Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data. There are 8 hours of production per day. Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Costs $8/disk drive/Month $80/disk drive $12/hour $18/hour (above 8 hours) Month $40/worker $80/worker What will each of the two following strategies cost? a) Vary the workforce so that production approximates demand. Chua had eight workers on board in June. (Enter all responses as whole numbers). 0 June 1 July 2 August 3 September 4 October 5 November 6 December Fill in the table below. (Enter all responses as whole numbers. In the hire/layoff column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) Demand" 400 500 Other Data Current workforce (June) 8 people Labor-hours/disk drive 4 hours Workdays/month 550 700 800 700 20 days Beginning Inventory 150 disk drives* 0 disk drives Ending Inventory *Note that there is no holding cost for June. Beginning Inventory 150 Plan A Personnel on Staff** 8 Units Produced Hire / Layoff
Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data. There are 8 hours of production per day. Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Costs $8/disk drive/Month $80/disk drive $12/hour $18/hour (above 8 hours) Month $40/worker $80/worker What will each of the two following strategies cost? a) Vary the workforce so that production approximates demand. Chua had eight workers on board in June. (Enter all responses as whole numbers). 0 June 1 July 2 August 3 September 4 October 5 November 6 December Fill in the table below. (Enter all responses as whole numbers. In the hire/layoff column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) Demand" 400 500 Other Data Current workforce (June) 8 people Labor-hours/disk drive 4 hours Workdays/month 550 700 800 700 20 days Beginning Inventory 150 disk drives* 0 disk drives Ending Inventory *Note that there is no holding cost for June. Beginning Inventory 150 Plan A Personnel on Staff** 8 Units Produced Hire / Layoff
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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