Wilbo, Inc. has the following information available. Regular output costs $12 per unit; Overtime costs $20...

 

  

Transcribed Image Text:

Wilbo, Inc. has the following information available. Regular output costs $12 per unit; Overtime costs $20 per unit; Subcontracted parts cost $25 per unit; Backorders cost $12 per unit per period; Holding cost is $2 per unit per period on average inventory. Beginning inventory is zero. Each worker can produce 50 parts per period on regular time. Wilbo currently has 8 workers. Overtime is limited to 50 units/per period. No workers can be hired or laid off unless at least two workers need to be hired or laid off. Hiring cost is $1000/worker, layoff cost is $750 per worker. a. Construct a level plan allowing inventory and backorders (15 points) b. Determine the costs of the level plan (5 points) c. Construct a chase plan (15 points) d. Determine the cost of the chase plan (5 points) a. Level Plan Period 4. 5. Forecast 400 450 400 800 450 Output: Regular Overtime Subcontract Hire/Layoff Output-Forecast Inventory: Beginning Ending Average Backorders b. Level plan cost: C. Chase Plan Period 3 4. Forecast 400 450 400 800 450 Output: Regular Overtime Subcontract Hire/Layoff Output-Forecast Inventory Beginning Ending Average Backorders d. Chase plan cost: Wilbo, Inc. has the following information available. Regular output costs $12 per unit; Overtime costs $20 per unit; Subcontracted parts cost $25 per unit; Backorders cost $12 per unit per period; Holding cost is $2 per unit per period on average inventory. Beginning inventory is zero. Each worker can produce 50 parts per period on regular time. Wilbo currently has 8 workers. Overtime is limited to 50 units/per period. No workers can be hired or laid off unless at least two workers need to be hired or laid off. Hiring cost is $1000/worker, layoff cost is $750 per worker. a. Construct a level plan allowing inventory and backorders (15 points) b. Determine the costs of the level plan (5 points) c. Construct a chase plan (15 points) d. Determine the cost of the chase plan (5 points) a. Level Plan Period 4. 5. Forecast 400 450 400 800 450 Output: Regular Overtime Subcontract Hire/Layoff Output-Forecast Inventory: Beginning Ending Average Backorders b. Level plan cost: C. Chase Plan Period 3 4. Forecast 400 450 400 800 450 Output: Regular Overtime Subcontract Hire/Layoff Output-Forecast Inventory Beginning Ending Average Backorders d. Chase plan cost:

Answer rating: 100% (QA)

Part A Level Production Plan Total demand 2500 Average demand per month 25005 500 Current level of t... View the full answer