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Solution to Assignment 3

Solution to Assignment 3 - Solution to Assignment 3 1...

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Solution to Assignment 3 1. Constant workforce strategy: Period Demand Cum Demand Number of units /wkr Cum Number of units /wkr Number of wkrs Cum Prod. Inv. July 750 750 32 32 24 1056 306 August 1100 1850 32 64 29 2112 262 September 950 2800 32 96 30 3168 368 October 900 3700 32 128 29 4224 524 November 1000 4700 32 160 30 5280 580 December 1550 6250 32 192 33 6336 86 total 2126 In the constant workforce strategy, we need 33 workers. Total cost=Inventory cost+hiring cost in the beginning =10*(2126+400)+600*(35-33)=26460 Zero Inventory Strategy: Period Demand Number of units/wkr Number of wkrs Number of hires Number of fires Prod. Cum D Cum Prod. Inv. July 750 32 24 11 768 750 768 18 August 1100 32 34 10 1088 1850 1856 6 September 950 32 30 4 960 2800 2816 16 October 900 32 28 2 896 3700 3712 12 November 1000 32 31 3 992 4700 4704 4 December 1550 32 49 18 1568 6250 6272 22 Total 31 17 78 For Aug, 1100/32=34.375, 0.375*32=12<18 (left inventory from Jul), so we only need 34
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