Question: Solve in excel and show all steps clearly and completely. Q 4 : Sky cell, a major cell phone manufacturer, is making production plans for
Solve in excel and show all steps clearly and completely.
Q: Sky cell, a major cell phone manufacturer, is making production plans for the coming year. Sky cell has worked with its customers the service providers to come up with forecasts of monthly requirements in thousands of phones as shown in Table Manufacturing is primarily an assembly operation, and capacity is governed by the number of people on the
tableMonthsDemandJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
production line. The plant operates for days a month, eight hours each day. One person can assemble a phone every minutes. Workers are paid euros per hour and a percent premium for overtime. The plant currently employs workers. Component costs for each cell phone total euros. Given the rapid decline in component and finished product prices, carrying inventory from one month to the next incurs a cost of euros per phone per month. Sky cell currently has a nolayoff policy in place. Overtime is limited to a maximum of hours per month per employee. Assume that Sky cell has a starting inventory of units and wants to end the year with the same level of inventory.
a Assuming no backlogs, no subcontracting, and no new hires, what is the optimum production schedule? What is the annual cost of this schedule?
b Is there any value for management to negotiate an increase of allowed overtime per employee per month from hours to
c Reconsider parts a and b if Sky cell starts with only employees. Reconsider parts a and b if Sky cell starts with employees. What happens to the value of additional overtime as the workforce size decreases?
d Consider part a for the case in which Sky cell aims for a level production schedule such that the quantity produced each month does not exceed the average demand over the next months by units. Thus, monthly production, including overtime, should be no more than What would be the cost of this level production schedule? What is the value of overtime flexibility?
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