hw4 Q2

40 2 Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,100; winter 8100, spring, 7300 summer, 12,300. Inventory at the beginning of falls 505 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall Relevant costs are hiring. $100 for each templayoft $200 for each worker laid oft, Inventory holding $5 per unit quarterbackorder $10 per unit regular time. $5 per hour overtime. Se per hout Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quartet produce to the full output of your regular worldorce, even if that results in excess production. In Winter and Spring, use overtime only needed to meet the production required in that quarter. Do not use overtime to bulld excess inventory in prior seasons expressly for the purpose of reducing the number of temp workers in Summer (Leave the cells blank, whenever zero (O) is required. Negative values should be Indicated by a minus sign. Round up "Number of temp workers, Workers hired and Workers laid off to the next whole number and all other answers to the nearest whole number.) Sook Fall 10,100 Winter 3.100 Spring 7.100 Summer 12.100 Forecast Beginning levertory Production required Production hour required Production house Temp whouse Totalhos A production Ending inventory Wed Wood MacBook Air BO COU 11 17 F3 " FE A * # 3 N $ 4 % 5 & 7 ON 8 9 0 Q W E R R T Y U 0 P A S DF G is Actual production Ending inventory Workers hired Workers laid off eBook Hint ferences Fall Winter Spring Summer Regular time Overtime Inventory Backorder Hiring Layoff Total Annual cost 0 $ os 0 0 $ $ 0 MC Graw DI