Sales and Operations Planning Chase SOP 1. A company has predicted the following demands for the next six months: Month 2 Demand 15,000 18,000 3 5 15,000 20,000 22,000 6 24,000 Total 114,000 A single worker working for one month can produce 125 units. The beginning workforce is 50 workers. It costs the company $1,500 to hire one worker, and it costs the company $2,500 to lay off a worker. The cost to carry an item is $15 per unit per month. The stockout cost is estimated to be $40 per unit. Develop a chase sales and operations plan for this firm. Develop the monthly production schedule, and show the labor workforce and inventory levels. Finally, compute the cost of the plan.
Sales and Operations Planning Chase SOP 1. A company has predicted the following demands for the next six months: Month 2 Demand 15,000 18,000 3 5 15,000 20,000 22,000 6 24,000 Total 114,000 A single worker working for one month can produce 125 units. The beginning workforce is 50 workers. It costs the company $1,500 to hire one worker, and it costs the company $2,500 to lay off a worker. The cost to carry an item is $15 per unit per month. The stockout cost is estimated to be $40 per unit. Develop a chase sales and operations plan for this firm. Develop the monthly production schedule, and show the labor workforce and inventory levels. Finally, compute the cost of the plan.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 111P
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![Problems
Sales and Operations Planning
Chase SOP
1. A company has predicted the following demands for the next six months:
Month
CHAPTER 10 (S&OP and ERP)
Demand
1
2
3
4
5
6
Total
15,000 18,000 15,000 20,000 22,000 24,000 114,000
A single worker working for one month can produce 125 units. The beginning
workforce is 50 workers. It costs the company $1,500 to hire one worker, and it
costs the company $2,500 to lay off a worker. The cost to carry an item is $15 per
unit per month. The stockout cost is estimated to be $40 per unit.
Develop a chase sales and operations plan for this firm. Develop the monthly
production schedule, and show the labor workforce and inventory levels. Finally,
compute the cost of the plan.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F505f2121-ef48-4ee3-bd1d-a86da15ead2d%2F8032ca6b-9680-47af-932d-3270aa1b633c%2Fez94nv_processed.png&w=3840&q=75)
Transcribed Image Text:Problems
Sales and Operations Planning
Chase SOP
1. A company has predicted the following demands for the next six months:
Month
CHAPTER 10 (S&OP and ERP)
Demand
1
2
3
4
5
6
Total
15,000 18,000 15,000 20,000 22,000 24,000 114,000
A single worker working for one month can produce 125 units. The beginning
workforce is 50 workers. It costs the company $1,500 to hire one worker, and it
costs the company $2,500 to lay off a worker. The cost to carry an item is $15 per
unit per month. The stockout cost is estimated to be $40 per unit.
Develop a chase sales and operations plan for this firm. Develop the monthly
production schedule, and show the labor workforce and inventory levels. Finally,
compute the cost of the plan.
![Chase SOP
1. A company has predicted the following demands for the next six months:
Month
2
Demand 15,000 18,000
3
15,000 20,000
5
6
22,000 24,000
Total
114,000
A single worker working for one month can produce 125 units. The beginning
workforce is 50 workers. It costs the company $1,500 to hire one worker, and it
costs the company $2,500 to lay off a worker. The cost to carry an item is $15 per
unit per month. The stockout cost is estimated to be $40 per unit.
Develop a chase sales and operations plan for this firm. Develop the monthly
production schedule, and show the labor workforce and inventory levels. Finally,
compute the cost of the plan.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F505f2121-ef48-4ee3-bd1d-a86da15ead2d%2F8032ca6b-9680-47af-932d-3270aa1b633c%2Fxno1ykp_processed.png&w=3840&q=75)
Transcribed Image Text:Chase SOP
1. A company has predicted the following demands for the next six months:
Month
2
Demand 15,000 18,000
3
15,000 20,000
5
6
22,000 24,000
Total
114,000
A single worker working for one month can produce 125 units. The beginning
workforce is 50 workers. It costs the company $1,500 to hire one worker, and it
costs the company $2,500 to lay off a worker. The cost to carry an item is $15 per
unit per month. The stockout cost is estimated to be $40 per unit.
Develop a chase sales and operations plan for this firm. Develop the monthly
production schedule, and show the labor workforce and inventory levels. Finally,
compute the cost of the plan.
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