Problem 8-14 (Algo)

Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. The monthly forecasts for Product X for January, February, and March are 930, 1,550, and 1,220, respectively. 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. Beginning inventory is 550 units. Manufacturing cost is $190 per unit, storage cost is $6 per unit per month, standard pay rate is $4 per hour, overtime rate is $6 per hour, cost of stock-out is $9 per unit per month, marginal cost of subcontracting is $10 per unit, hiring and training cost is $280 per worker, layoff cost is $380 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 47 workers and that they work 8 hours per day. (Leave the cells blank, whenever zero (0) is required. Input all values as positive values. Round your answers to the nearest whole number.)

Problem 8-14 (Algo) Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. The monthly forecasts for Product X for January, February, and March are 930, 1,550, and 1,220, respectively. 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. Beginning inventory is 550 units. Manufacturing cost is $190 per unit, storage cost is $6 per unit per month, standard pay rate is $4 per hour, overtime rate is $6 per hour, cost of stock-out is $9 per unit per month, marginal cost of subcontracting is $10 per unit, hiring and training cost is $280 per worker, layoff cost is $380 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 47 workers and that they work 8 hours per day. (Leave the cells blank, whenever zero (0) is required. Input all values as positive values. Round your answers to the nearest whole number.) March January 930 February 1,550 1,220 Forecast Safety stock Beginning inventory Net production required Workers required Hired Laid off Actual production Ending inventory March January 930 February 1,550 1,220 Forecast Safety stock Beginning inventory Net production required Workers required Hired Laid off Actual production Ending inventory January February March Labor Inventory Hiring Layoff Total Total