Find the total cost of plan

Assignment Help Operation Management

Reference no: EM13742287 , Length: 1

You are to plan production for a four-month period: February through May. For February and March, you should produce to the exact demand forecast. During February and March, you will follow a matching strategy and hire and layoff the works as required. For April and May, you should use overtime and inventory with a stable workforce. Stable means that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May. There is no overtime allowed in February and March. If demand exceeds supply, then backorders occur. If there is excess capacity in May, the workers are paid but there is no work performed hence there are no extra units produced in May. There are 100 workers on January 31. You are given the following demand forecast

February - 80,000

March - 64,000

April - 100,000

May - 40,000

Productivity is four units per worker hour. Each worker works eight hours per day, 20 days per month. Assume zero inventory on February

1. There is to be no inventory at the end of May. Hiring costs are $50 per worker, while layoff costs are $70 per worker. The inventory holding cost is $10 per unit per month based on the number of units in inventory at the end of the month. Straight time labor is $10 per hour and overtime is 150% of the straight time labor rate. Backorder costs are $20 per unit per month.

Find the total cost of this plan.

Reference no: EM13742287

Questions Cloud

Manufacturing operations and planning : Discuss one to two (1-2) benefits of the planning stage for managers. Next, describe your planning process at work or school. Your response should include how you know when you need to develop a plan

Write an essay on the pere du halde : Write an essay on the Pere du Halde: Teaching Science to the Manchu Emperor, c. 1680. What type of document is this? Who is the intended audience of the document? What are the main points of the document?

What is the function of amylase : What were your controls for this experiment? What did they demonstrate? Why was saliva included in this experiment? What is the function of amylase? What does amylase do to starch

The tree trimming project case : Read through the Tree Trimming Project case. This case refers to the earned value (EV) of the owner, Will Fence's Tree Trimming business. Will briefly describes his techniques for EV. Based on the description provided in the case, is Will using EV

Find the total cost of plan : You are to plan production for a four-month period: February through May. For February and March, you should produce to the exact demand forecast

How was europeans'' insistence on the growth of cash crops : How was Europeans' insistence on the growth of cash crops, such as cotton a main cause of inadequate food supplies in Africa during European colonization?

Assess the overall effectiveness of your team : Write a reflection on your team project that addresses the following. Assess the overall effectiveness of your team. How did the team's dynamics contribute to both the success and the challenges of creating an implementation plan for your innovati..

Write annotated bibliography on the fugitive slave act : Annotated Bibliography for 4 sources: The Fugitive Slave Act and Levi Coffin's Underground Railroad Station

Which interval between oil changes would you select : Which interval between oil changes would you select for a fleet of five automobiles? Base this recommendation on the economics as presented.

User Account

All Pages