Togo makes riding lawn mowers and tractors. The company's expected quarterly demand is given below in the chart. The company will have 200 mowers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the quarter. Below is other critical data: Production cost per unit = $210 Inventory carrying cost per month per unit = $30 (based on ending month inventory) Hiring cost per worker= $400 Firing cost per worker = $500 Beginning number of workers = 50 Each worker can produce 100 units per quarter. a. Given the planning information, develop a level production plan and a chase production plan. (Leave no cells blank - be certain to enter "0" wherever required.) Level Plan Regular Ending Inventory Workers Required QuarterDemand Production 4,000 8,000 Hire Fire 1. 3 6,000 6,000 4 24.000 Total Chase Plan - Variable Workforce Regular Ending Inventory Workers Required QuarterDemand Production 4,000 8,000 6,000 6.000 Hire Fire Total 24,000 123t

Togo makes riding lawn mowers and tractors. The company's expected quarterly demand is given below in the chart. The company will have 200 mowers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the quarter. Below is other critical data: Production cost per unit = $210 Inventory carrying cost per month per unit = $30 (based on ending month inventory) Hiring cost per worker= $400 Firing cost per worker = $500 Beginning number of workers = 50 Each worker can produce 100 units per quarter. a. Given the planning information, develop a level production plan and a chase production plan. (Leave no cells blank - be certain to enter "0" wherever required.) Level Plan Regular Ending Inventory Workers Required QuarterDemand Production 4,000 8,000 Hire Fire 1. 3 6,000 6,000 4 24.000 Total Chase Plan - Variable Workforce Regular Ending Inventory Workers Required QuarterDemand Production 4,000 8,000 6,000 6.000 Hire Fire Total 24,000 123t

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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