Henry, the operating manager, is attempting to put together an aggregate plan for the coming six months.
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Question:
Henry, the operating manager, is attempting to put together an aggregate plan for the coming six months. He has obtained a forecast of expected demand for the planning horizon as below. The department now has 55 full-time workers, each of whom can produce 2 units of output per day. They work for eight hours per day and the labour cost is $5 per hour. The material cost is $100 per unit and the inventory cost is $1.5 per unit per period. The subcontract cost is $160 per unit and backlog cost is $399 per unit per period. The hiring and firing cost for each employee is $150 and $189 respectively. Determine the total cost of the plan.
Period | 0 | 1 | 2 | 3 | 4 | 5 | 6 | Total |
Demand | 2900 | 3600 | 1500 | 2600 | 2200 | 3200 | ||
Working days | 22 | 19 | 21 | 21 | 22 | 20 | ||
Employees | 55 |
What is Economies of Scales?
Related Book For
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase
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