Use the following data to solve the first seven problems. Problem Data Cost data Regular-time labor cost
Question:
Use the following data to solve the first seven problems.
Problem Data
Cost data
Regular-time labor cost per hour $10.00
Overtime labor cost per hour $15.00
Subcontracting cost per unit (labor only) $84.00
Holding cost per unit per period $10.00
Back-order cost per unit per period $20.00
Hiring cost per employee $600.00
Firing cost per employee $450.00
Capacity data
Beginning workforce 210 employees
Beginning inventory 400 units
Labor standard per unit 6 hours
Regular time available per period 160 hours
Overtime available per period 32 hours
Subcontracting maximum per period 1000 units
Subcontracting minimum per period 500 units
Demand data Period 1 6000 units
Period 2 4800 units
Period 3 7840 units
Period 4 5200 units
Period 5 6560 units
Period 6 3600 units
.
The backpack company produces a line of backpacks. The manager, Jill Nicholas, Is interested in using a level aggregate plan. Inventories and backorders will be used to handle demand fluctuations. She has asked you to develop such a plan.
(a) Calculate the aggregate production rate.
(b) Calculate the appropriate workforce given the aggregate production rate.
(c) Show what would happen if this plan were implemented.
(d) Calculate the costs of this plan.
(e) Evaluate the plan in terms of cost, customer service, operations, and human resources.
Please answer in Microsoft word format
Expert Answer:
Solution A Aggregate production rate Demand Beg Inventory Number of periods 5600 per period B Wo... View the full answer
