Month Month (t) 1 How would you plan the 8- month time horizon to reduce cost? Propose your own strategy Use spreadsheet available below Explain to your stakeholders how you came up with this strategy Use strategies not discussed in class Calculate the cost of your strategy Net Working Demand days 220 22 280 16 2. 3 460 23 4 190 20 January February March April May June July August 5 310 21 6 145 22 7 110 21 8 225 22 Assumptions & Costs: Holding Cost (per unit per month): $8.50 Hiring Cost per worker: $800 Firing Cost per worker: $1,250 Payroll Cost: $75/worker/day Shortage Cost: $50 unit short/month Assume that the work force at end of Dec was 40 B C D E F G H. I K L M 200 1 2 Starting inventory 3 Ending inventory 4 100 5 6 K= 0.342105263 units/worker*day 8.5 800 1250 7 Holding cost per unit per month 8 hiring cost per worker 9 Firing cost per worker 10 Payroll costs 11 Shortage cost 12 13 Number of workers: 75 50 Forecasted Demand Working days Net Demand 0 Number of workers Production plan (based on workers) Cumulative production Month Inventory Workers hired Month (t) 0 Workers fired 0 1 420 22 2 220 280 460 280 460 16 Cumulative Net Demand 0 220 500 960 1150 1460 1605 3 23 4 190 14 15 16 January 17 February 18 March 19 April 20 May 21 June 22 July 23 August 24 25 20 190 310 5 310 21 6 145 22 145 110 7 110 21 1715 1940 8 125 225 22