HW_14_sol - (14 workers) 2240 2240 2240 2240 2240 2240...

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Homework 14 (solution) Chase Strategy Jan Feb March April May June Total Production Requirement 2200 3000 4000 3500 3500 3000 Production Hours Required 2200 3000 4000 3500 3500 3000 Working Days per month 20 20 20 20 20 20 Hours per month per worker 160 160 160 160 160 160 Workers required 14 19 25 22 22 19 New workers hired 0 5 6 0 0 0 Hiring Cost 0 1500 1800 0 0 0 3300 Workers laid off 4 0 0 3 0 3 Layoff cost 1600 0 0 1200 0 1200 4000 Straight-time cost 22000 30000 40000 35000 35000 30000 192000 total cost 199300 Level Strategy Beginning inventory 200 1000 1200 400 100 -200 Working days per month 20 20 20 20 20 20 Production hours available (20 workers) 3200 3200 3200 3200 3200 3200 Actual Production (units) 3200 3200 3200 3200 3200 3200 Demand Forecast 2400 3000 4000 3500 3500 3000 Ending Inventory 1000 1200 400 100 -200 0 Units Excess 1000 1200 400 100 0 0 Inventory Cost ($5/unit) 5000 6000 2000 500 0 0 13,500 Units Short 0 0 0 0 200 0 Shortage Cost ($20/unit) 0 0 0 0 4000 0 4000 Straight-time Cost ($10/hour) 32000 32000 32000 32000 32000 32000 192000 Hiring 2 workers in Jan 600 600 total cost 210100 Stable Strategy Production Requirement 2200 3000 4000 3500 3500 3000 Working Days per month 20 20 20 20 20 20 Production hours available
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Unformatted text preview: (14 workers) 2240 2240 2240 2240 2240 2240 Actual Production (units) 2240 2240 2240 2240 2240 2240 Units Outsourced 760 1760 1260 1260 760 Outsourcing Cost ($12/unit) 9120 21120 15120 15120 9120 69600 Straight-time Cost ($10/hour) 22400 22400 22400 22400 22400 22400 134400 Laying off 4 workers in Jan 1600 1600 total cost 205600 Remarks : a) For the level strategy we computed the average number of workers required over the 6 month periods as follows: # workers = (total production requirements * time required for each unit) / (total time that a worker works over the 6 months) So , # workers =19200*1/960 =20 workers b) For the stable strategy we computed the # workers we need for the month with the lowest requirements . This should be January and similarly to a) we have # workers = 2200*1/160= 14 workers...
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HW_14_sol - (14 workers) 2240 2240 2240 2240 2240 2240...

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