hr_om11_ism_ch13

20 and dec 20 holding cost 50 8 400 inventory cost

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Unformatted text preview: (a) Aggregate plan, hiring/layoff only: Beg. Personnel Inventory Hours Required Unit Over Units Required at 20 days Period Demand (or Short) Required at 4 Each at 8 hrs  Jun  Jul  Aug  Sep  Oct  Nov  Dec 150 150 –10  10  20   0   0 400 500 550 700 800 700 250 510 540 680 800 700 1,000 2,040 2,160 2,720 3,200 2,800  6.25 12.75 13.50 17.00 20.00 17.50 Production Costs Personnel Units Over Layoff Hire: $40 on Staff Produced (or Short) Hire $40 $80 Layoff: $80  8  6 13 14 17 20 18 240 520 560  680 800 720 –10 10* 20*  0  0 * 20 $160 $280  $40 $120 $120 2 $160            Total Cost: $880 7 1 3 3 * 2 Inventory (August = 10 and Sept. = 20 and Dec = 20): Holding cost = 50 × $8 = $400 Inventory cost = 50 × 8 = $400 Hiring/Layoff cost = 880 $1,280 NOTE: We assumed that, if the capacity of a fraction of a worker was needed (was excess), one worker was hired (layed of f) . Solution by POM for Windows, in which the increase cost is $1 per unit and the decrease cost is $2 per unit, yields a similar result, with a total extra cost of $890. (b) Aggregate plan, overtime only: Period Demand Jun Jul Aug Sep Oct Nov Dec 400 500 550 700 800 700 Productio...
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This document was uploaded on 01/24/2014.

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