Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for...

 

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Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day. You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua that you can do a better job at aggregate planning than her current staff. She said, "Fine. You do that, and you have a 1-year contract." To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Costs Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Month 0 June 1 July $9/disk drive/Month $80/disk drive $12 2 August 3 September 4 October 5 November 6 December $18/hour (above 8 hours) $40/worker $80/worker Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) Demand. 420 480 550 560 750 720 Other data Current workforce (June) 8 people Labor-hours/disk drive 4 hours Workdays/month Beginning Inventory Ending Inventory "Note that there is no holding cost for June. Beginning Inventory 150 20 days 150 disk drives 0 disk drives Units Produced Personnel on Hire / Layoff Staff 8 Ending Inventory Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day. You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua that you can do a better job at aggregate planning than her current staff. She said, "Fine. You do that, and you have a 1-year contract." To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Costs Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Month 0 June 1 July $9/disk drive/Month $80/disk drive $12 2 August 3 September 4 October 5 November 6 December $18/hour (above 8 hours) $40/worker $80/worker Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) Demand. 420 480 550 560 750 720 Other data Current workforce (June) 8 people Labor-hours/disk drive 4 hours Workdays/month Beginning Inventory Ending Inventory "Note that there is no holding cost for June. Beginning Inventory 150 20 days 150 disk drives 0 disk drives Units Produced Personnel on Hire / Layoff Staff 8 Ending Inventory

Answer rating: 100% (QA)

To tackle the aggregate planning problem for Consuelo Chua Inc we follow several steps to determine the production hiring and layoff decisions as well as inventory levels for each month from July to D... View the full answer