Develop a production plan and calculate the annual cost for afirm whose demand forecast is fall, 10,300; winter, 8,200; spring,6,800; summer, 12,300. Inventory at the beginning of fall is 515units. At the beginning of fall you currently have 30 workers, butyou plan to hire temporary workers at the beginning of summer andlay them off at the end of summer. In addition, you have negotiatedwith the union an option to use the regular workforce on overtimeduring winter or spring only if overtime is necessary to preventstockouts at the end of those quarters. Overtime is notavailable during the fall. Relevant costs are hiring, $80 for eachtemp; layoff, $160 for each worker laid off; inventory holding, $5per unit-quarter; backorder, $10 per unit; straight time, $5 perhour; overtime, $8 per hour. Assume that the productivity is 0.5unit per worker hour, with eight hours per day and 60 days perseason. In each quarter, produce to the full output of your regularworkforce, even if that results in excess production. In Winter andSpring, use overtime only if needed to meet the production requiredin that quarter. Do not use overtime to build excess inventory inprior seasons expressly for the purpose of reducing the number oftemp workers in Summer. (Leave no cells blank - be certainto enter "0" wherever required. Negative values should be indicatedby a minus sign. Round up "Number of temp workers, Workers hiredand Workers laid off" to the next whole number and all otheranswers to the nearest whole number.) |
