Question: In the plant, standards indicate that one worker can assemble 200 computers per month. It costs about $500 to produce a computer.Holding one computer in
In the plant, standards indicate that one worker can assemble 200 computers per month. It costs about $500 to produce a computer.Holding one computer in inventory for a month costs $50. Workers earn $700 per month and can be hired for $80, fired for $150. Currently, there are 5workers in the company and 100 computers in the inventory. Company needs to carry min inventory of 100 at the end of May.
a. Develop a minimum inventory plan. What is the total cost?
| Month | Demand | |||||||||
| Jan | 800 | |||||||||
| Feb | 750 | |||||||||
| Mar | 900 | |||||||||
| Apr | 800 | |||||||||
| May | 750 |
Total Cost= ??
b. Develop a constant work force plan with no backorders. What is the total cost? Total Cost= ??
| Month | Demand | |||||||||
| Jan | 800 | |||||||||
| Feb | 750 | |||||||||
| Mar | 900 | |||||||||
| Apr | 800 | |||||||||
| May | 750 |
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