allowed is 3 hours per worker each day.
Transcribed Image Text:The PPS Company assembles home air conditioning units for the local market. The projected demand over the first eight months is: Month Workdays Forecasted Demand in Aggregate Units 1800 January February March 21 19 2465 20 3387 April May June 20 4045 22 4065 21 3085 July August 20 3450 21 2765 A normal work-day is eight hours. Hiring costs are OMR 580 per worker and firing costs are OMR 1550 per worker. Holding costs are OMR 3.25 per aggregate unit held per month, and backorder cost is OMR 33 per aggregate unit per month. It requires an average of 45 minutes for one worker to assemble one air conditioning unit. The ending inventory in December of the previous year was 125 units, and the manager wants to have at least 80 units on hand in inventory at the end of June. The workforce at the end of December in the previous year was 14 workers. Workers are paid OMR 7.5 per hour for regular time labor. Overtime labor costs OMR 9 per worker per hour, and the maximum overtime that is allowed is 3 hours per worker each day.
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