Question: Densepack is to plan workforce and production levels for the six-month period January to June. The firm produces a line of disk drives for
Densepack is to plan workforce and production levels for the six-month period January to June. The firm produces a line of disk drives for mainframe computers that are plug compatible with several computers produced by major manufacturers. Forecast demands over the next six months for a particular line of drives produced in the Milpitas, California, plant are 1,280, 640, 900, 1,200, 2,000, and 1,400. There are currently (end of December) 300 workers employed in the Milpitas plant. Ending inventory in December is expected to be 500 units, and the firm would like to have 600 units on hand at the end of June. Cost of hiring workers, cost of firing workers, and cost of holding inventory are as follows: CH Cost of hiring one worker $500, CF Cost of firing one worker = $1,000, C=Cost of holding one unit of inventory for one month = $80. K = Number of aggregate units produced by one worker in one day = 0.14653 We assume that there are 20, 24, 18, 26, 22, and 15 working days for January to June, respectively.
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To solve this problem we need to determine the workforce and production plan for each of the six months We will consider hiring and firing costs as we... View full answer
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