Calculate total cost of the plan

Assignment Help Operation Management

Reference no: EM13110905

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: EM13110905

Questions Cloud

Determine how many kilograms of iron are required : Considering the given equation Fe2O3 (s) + 3 CO (g) ? 2 Fe (s) + 3 CO2 (g) this is The overall reaction for the production of iron from iron ore (Iron (III) oxide) determine How many kilograms of iron are required to form 10,000 kilograms of Fe?

What kind of microorganism is selected for on the sab : What kind of microorganism is selected for on the SAB plate and the 3M Petrifilm?

Explain how can knowing about different disciplines of study : Explain how can knowing about different disciplines of study (domains of thinking) help you to read and write critically as a student and a professional in the workplace?

Describe the process of fat hydrogenation : Describe the process of fat hydrogenation, and discuss its advantages and disadvantages, List strategies for lowering fat intake with minimal impact on diet palatability.

Calculate total cost of the 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.

Determine how many grams of potassium sulfate can be formed : Determine how many grams of Potassium Sulfate can be formed from 150.0 grams of potassium hydroxide with sufficient sulphuric acid H2SO4?

Discuss options under the contact considering the potential : Using the six essential elements of an enforceable contract and text section on breach, provide a basic analysis, discuss options under the contact considering the potential

Which is an example of a medically important biofilm : Which of the following is an example of a medically important biofilm?

Determine the equilibrium concentrations of gas : Celsius the initial concentration of the three gases are.3M H 2 S,.3H 2 and .150 S 2 you just need to determine the equilibrium concentrations of all these given 3 gases?

User Account

All Pages