1) One plant of a company assembles a model of a laser printer. Standards indicate that one worker can assemble five printers per day. This model of the laser printer costs about $350 to make, and the company figures it costs $5 to hold one printer in inventory for one month. Currently, there are 30 printers in inventory, and the inventory level at the end of December is planned to be 50 units. If a printer is backordered, the cost is $35 per unit per month. Currently, there are 12 workers. New workers can be hired at a cost of $500 per worker, and existing workers can be laid off at a cost of $750 per worker. Workers are paid $1500 per month. Develop the following production plans, and determine the best plan among them.

(a) Develop a production plan with chase strategy that seeks to maintain minimum inventory.

(b) Develop a production plan with constant workforce strategy assuming backorders are allowed and 12 workers are employed in each month.

(c) Develop a production plan with constant workforce strategy assuming backorders are not allowed.

(d) Which of the plans developed in parts (a), (b) and (c) is the best one?
 

Transcribed Image Text:

Month Jul Number of working days 21 Forecasted demand (units) 1020 Aug 22 950 Sep 21 800 Oct 23 1000 Nov 19 1250 Dec 20 650 Month Jul Number of working days 21 Forecasted demand (units) 1020 Aug 22 950 Sep 21 800 Oct 23 1000 Nov 19 1250 Dec 20 650

Answer rating: 100% (QA)

a Develop a Production Plan with Chase Strategy that Seeks to Maintain Minimum Inventory The chase strategy seeks to meet the demand by matching the production level ... View the full answer