Find the minimum constant workforce, Applied Statistics

Assignment Help:

Find the minimum constant workforce:

ABC Company, a manufacturer of roofing supplies, has developed monthly forecasts for roofing tiles. The forecasted demand and the expected production days for months January to June in 2013 are given below:

Month

Forecasted demand (units)

Production days

January

1200

22

February

2500

19

March

1300

21

April

3500

20

May

1200

22

June

1700

20

ABC works 8 regular hours in each working day and past experience shows that one worker takes 2 hours to produce one tile. The company has estimated that there would be 6 production workers working in December 2012 and 550 tiles in inventory at the end of December 2012. Labor Union restricts ABC that overtime hours cannot exceed 20% of straight time (regular) hours in each month. ABC wants to keep at least 200 tiles in inventory at the end of June 2013. ABC has the following cost information:

Inventory holding cost

$5/unit/month

Backorder cost

$12/unit

Subcontracting cost

$28/unit

Straight time labor cost

$10/hour

Overtime cost

$20/hour

Hiring cost

$1000

Firing cost

$2000

If ABC allows backorders but does not want to use subcontracting or overtime,

a. Find the minimum constant workforce required to meet the above requirement (level production strategy).

b. Develop an aggregate production plan with the minimum constant workforce obtained in part (a) (level production strategy).

c. Estimate the total cost of the plan in (b).

If ABC wants to maintain zero inventory at the end of each month in 2013 except June, and does not want to use subcontracting or overtime,

d. Develop an aggregate production plan with zero inventory policy (chase strategy with flexible working hours).

e. Estimate the total cost of the plan in (d)


Related Discussions:- Find the minimum constant workforce

Prediction, Differentiate between prediction, projection and forecasting.

Differentiate between prediction, projection and forecasting.

Calculate the normal loss and abnormal loss, Chemical processors manufactur...

Chemical processors manufacture wondercool using two processes- mixing and distillation. The following details relate to the distillation process for a period. No opening work i

Mathematical properties of arithmetic mean, Mathematical Properties ...

Mathematical Properties The sum of deviations of the items from the arithmetic mean (taking signs into account) is always zero, i.e.      = 0. The sum of

Principles of data analysis, For the data analysis project, you will addres...

For the data analysis project, you will address some questions that interest you with the statistical methodology we are learning in class.   You choose the questions; you decide h

Residual, regression line drawn as Y=C+1075x, when x was 2, and y was 239, ...

regression line drawn as Y=C+1075x, when x was 2, and y was 239, given that y intercept was 11. calculate the residual

Correlation, prove that coefficient of correlation lies between -1 and+1

prove that coefficient of correlation lies between -1 and+1

Standard cost method, Under the standard cost method which is also referred...

Under the standard cost method which is also referred as the standard cost method ,stock receipts are assigned a standard cost. Any variations between the actual cost and standard

Uses of arithmetic mean, Uses Arithmetic mean is widely used beca...

Uses Arithmetic mean is widely used because of the following reasons: Mean is the simplest average to understand and easy to compute. It

Stratified sampling, Stratified Sampling Stratified Sampling is ...

Stratified Sampling Stratified Sampling is generally used when the population is heterogeneous. In this case, the population is first subdivided into several parts (or s

Write Your Message!

Captcha
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