You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Mr. Chua that you can do a better job at aggregate planning than his current staff. He said, "Fine. You do that, and you have a 1-year contract. To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Costs Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Month 0 June 1 July 2 August 3 September 4 October $9/disk drive/Month $80/disk drive $12 $18/hour (above 8 hours) $40/worker $80/worker Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) 5 November 6 December Demand 420 480 500 560 750 700 Other data Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory Ending Inventory O disk drives "Note that there is no holding cost for June. Beginning Inventory 150 8 people 4 hours 20 days 150 disk drives Units Produced Personnel on Hire/ Staff Layoff Ending Inventory
You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Mr. Chua that you can do a better job at aggregate planning than his current staff. He said, "Fine. You do that, and you have a 1-year contract. To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Costs Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Month 0 June 1 July 2 August 3 September 4 October $9/disk drive/Month $80/disk drive $12 $18/hour (above 8 hours) $40/worker $80/worker Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) 5 November 6 December Demand 420 480 500 560 750 700 Other data Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory Ending Inventory O disk drives "Note that there is no holding cost for June. Beginning Inventory 150 8 people 4 hours 20 days 150 disk drives Units Produced Personnel on Hire/ Staff Layoff Ending Inventory
Management, Loose-Leaf Version
13th Edition
ISBN:9781305969308
Author:Richard L. Daft
Publisher:Richard L. Daft
Chapter7: Planning And Goal Setting
Section: Chapter Questions
Problem 2ED
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