HW9 (blank) - demand fluctuations She has asked you to...

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Brittany Braud Management 368 Homework 9 June 23, 2011 Use the following data to solve the first 7 problems. Problem Data Cost Data Regular-time labor cost per hour $10.00 Overtime labor cost per hour $15.00 Subcontracting cost per unit (labor only) $84.00 Holding cost per unit per period $10.00 Back-order cost per unit per period $20.00 Hiring cost per employee $600.00 Firing cost per employee $450.00 Capacity data Beginning workforce 210 employees Beginning inventory 400 units Labor standard per unit 6 hours Regular time available per period 160 hours Overtime available per period 32 hours Subcontracting maximum per period 1000 units Subcontracting minimum per period 500 units Demand data Period 1 6000 units Period 2 4800 units Period 3 7840 units Period 4 5200 units Period 5 6560 units Period 6 3600 units 1. Chapter 13 – Problem #1: The Backpack Company produces a line backpacks. The manager, Jill Nicholas, is interested in using a level aggregate plan. Inventories and back orders will be used to handle
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Unformatted text preview: demand fluctuations. She has asked you to develop such a plan. a) Calculate the aggregate production rate b) Calculate the appropriate workforce given the aggregated production rate c) Show what would happen if this plan were implemented d) Calculate the costs of this plan e) Evaluate the plan in terms of cost, customer service, operations, and human resources. 2. Chapter 13 – Problem #3: Although the Backpack Company has always used a level aggregate plan, Jill is interested in evaluating chase aggregate plans also. She has asked you to calculate how many hires and fires would be necessary to adjust capacity to meet demand exactly each period. If necessary, incur some undertime. Calculate the number of workers needed each period....
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