TYPE OUT SOLUTION IN MICROSOFT WORD 13.2 Develop another plan for the Mexican roofing manufacturer described in Examples 1. A) For this plan, plan 5, the firm wants to maintain a constant workforce of eight using overtime to meet remaining demand. Is this plan preferable? B) The same roofing manufacturer in Examples 1 to 4 and Solved Problem 13.1 has yet a sixth plan. A constant workforce of seven is selected, with the remainder of demand filled by subcontracting. C) Is this PLAN 6 better than plans 1-5? NOTE: AVERAGE REQUIREMENT = 50 UNITS PER DAY FOR THE 6-MONTH PERIOD THIS IS EXAMPLE 1 AS STATED IN THE QUESTION A Juares, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the month period January to June are presented in Table 112. The firm would like to begin development of an aggregate plan TABLE 13.2 Monthly Forecasts MONTH ERECHO DEMAND DEMAND PEN DAY PRODUCTOR DAYS COMPTED lan 900 22 41 700 18 39 Mar 300 21 3 AL 1,200 21 57 May 1,500 22 6 100 20 200 134 55 BELOW IS COST INFORMATION TABLE. PLAN 1, & 4 FOR REFERENCE. TABLE 133 Cost Information Inventory care Subcontracting cost peront Aage pay rate Overtime pay wte bor hours to producent Cost of increasing daily production te thing and trang Cost of decreasing daly production rate Cuyotte 35 per unit per mom 520 per unit $10 per hoor 50 per day 5 17 per hour love hour per day 16 hours per 5300 per unit 5600 per ANALYSIS OF PLAN 1 APPROACH Here we assume that 50 units are produced per day and that we have a constant workforce, no overtime or idle time, no safety stock, and no subcontractors. The firm accumulates inventory during the stack period of demand, January through March, and depletes it during the higher demand warm scan. Apeil through June. We awume beginning inventory and planned ending inventory SOLUTION We construct the table below and accumulate the cost MONTH lan Feb Mar Apr May June PRODUCTION DAYS 22 1e 21 21 22 20 PRODUCTION DIMANO AT SOURIS PER DAY FORECAST 1.100 900 900 700 1,050 800 1,050 1.200 1,100 1,500 1,000 1.100 MONTHLY ENDING INVENTORY CHANGE VENTORY 200 200 +200 400 250 650 - 150 500 -400 100 -100 1.850 Total units of inventory carried over from one month to the next month - 1.850 units Workforce required to produce 56 units per day - 10 worker Because each unit requires 1.6 labor hours to produce, each worker can make 5 units in an 8-hour day Therefore, to produce 50 units. 10 workers are needed Finally, the costs of plantare computed as follows $ 9,250 99,200 COST Inventory canying Regume labor Other coloring Layoffs, subcontracting Total cost CALCULATIONS (-150 units carried x 55 per un (-10 workers $80 per day x 124 days 5108.450 Plan 4 COSTS (WORKFORCE OF 8 PLUS OVERTIME) Carrying cost $ 400 (80 units carried $5/unit) Regular labor 79,360 (8 workers * $80/day x 124 days) Overtime 33,728 (1.984 hours x 517/hour) Hiring or firing 0 Subcontracting 0 Total costs $113,488 THE SOLUTION SHOULD LOOK LIKE BELOW (IN SUMMARY FIND THE TOTAL COSTS FOR PLAN 5 & 6) b) constant workforce Month Demand Prod Days Regular Production Subcontracting prod cost Subcontrading cost Jan 900 22 770 130 $123205 2.500 Fab 700 18 6.30 70 $ 10,000 $ 1.400 Mar 300 21 735 65 $11.7605 1.300 Apr 1200 21 735 465 $ 11,760 9,300 May 1500 22 770 730 $ 12,320 14.000 un 1100 20 700 400 $11.2005 3.000 6200 124 total $69.440s 37 200 Total Cost 5 106,640