Question: A local semiconductor firm, Superchip, is planning its workforce and production levels over next year. The firm makes a variety of microprocessors and uses sales

A local semiconductor firm, Superchip, is planning its workforce and production levels over next year. The firm makes a variety of microprocessors and uses sales dollars as its aggregate production measure. Based on orders received and sales forecasts provided by the marketing department, the estimate of dollar sales (in $10,000) for the next year by month is as follows: Month January February March April May June July August September October November December Production Days 221621192320241219222016 Predicted Demand 340380220100490625375310175145120165 Inventory holding cost is $0.25 per dollar per year. It is anticipated that there will be 675 workers on the payroll at the end of current year and inventories will amount to $120,000. The firm would like to have at least $100,000 of inventory at the end of Dec. next year. It is estimated that each worker accounts for an average of $60,000 of production per year (assume that one year consists of 250 working days). The cost of hiring a new worker is $200, and the cost of laying off a worker is $400.(a) Determine the minimum constant workforce that will meet the predicted demand for the coming year, and evaluate the cost of this plan.

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