assume that the last worker a firm hired produces 60

Assume eight hours per day and 50 days per quarter. Worker productivity is two hours per unit. Quarter straight-time labor, S10 per hour overtime. You are given these costs: hiring, $100 per new worker layoff, $200 per worker laid off holding, 520 per unit per quarter back order costs, $8 per unit per If demand exceeds supply, use overtime in spring only, which means that back orders could occur in winter. The number of workers laid off at the beginning of summer and the number hired at the end of summer should result in planned production levels for summer and fall that equal the demand forecasts for summer and fall respectively. Also, you may hire new workers only at the end of summer to begin regular work in the fall. The union contract specifies that you may layoff workers only once a-.year, at the beginning of summer. At the beginning of spring you have 70 workers and 1,000 units in inventory. The unit demand forecast is spring, 20,000 summer, 10.000 fall, IS,OOO winter, 18,000. Develop an aggregate production plan for the next year. SIS per hour back order, $20 per unit per month. Costs are hiring, $Soper new worker layoff, $70 per worker laid off inventory holding, $10 per unit per month straight-time labor, S10 per hour overtime. Assume/eight hours per day, 20 days per month and zero inventory on February 1. Worker productivity is four units per hour. You are given the following unit demand forecast: February, 80,000 March, 64,000 April, 100,000 May, 40,000. If demand exceeds supply', then back orders occur. However, government constraints put a maximum of S,OOOhours of overtime labor per month in April arid May (zero overtime in February and March). For April and May, you should use overtime. For February and March, you should produce to exactly meet the demand forecast. Develop an aggregate production plan for a four-month period: February through May. Assume that worker productivity is two hours per unit, with eight hours per day and 60 days per season.Ģ.

Relevant costs are hiring, $100 for each temp layoff, $200 for each regular worker laid off inventory holding, $S per unit per quarter back order, S 10 per unit per quarter straight time, $S per hour overtime, $8 per hour. Overtime is not available during the fall. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stock outs at the end of those quarters. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. Inventory at the beginning of fall is 500 units. Develop a production plan and calculate the annual cost for a firm whose unit demand forecast is fall.

Assume that the last worker a firm hired produces 60