Question

Problem 8-14

Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem.

     The monthly forecasts for Product X for January, February, and March are 1,010, 1,490, and 1,240, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 550 units.

     Manufacturing cost is $200 per unit, storage cost is $5 per unit per month, standard pay rate is $8 per hour, overtime rate is $12 per hour, cost of stockout is $10 per unit per month, hiring and training cost is $260 per worker, layoff cost is $360 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 42 workers and that they work 8 hours per day. (Leave no cells blank - be certain to enter "0" wherever required. Input all values as positive values. Round Workers Required up to next higher whole number. Round all other variables to nearest whole number.)

	January	February	March
Forecast	1,010	1,490	1,240
Safety stock
Beginning inventory
Net production required
Workers required
Hired
Laid off
Actual production
Ending inventory

	January	February	March
Labor	$	$	$
Inventory
Hiring
Layoff
Total	$	$	$
		Total	$

Answer 1