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Calculate the annual cost for a company

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Develop a production plan and calculate the annual cost for a company whose demand forecast that n 10000 fall in winter 8000 in spring 7000 in summer 12000. The winter in early autumn is 500 units. At this time early autumn has 30 workers, but plans to hire temporary workers in early summer and fire them at the end of that season. In addition, business with the union the option of using the regular workforce overtime during the winter or spring should it be necessary to prevent the inventory from being exhausted upon completion of each of those quarters. There is no overtime during the fall.

The relevant costs are contracting 100 dollars for each worker dismissed 200 dollars for each worker dismissed maintenance of inv. $ 5 per quarter unit ordered delays $ 10 per unit regular time $ 5 per hour, extra time $ 8 per hour. Assume that productivity is 0.5 units per hour of worker with 8 hours a day and 60 days per season.

Reference no: EM131291269

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