Question: please explain formulas and each strategy so i can understand what is done please! thank you Name Question 1: The monthly forecast for Product-X for
please explain formulas and each strategy so i can understand what is done please! thank you
Name Question 1: The monthly forecast for Product-X for January, February and March are 1000,1500 and 1200 respectively. The safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February and 21 in March. The beginning inventory is 500 units. Manufacturing cost is $200 per unit, inventory holding is $3 per unit per month, standard pay rate $6 per hour, overtime is $9 per hour, hiring and training cost is $200 per worker, lay off cost is $300 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 50 workers from the previous period and that they work for 8 hours per day. a) Construct a production plan using constant workforce with variable inventory level and backordering strategy (marks 10) b) Construct a production plan with constant low workforce with subcontracting strategy (marks 1 . Name Question 1: The monthly forecast for Product-X for January, February and March are 1000,1500 and 1200 respectively. The safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February and 21 in March. The beginning inventory is 500 units. Manufacturing cost is $200 per unit, inventory holding is $3 per unit per month, standard pay rate $6 per hour, overtime is $9 per hour, hiring and training cost is $200 per worker, lay off cost is $300 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 50 workers from the previous period and that they work for 8 hours per day. a) Construct a production plan using constant workforce with variable inventory level and backordering strategy (marks 10) b) Construct a production plan with constant low workforce with subcontracting strategy (marks 1