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Homework 5

# Homework 5 - Homework#5 Due Chapter 13 Use the following...

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Homework #5 – Due 04/14/09 Name: Chapter 13 Use the following information for questions 1 and 2: Machine Hours Labor Hours Gauge Set Product Mix per Unit per Unit A20 30% 35 110 B30 55% 45 150 C40 15% 75 190 1. Calculate the weighted planning values for Machine Hours per gauge set. 2. Calculate the weighted planning values for Labor Hours per gauge set.

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Use the following information for questions 3 and 4: Agreed upon demand must be met for the upcoming 4 month period with no back-orders. The average unit requires 25 worker hours. Each worker works 150 hours per month (can make 6 units per month); Hiring cost = \$400; Firing Cost = \$300; Inventory Holding Cost = \$8/unit/month. 3. Fill in the chart below using a level strategy: Starting Workforce = 22 Starting Inventory = 60 No ending workforce requirements Demand in Workers needed Actual Actual Ending Month Demand Worker Hours to meet Prod Plan Employees Production Firings Hirings Inventory 1 120 2 138 3 144 4 102 What is the total cost?
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