Question

In: Operations Management

Dade Industries makes syringes. The demand for the next four quarters and the cost data are...

Dade Industries makes syringes. The demand for the next four quarters and the cost data are given below. Each employee can produce 100 syringes per quarter. Because of union contract no overtime is permissible. The current work force is 18 workers.

Quarter

1

2

3

4

Demand

1500

2000

1800

2500

Hiring costs = $1000/ worker; Layoff costs = $ 700/worker;

Regular time wages = $10000/worker/quarter;

Inventory holding costs = $2.00/unit/quarter

  1. For a level strategy in this manufacturing example:
  1. Which decision variable is maintained constant in the planning horizon? What factor varies?

  1. What information helps you decide the production rate needed?
  1. What is the production rate?
  1. Calculate the workers needed (round up to a full worker).
  1. Calculate the anticipation inventory.

        Quarter

1

2

3

4

Beginning Inventory

Production Rate

Forecasted demand

1500

2000

1800

2500

Ending Inventory

Planned Workforce

Planned Hires

Planned Layoffs
  1. Calculate the cost of the above strategy.

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keosha answered 1 year ago
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