Plan Production for next year

by | Sep 15, 2021 | Homework Help

Plan Production for next year. The demand forecast is spring 20000; summer, 10000; Fall,15000; winter 18000. At the beginning of spring, you have 70 workers, and 1000 in inventory. The union contract specifies that you may layoff worker once a year, at the beginning of Summer. Also, you may hire new worker only at the end of the summer to begin regular work in the fall. The number of workers laid off at the beginning of summer and the hired at the end of summer should result in planned production levels for summer and fall that equal the demand forecasts for summer and fall. If demand exceeds supply, use overtime in spring only. Which means back order can occur in winter. You are given these cost; $8 per unit; straight-time labor $10 per hour; overtime,$15 per hour. Productivity is 0.5 unit per worker hour, eight hours per day, 50 day per quarter. Find the total cost

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