Develop a production schedule to produce the exact production requirements by va
ID: 455195 • Letter: D
Question
Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem.
The monthly forecasts for Product X for January, February, and March are 920, 1,560, and 1,270, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 400 units.
Storage cost is $5 per unit per month based on ending inventory level, standard pay rate is $8 per hour, hiring and training cost is $110 per worker, layoff cost is $210 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 44 workers and that they work 8 hours per day. (Leave no cells blank - be certain to enter "0" wherever required. Input all values as positive values. Round Workers Required up to next higher whole number. Round all other variables to nearest whole number.)
Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem.
The monthly forecasts for Product X for January, February, and March are 920, 1,560, and 1,270, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 400 units.
Storage cost is $5 per unit per month based on ending inventory level, standard pay rate is $8 per hour, hiring and training cost is $110 per worker, layoff cost is $210 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 44 workers and that they work 8 hours per day. (Leave no cells blank - be certain to enter "0" wherever required. Input all values as positive values. Round Workers Required up to next higher whole number. Round all other variables to nearest whole number.)
January February March Forecast Safety stock Beginning inventory Net production required Workers required 920 1,560 1,270 Laid off Actual production Ending inventory January February March Labor Inventory Hiring Layoff Total TotalExplanation / Answer
January February March Forecast a 920 1560 1270 Working Days b 22 19 21 Safety stock c = a/2 460 780 635 Beginning inventory d = j+c 400 466 790 Net production required e = a+c-d 980 1874 1115 Workers required (Note 1) f 56 124 67 Hired (Note 1) g 12 68 0 Laid off (Note 1) h 0 0 57 Actual Production i = b*f*8*0.1 986 1885 1126 Ending Inventiry j = i - e 6 10 11 Total Labor Hours k = b*g*8 9856 18848 11256 January February March Labor cost - @ $8 per hour l = $8 * k $78,848 $150,784 $90,048 Inventory cost - @ $5 on Ending Inventory m = $5*j $30 $50 $55 Hiring cost - @ $110 per labor n = $110*g $1,320 $7,480 $0 Layoff cost - @ $210 per labor o = $210*h $0 $0 $11,970 Total $80,198 $158,314 $102,073 Total $340,585 Worker Productivity - 0.1 unit per hour # Workers = 44 Work hours = 8 per day January February March Production Required a 980 1874 1115 Labor Productivity per labor per day (8*0.1) b 0.8 0.8 0.8 # days c 22 19 21 Monthly Productivity per Labor d = b*c 17.6 15.2 16.8 Workers Required e = a/d 56 124 67 Workforce in system f 44 56 124 Hired / (Laid Off) g = e-f 12 68 (57)
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