Question

You manage a consulting firm down the street from Michel Carrigg, Inc., and to get your foot in the door, you have told Mr. Carrigg that you can do a better job at aggregate planning than his current staff. He said, “Fine. You do that, and you have a 1-year contract.” You now have to make good on your boast using the data in problem. You decide to hire 5 workers in August and 5 more in October.
In problem 13-7, Michael Carrigg, Inc., is disk manufacturer in need of an aggregate plan for July through December. The company has gathered the following data:
Costs________________
Holding cost ........ $8/disk/month
Subcontracting........ $80/disk
Regular-time labor...... $12/hour
Overtime labor........ $18/hour for hours above
8 hours/worker/day
Hiring cost......... $40/worker
Layoff cost.......... $80/worker
Demand*_________
July ......... 400
Aug......... 500
Sept......... 550
Oct......... 700
Nov......... 800
Dec......... 700
Other Data__________________________________________
Current workforce (June) ........... 8 people
Labor-hours/disk ............. 4 hours
Workdays/month ............. 20 days
Beginning inventory ............. 150 disks**
Ending inventory .............. 0 disks



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  • CreatedJuly 23, 2013
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