Question

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 950, 1,510, and 1,220, 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.

Storage cost is $4 per unit per month based on ending inventory level, standard pay rate is $7 per hour, hiring and training cost is $190 per worker, layoff cost is $290 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 40 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	950	1,510	1,220
Safety stock
Beginning inventory
Net production required
Workers required
Hired
Laid off
Actual production
Ending inventory

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

Answer 1

Solution :