Explain however, government constraints put a maximum

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Q. Plan production for a four-month period: February through May. For February also March, you should produce to exact demand forecast. For April also May, you should use overtime also inventory with a stable workforce; stable means that the number of workers needed for March will be held constant through May. Explain however, government constraints put a maximum of 4,000 hours of overtime labour per month in April also May (zero overtime in February also March). If demand exceeds supply, then back orders occur. There are 118 workers on January 31. You are specified the subsequent demand forecast: February, 88320; March, 75520; April, 100,000; May, 40,000. Productivity is four units per worker hour, eight hours per day, also 20 days per month. Assume zero inventories on February 1. Costs are hiring, $50 per new worker; layoff, $70 per worker lie off; inventory holding, $10 per unit-month; straight-time labour, $10 per hour; overtime, $15 per hour; backorder, $20 per unit. Find out the total cost of this plan.

Reference no: EM1377916

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