SYNDICATE 8

Operations Management Syndicate Assignment Chapter 16 3.

Demand and Working Days February March April May 80000 64000 100000 40000 20 20 20 20 Costs $10/unit/month $20/unit $50/worker $70/worker 0.25/unit $10/hour $15/hour February March Total 80000 64000 20000 16000 20 20 160 160 125 100 25 0 1250 0 1250 0 25 0 1750 1750 200000 160000 360000 Total cost 363000 April Beginning inventory Working days per month Production hours available Regular shift production Demand forecast Units available before overtime Units overtime Overtime hours 0 20 16000 64000 100000 -36000 36000 9000 Beginning inventory Working days per month Production hours available Regular shift production Demand forecast Units available before overtime Units overtime May 0 20 16000 64000 40000 24000 0 Total

Demand forecast Number of working days

Inventory holding cost Marginal cost of backorder Hiring cost Layoff cost Labor hours required Straight-time cost Overtime cost

Production requirement Production hours required Working days per month Hours per month per worker Workers required New workers hired Hiring cost Workers laid off Layoff cost Straight-time cost

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Overtime hours permitted Overtime cost Overtime production Units available after overtime Units backordered Backorder cost Straight-time cost Total cost of this plan

5000 18750 20000 -16000 16000 320000 160000 1261750

Overtime cost Units excess Inventory cost

0 24000 240000

18750 240000 320000 320000 898750

Straight-time cost

160000 Total cost

4.
Demand and Working Days Spring Summer Fall Winter 20000 10000 15000 18000 50 50 50 50 Costs $20/unit/quarter $8/unit $100/worker $200/worker 2/unit $10/hour $15/hour Spring 1000 Production requirement 50 Production hours required 28000 Working days per quarter Hours per quarter per 14000 worker 20000 Workers required -5000 5000 150000 280000 430000 New workers hired Hiring cost Workers laid off Layoff cost Straight-time cost Summer Fall Total 10000 15000 20000 30000 50 50 400 50 0 0 20 4000 200000 400 75 25 2500 0 0 300000 Total cost

Demand forecast Number of working days

Inventory holding cost Marginal cost of backorder Hiring cost Layoff cost Labor hours required Straight-time cost Overtime cost

Beginning inventory Working days per quarter Production hours available Regular shift production Demand forecast Units available before overtime Units overtime Overtime cost Straight-time cost Total cost

2500 4000 500000 506500

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Production requirement Working days per quarter Production hours available Actual production Units backordered Backorder cost Straight-time cost Total cost Total cost of this plan

Winter 18000 50 30000 15000 3000 24000 300000 324000 1260500

5.
Demand forecast Number of working days January February March April May June July 2500 3000 4000 3500 3500 3000 3000 20 20 20 20 20 20 20 August September October November December Totals 4000 4000 4000 3000 3000 40500 20 20 20 20 20 240 Costs 1/unit $10/hour $20/unit/month $5/unit/month Inventory 500 units One-half month Aggregate Production Planning Requirements January February March April May June July 500 1250 1500 2000 1750 1750 1500 2500 3000 4000 3500 3500 3000 3000 1250 1500 2000 1750 1750 1500 1500 3250 3250 4500 3250 3500 2750 3000 1250 1500 2000 1750 1750 1500 1500

Number of working days Demand forecast

Production time Average labor cost Shortage cost Carrying cost

Beginning inventory Safety stock

Beginning inventory Demand forecast Safety stock Production requirements Ending inventory

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Beginning inventory Demand forecast Safety stock Production requirements Ending inventory

August September October November December 1500 2000 2000 2000 1500 4000 4000 4000 3000 3000 2000 2000 2000 1500 1500 4500 4000 4000 2500 3000 2000 2000 2000 1500 1500

Workers = (40500*1)/(240*8) = 22 people

January February March April May June July 500 1520 2040 1560 1580 1600 2120 20 20 20 20 20 20 20 3520 3520 3520 3520 3520 3520 3520 3520 3520 3520 3520 3520 3520 3520 2500 3000 4000 3500 3500 3000 3000 1520 2040 1560 1580 1600 2120 2640 1250 1500 2000 1750 1750 1500 1500 270 540 0 0 0 620 1140 1350 2700 0 0 0 3100 5700 35200 35200 35200 35200 35200 35200 35200 August September October November December Total 2640 2160 1680 1200 1720 20 20 20 20 20 3520 3520 3520 3520 3520 3520 3520 3520 3520 3520 4000 4000 4000 3000 3000 2160 1680 1200 1720 2240 2000 2000 2000 1500 1500 160 0 0 220 740 800 0 0 1100 3700 18450 35200 35200 35200 35200 35200 422400 Total cost 440850

Beginning inventory Working days per month Production hours available Actual production Demand forecast Ending inventory Safety stock Units excess Inventory cost Straight-time cost

Beginning inventory Working days per month Production hours available Actual production Demand forecast Ending inventory Safety stock Units excess Inventory cost Straight-time cost

6.
Demand and Working Days January February March April May June 6240 5300 7040 6380 6240 4800 25 25 25 25 25 25

Customers' hourly requirements Number of working days

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Working days per month Working hours available Customers' hourly requirements Overtime working hours needed Maximum overtime work Overtime cost Early work performed Early work cost Late work performed Late work cost Straight-time cost

January February March April May June Total 25 25 25 25 25 25 4800 4800 4800 4800 4800 4800 6240 5300 7040 6380 6240 4800 1440 500 2240 1580 1440 0 1440 1440 1440 1440 1440 0 59040 59040 59040 59040 59040 0 295200 0 940 140 0 0 0 0 3760 560 0 0 0 4320 0 0 0 0 0 0 0 0 0 0 0 0 168000 168000 168000 168000 168000 168000 1008000 Total cost 1307520

10.
May Beginning inventory Demand for bathing suits FT employees production available Demand deficit PT employees production needed (3) Excess inventory Production cost Carrying cost 403 3200 2460 337 495 158 134320 126.4 June 158 2800 2460 182 495 313 124520 250.4 July 313 3100 2460 327 495 168 130720 134.4 August Total 168 3000 2460 372 495 123 124920 514480 98.4 609.6 Total cost 515089.6