What is the optimal production schedule for the year

Assignment Help Operation Management
Reference no: EM132189129

Frances, a company located in the Miluakee, is a major manufacturer of steel. the company is in the middle of the demand and supply planning exercise for the coming year and they need your help. Anticipated monthly demand from distributors over next 12 months is shown below.

                                    January            10,000             July                  30,000

                                    February          11,000             August            29,000

                                    March              15,000             September       21,000

                                    April                18,000             October           18,000

                                    May                 25,000             November       14,000

                                    June                 26,000             December        11,000

Capacity at this company is governed by the number of operators it hires. Frances works 20 days a month, with a regular operating shift of eight hours per day. Any time beyond that is considered overtime. Regular-time pay is $15 per employee and overtime is $22, both in an hourly basis. Overtime is limited to 20 hours per month per employee. The plant currently has 250 employees. Each product requires two hours of labor input. It costs $3 to carry the product in inventory for a month. Frances can change the size of the workforce by laying off or hiring employees. Hiring a new employee incurs a cost of $1,000, while laying off an employee incurs a layoff cost of $2,000. Frances starts the year with 5,000 product in inventory and wants to end the year with 5,000 units in inventory. Assuming that no stockouts are allowed and that no subcontracting is available, what is the optimal production schedule for the year? What is the cost of this plan?

Reference no: EM132189129

How communication is relevant to spreadsheet model

Explain how “Communication” is relevant to a spreadsheet model. Explain how “Reliability” is relevant to a spreadsheet model. Explain how “Auditability” is relevant to a sprea

Make to persuade upper management to use suggestions

Select three different things you would suggest for succession planning at your firm explain why you would recommend these to upper management, how these three ideas would mak

Examining and categorizing structure

Toyota and GM are two like companies competing in the same industry. Using this example and/or an alternative comparable set of companies, discuss how you plan to drill down i

Review the strategic plan

Review the Strategic Plan of the U.S. Office of Personnel Management (OPM) located in the e-activity. Use information from Chapter 3 and Bryson's Strategy Change Cycle located

Appropriate for extinguishing unacceptable behaviors

Discipline is appropriate for extinguishing unacceptable behaviors but ineffective in improving acceptable performance. Rewards are effective for improving acceptable behavior

Technology from global perspective-type of boundaries

Use the specific example of Iraq and research the type of boundaries that Iraq has with each of its neighbor countries. Discuss the factors that either impede or encourage the

Organization-wide performance improvement process

Student will prepare an Excel spreadsheet demonstrating the organization-wide Performance Improvement Process and the team-based Performance Improvement Process in healthcare

Analysis of the ethical issues raised by incident

Use Thiroux's five principle analysis to examine and explain your analysis of the ethical issues raised by incident of Trayvon Martin & George Zimmerman. How this case possibl


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd