Assignment 2 of 3: How many workers do I need? LAWNKING Aggregate Planning BASIC INPUT DATA DATE: ====== ===== MONTHLY PROD. RATE (UNITS/WORKER/MONTH): BEGINNING INVENTORY (UNITS): BEGINNING NUMBER OF WORKERS: HIRING COST PER WORKER LAYOFF COST PER WORKER COST OF FULLY ASSEMBLED PRODUCT (AVE $) INVENTORY HOLDING COST (% of value per year): INVENTORY SHORTAGE COST (COST/UNIT SHORT): REGULAR HOURLY WAGE RATE: OVERTIME HOURLY WAGE RATE OPERATING TIME: (HOURS/WEEK) MONTHS: Jan Feb Mar Sales Forecast Number of Workers Units Produced: Ending Inventory 1,225 $0 Reg. Labor Costs: Change in # workers. from last month -80 Hiring Cost: $0 Layoff Cost: $120,000 $5,116 $0 MONTHLY TOTAL COS' $125,116 End-Inv. Hold. Cost: nd-Inv. Short. Cost: 18-May 1,225 1,225 $0 $0 $0 $0 $0 $5.116 $0 $0 $5,116 $0 $5,116 $5,116 $181,397 TOTAL COST OF THIS STRATEGY 0 Refer to the LawnKing Case study in Part Seven of the text, with the updated data shown here. Use your BEST forecasted sales computed previously in Assignment 1 for this assignment. Then, compute all three options shown below. Finally, compare them all on the last sheet. OPTIONS: 1) Chase Strategy 82 UNITS 1,225 UNITS 2) Level Strategy 80 WORKERS 3) Mixed Strategy $1,200 PER HIRE $1,500 PER FIRE $179 PER UNIT 28% ANNUALLY Notes on Chase Strategy - only make as many items as needed each month $25.00 PER BACKORDER PER MONTH $15.30 PER WORKER end the year with the same number in inventory as you started -only full-time employees allowed (i.e. whole-number of workers) $23.00 PER WORKER 40 HOURS PER WEEK Apr May Jun Jul Aug Sep Oct Nov 0 1,225 $0 $0 $0 $5,116 $0 $5,116 0 1,225 $0 $0 $0 $5,116 $0 $5,116 0 1,225 $0 $0 $0 $5,116 $0 $5,116 0 1,225 $0 $0 $0 $5,116 $0 $5,116 0 1,225 $0 1,225 $0 0 1,225 $0 0 sn $0 $0 $0 $0 $5,116 $5,116 $0 $5,116 $0 $0 $0 $5,116 $5,116 $5,116 0 1,225 $0 $0 $0 $5,116 $0 $5,116 0 Dec 1,225 $0 0 $0 $0 $5,116 $0 $5,116 ANNUAL 0 0 Assignment 2 of 3: How many workers do I need? LAWNKING Aggregate Planning BASIC INPUT DATA DATE: ====== ===== MONTHLY PROD. RATE (UNITS/WORKER/MONTH): BEGINNING INVENTORY (UNITS): BEGINNING NUMBER OF WORKERS: HIRING COST PER WORKER LAYOFF COST PER WORKER COST OF FULLY ASSEMBLED PRODUCT (AVE $) INVENTORY HOLDING COST (% of value per year): INVENTORY SHORTAGE COST (COST/UNIT SHORT): REGULAR HOURLY WAGE RATE: OVERTIME HOURLY WAGE RATE OPERATING TIME: (HOURS/WEEK) MONTHS: Jan Feb Mar Sales Forecast Number of Workers Units Produced: Ending Inventory 1,225 $0 Reg. Labor Costs: Change in # workers. from last month -80 Hiring Cost: $0 Layoff Cost: $120,000 $5,116 $0 MONTHLY TOTAL COS' $125,116 End-Inv. Hold. Cost: nd-Inv. Short. Cost: 18-May 1,225 1,225 $0 $0 $0 $0 $0 $5.116 $0 $0 $5,116 $0 $5,116 $5,116 $181,397 TOTAL COST OF THIS STRATEGY 0 Refer to the LawnKing Case study in Part Seven of the text, with the updated data shown here. Use your BEST forecasted sales computed previously in Assignment 1 for this assignment. Then, compute all three options shown below. Finally, compare them all on the last sheet. OPTIONS: 1) Chase Strategy 82 UNITS 1,225 UNITS 2) Level Strategy 80 WORKERS 3) Mixed Strategy $1,200 PER HIRE $1,500 PER FIRE $179 PER UNIT 28% ANNUALLY Notes on Chase Strategy - only make as many items as needed each month $25.00 PER BACKORDER PER MONTH $15.30 PER WORKER end the year with the same number in inventory as you started -only full-time employees allowed (i.e. whole-number of workers) $23.00 PER WORKER 40 HOURS PER WEEK Apr May Jun Jul Aug Sep Oct Nov 0 1,225 $0 $0 $0 $5,116 $0 $5,116 0 1,225 $0 $0 $0 $5,116 $0 $5,116 0 1,225 $0 $0 $0 $5,116 $0 $5,116 0 1,225 $0 $0 $0 $5,116 $0 $5,116 0 1,225 $0 1,225 $0 0 1,225 $0 0 sn $0 $0 $0 $0 $5,116 $5,116 $0 $5,116 $0 $0 $0 $5,116 $5,116 $5,116 0 1,225 $0 $0 $0 $5,116 $0 $5,116 0 Dec 1,225 $0 0 $0 $0 $5,116 $0 $5,116 ANNUAL 0 0