Question: Month 1 2 3 4 5 6 7 8 9 10 11 12 Demand 840 870 780 1230 1080 1140 1020 960 1080 960 1380

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Month 1 2 3 4 5 6 7 8 9 10 11 12 Demand 840 870 780 1230 1080 1140 1020 960 1080 960 1380 1620 Current inventory is 100 units, and you should not fall below this level if possible. (Treat it as a safety stock that should not be touched unless absolutely necessary.) You must end the year with an inventory of at least 100 units, and throughout the year you cannot have backorders. You currently have 36 production workers. Each is paid an average salary of $3000 per month on regular time, with up to 25% of overtime payable at 1.5 times the regular rate (time-and-a- half'). Each production worker accounts for 30 dryer units per month. Additional workers can be hired at a cost of $8000 per worker; workers can be laid off at a cost of $4500. These charges include training and severance costs as well as adjustments to the production line (for tooling, setup, line changes, and other overhead costs). Inventory holding costs are $40 per unit per month, based on the month-end inventory. a. Find a level workforce plan that allows for a production plan that satisfies all the demand without overtime. What is the total cost of this plan? b. Use a chase strategy that varies the workforce level without using overtime. What is the total cost of this plan? C. Propose a low-cost, mixed strategy and calculate its total cost. (Any strategy that improves on both the chase and level strategies is acceptable; no need to find the optimal schedule.)

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