Question

1. Meadows Cookie Company makes a variety of cookies. Based on the orders received and forecasts of buying habits, it is estimated that the demands for the next four months are 850, 1260, 510 and 980 in thousands of cookies. During a 46-day period when there were 120 workers, the company produced 7 million cookies. Assume that the number of working days over the four months are respectively 26, 24, 20, and 16. There are currently 100 workers employed, and there is no starting in inventories of cookies.
   1. Complete the table below:

Month	Working Days	Number of Units per Worker (000)	#Units per worker (000)	Forecast Demand (000)	Forecast Demand	Min Number of Workers	Monthly Production (000)	Monthly Production	End Inventory
1
2
3
4

1. 2. Find K, the number of aggregate units produced by one worker in one day.
2. c. What is the minimum constant workforce required to meet demand over the next four months.

4. Assume that C_I = 10 cents per cookie per month, C_H = $100, and C_F = $200. Evaluate the cost of the plan .

Initial Number of workers = ____________

Number of workers hired =______________

Beginning inventory =__________

Ending inventory = _____________

1. 5. Total Cost of the plan is ____________
2. 6. Formulate the linear program.

Answer 1

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a.Determine the minimum constant workforce for MC Company that is required to meet the demand over the next four months.

Insert the formulas in the Excel spreadsheets to determine the minimum constant workforce plan. The table is shown below:

Hence, the total ending inventory through a constant workforce plan for MC Company is (since all the above values are in thousands of cookies).

Note the following details in the table:

• MC Company produced 1.7 million cookies during a 46-day period and with the workforce of 120 workers.

• K represents the number of aggregate units produced by one worker in one day. The resultant as shown in the table above is 0.308(‘000) of cookies per worker per day.

• Assume minimum constant workforce as 138 (rounded up from 137.03) workers since among the minimum workers required, 138 is the maximum. Thus, a minimum of 138 workers will be required.

b.Now calculate the cost of minimum constant workforce plan by assuming Cost of inventory as 10% per cookie per month. As per the stated question, Cost of hiring is $100 and cost of firing is $200.

Besides that, there are currently 100 workers who are employed and there is no starting inventory of cookies.

Calculate the number of workers hired as shown below:

Hence, the workers that would be hired by MC Company would be 38.

Calculation of total cost of minimum constant workforce plan is shown below:

Hence, the total cost of minimum constant workforce plan for MC Company is .

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