A bowling ball manufacturer is considering two capacity plans for next year: level capacity with inventory and matching demand. The quarterly aggregate demand is shown below for the two plans. The labor standard is 1.6 hours per bowling ball, hiring cost is $600 per worker hired, layoff cost is $400 per worker laid off, carrying cost for finished goods is $5 per bowling ball per year, there is no beginning inventory for the first quarter, 83 workers are employed at the end of the 4th quarter of the previous year, and the company produces bowling balls 8 hours per day, 62 days per quarter. Based on the information given, which capacity plan would you recommend? Assume that the quarterly demand pattern repeats from year to year.
Answer to relevant QuestionsIn 1992 the state of California charged Sears Auto Centers with overcharging customers for unneeded or unperformed repairs. Sears agreed to a settlement that could cost as much as $20 million. Sears had compensated its ...Top Gun Records and several movie studios have decided to sign a revenue-sharing contract for DVDs. Each DVD costs the studio $2 to produce.The DVD will be sold to Top Gun for $3. Top Gun in turn prices a DVD at $15 and ...Crew Soccer Shoes Company is considering a change of their current inventory control system for soccer shoes. The information regarding the shoes is given below.Average demand = 200 pairs/weekLead time = 3 weeksOrder cost = ...The tourist center is open on weekends (Friday, Saturday, and Sunday). The owner-manager hopes to improve scheduling of part-time employees by determining seasonal relatives for each of these days. Data on recent traffic at ...Compare and contrast at least three work related characteristics of Hispanic and Anglo-American cultures.
Post your question