In their efforts to plan for production, the Operations Planning Group at the Akon Manufacturing Company collected the following data about its operations:Number of employees at the start of the first quarter126Cost per employee$3,500 per quarterNumber of units produced per employee100 per quarterOver-timeNot allowedDemand for the first quarter12,800 unitsDemand for the second quarter12,500 unitsDemand for the third quarter13,100 unitsDemand for the fourth quarter12,100 unitsCost of hiring a worker$3,000Cost of laying off a worker$2,000Inventory carrying cost per unit$250 per yearBackorder cost per unit$125 per quarterInitial inventory500 Develop a Level Capacity aggregate plan.Develop a Matching Capacity to Aggregate Demand plan that ensures zero inventory at the end of quarter 4.What is the cost of each plan?

Given that: Quarter Forecast 1 12800 2 12500 3 13100 4 12100

Answered: In their efforts to plan for…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

See similar textbooks

Related questions

Question

In their efforts to plan for production, the Operations Planning Group at the Akon Manufacturing Company collected the following data about its operations:

Number of employees at the start of the first quarter	126
Cost per employee	$3,500 per quarter
Number of units produced per employee	100 per quarter
Over-time	Not allowed
Demand for the first quarter	12,800 units
Demand for the second quarter	12,500 units
Demand for the third quarter	13,100 units
Demand for the fourth quarter	12,100 units
Cost of hiring a worker	$3,000
Cost of laying off a worker	$2,000
Inventory carrying cost per unit	$250 per year
Backorder cost per unit	$125 per quarter
Initial inventory	500

Develop a Level Capacity aggregate plan.
Develop a Matching Capacity to Aggregate Demand plan that ensures zero inventory at the end of quarter 4.
What is the cost of each plan?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.

Similar questions