Question jones inc is preparing an aggregate production, Ask an Expert

Management Studies

Question: Jones Inc. is preparing an aggregate production plan for next year. The company expects demand to be 1,000 units in quarter 1; 2,000 units in quarter 2; 4,000 units in quarter 3; and 3,000 units in quarter 4. The company will have 100 units in inventory at the beginning of the year and desires to maintain at least that number at the end of each quarter as safety stock. Other information: Regular production labor cost = $100 per unit Overtime production cost per unit = $150 Inventory carrying cost = $25/unit/quarter based on quarter-ending inventory

Hiring cost = $2,000 per worker

Firing/layoff cost = $3,000 per worker

Beginning number of workers = 15

Each worker can produce 100 units per quarter.

a. What is the total cost of a level plan?

b. What is the total cost of a chase plan utilizing hiring and firing?

c. Suppose Jones management is reluctant to constantly change the workforce by hiring and firing. The company decides to hire seven additional workers at the beginning of the year. The company will build inventory in low-demand months and use it in high-demand months. In addition, if necessary, overtime will be used to meet demand requirements if there is not sufficient inventory available. What is the total cost of this plan?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92758406

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 you are about to start your own business like a

1. You are about to start your own business like a restaurant what would be the best form of business organization (e.g.partnership, LLC, etc.) for your business and why. In discussing “why”, please include the pros and ...

1 compare and contrast new-product pricing strategies and

1. Compare and contrast new-product pricing strategies, and discuss the conditions under which each is appropriate 2. What is the economic impact of non-revenue generating activity in the motor carrier industry? 3. Which ...

Note this problem does not need more information all the

NOTE: This problem does NOT need more information. All the information is here directly as written from the book. I have most done just needed some help with setting up in excel and solver. Again, it has all the informat ...

Suppose that jj inc has a production rate of 250000 units

Suppose that JJ Inc. has a production rate of 250,000 units per year, and a demand of 800 per day. JJ has a setup cost of $40, and a holding cost percentage of 25%. JJ sells their product for $50, and it costs them $30 t ...

Company name neiman marcusmiddot identify a company for

Company Name: "Neiman Marcus" · Identify a company for which you would like to possibly work with someday. Conduct thorough research on the company by answering all of the questions listed below. If you cannot thoroughly ...

Show your work with excel and solverthe senior executives

Show your work with Excel and Solver: The senior executives of an oil company are trying to decide whether or not to drill for oil in a particular field in the Gulf of Mexico. It costs the company $1,000,000 to drill in ...

Mark and stacy brother and sister were partners who had

Mark and Stacy, brother and sister, were partners who had irreconcilable differences. In a suit to dissolve the partnership, a referee was appointed. The referee, to dispose of the assets, asked each partner to submit a ...

Read the first three chapters of the pmbok sixth edition

Read the first three chapters of the PMBOK, Sixth Edition, pages 1 - 68. In your own words, briefly explain Project Management. Identify and describe the five process groups, as identified in the PMBOK. If you notice: Th ...

Consider the mcdonalds tracking survey presented in

Consider the McDonald's tracking survey presented in Branding Brief 8-1 (see below). What might you do differently? What questions would you change or drop? What questions might you add? How might this tracking survey di ...

For this class you will be working with a real company or a

For this class, you will be working with a real company or a fictitious one of your own creation that is in a market domain or segment of an industry with which you are familiar. Examples of industries include transporta ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert