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Plan production for the four-month period: February through May. For February and March, you must make to exact demand forecast. For April and May, you msut use overtime and inventory with stable workforce; stable means that number of workers required for March will be held constant through May. Though, government constraints put maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then back orders happen. There are 100 workers on January 31. You are given following demand predict: February, 80,000; March, 64,000; April, 100,000; May, 40,000. Productivity is four units per worker hour, eight hours per day, 20 days per month. suppose zero inventory on February 1. Costs are hiring, $50 per new worker; layoff, $70 per worker laid off; inventory holding, $10 per unit-month; straight-time labor, $10 per hour; overtime, $15 per hour; backorder, $20 per unit. Determine the total cost of this plan.

Project Management, Management Studies

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