Develop production plan and calculate annual cost for firm

Assignment Help Operation Management

Reference no: EM132090782

Develop a production plan and calculate the annual cost for a firm who's demand forecast is fall, 10,000 units; winter, 8000 units, spring, 7000 units and summer, 12,000 units. Inventory at the beginning of fall is 500 units. At the beginning of fall, you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off by the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if it is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevants costs are hiring, $100 for each temp; layoff, $200 for each worker laid off; inventory holding, $5 per unit per quarter; backorder, $10 per unit; straight time,, $14 per hour; overtime, $21 per hour. Assume the productivity is 0.5 units per worker hour, with eight hours per day and 60 days per season.

Reference no: EM132090782

Questions Cloud

Define how the model explains your cultural identity : Use one of the cultural identity development models to examine your own racial/ethnic cultural identity development. Explore your thoughts and feelings.

In what ways would they represent a significant overhaul : In what ways do these features reflect a continuation of the existing system? In what ways would they represent a significant overhaul?

Define stages of one racial cultural development model : Use two stages of one racial/ethnic cultural development model (for people of color) to describe the cultural identity development of a historical/political.

Statistical forecasting and judgemental forecasting : What is the trade-off between statistical forecasting and judgemental forecasting?

Develop production plan and calculate annual cost for firm : Develop a production plan and calculate the annual cost for a firm who's demand forecast is fall, 10,000 units;

What aspect of knowledge systems are evident : What motivated Essex Police to develop indicators and how did they develop the indicator? What aspect of knowledge systems are evident?

Development to a corporate citizenship : What is the obstacle faced by GM during the development to a corporate citizenship?

Differences among salaries for different occupations : What factors may account for the wide differences among salaries for different occupations?

How common is it for children to experience : How common is it for children to experience this kind of trauma? Are there specific effects that result from this kind of childhood trauma?

User Account

All Pages