Problem 13-6 JokersRWild makes playing cards in several different styles, but a "standard" deck of cards is used for planning purposes. The average worker at JokersRWild can make 10,000 sets of decks of cards per month at a cost of $3.10 per deck during regular production and $3.40 during overtime. The company currently employs 30 workers. Experience shows that it costs $1,550 to hire a worker and $1,550 to fire a worker. Inventory carrying cost is $.46 per deck per month. The beginning inventory is 48,000, and at least that amount is desired each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. April May June Month Demand January 200,000 February 210,000 March 200,000 500,000 510,000 780,000 a. Given the above demand estimate, develop a six-month production plan based on level production. (Leave no cells blank - be certain to enter "0" wherever required.) Answer is not complete. Level Production Plan Month Demand Regular Number of Workers Hire Fire layoff Production January February March April May June Total 200,000 210,000 200,000 500,000 510,000 780,000 2,400,000 400,000 400,000 400,000 400,000 400,000 400,000 2,400,000 Ending Inventory 248,000 438,000 638,000 538,000 428,000 48,000 2,338,000 40 10 0 0 0 0 0 10 0 0 0 0 0 0 0 b. Determine the cost of the level production plan. Total cost c. Develop a six-month production plan based on chase by using overtime (no workers will be fired and inventory increases if necessary). (Leave no cells blank - be certain to enter "0" wherever required.) Answer is not complete. Chase Production Plan - Using Overtime Month Demand Regular Production Overtime Inventory Number of Workers Fire layoff January February March April May June Total 0 0 0 d. Determine the cost of the chase production plan. Total cost 0 Hire 0 0 e. Develop a six-month production plan based on chase by changing workforce level. (Leave no cells blank - be certain to enter "0" wherever required.) X Answer is not complete. Chase Production Plan - Changing Workforce Level Month Demand Regular Production Ending Inventory Number of Workers Hire Fire layoff January February March April May June Total 0 0 0 0 0 f. Determine the cost of the chase production plan by changing workforce level. Total cost
