Please show work::: Mike Blanford, master scheduler at General Avionics, has the following demand forecast for...
Please show work::: Mike Blanford, master scheduler at General Avionics, has the following demand forecast for one line in his factory
|
Quarter |
Unit Sales |
|
1 |
10,000 |
|
2 |
22,000 |
|
3 |
11,000 |
|
4 |
12,000 |
At the beginning of quarter 1, there are 7,000 units in inventory. The firm has prepared the following data:
Hiring cost per employee = $500
Firing cost per employee = $1,000
Beginning workforce = 60 employees
Inventory carrying cost = $2 per unit per quarter (charged on ending inventory)
Stockout cost = $5 per unit per quarter of ending stockout quantity
Regular payroll = $5,200 per employee per quarter
Each employee can produce 200 units per quarter. If Mike produces exactly enough to meet demand each quarter with no inventories at the end of quarters, how much will he produce each quarter, and what is the overall cost? (Use a spreadsheet model for the calculations.)
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