Workout Questions
1. Demand for Quantum Corporation's action toy series follows a seasonal pattern growing through the fall months and culminating in December, with smaller peaks in January (for after season markdowns, exchanges, and accessory purchases) and July (for Christmas-in-July specials).
| Periods |
1 |
2 |
3 |
4 |
5 |
6 |
| Demand |
1000 |
800 |
800 |
1400 |
900 |
900 |
Each worker can produce on average 100 cases of action toys each month. Overtime is limited to 300 cases. No action toys are currently in inventory. The regular production cost is $10 per case, and $15 per case for overtime production. Holding cost is $1 per case per month. The backlog cost is $5 per unit per period. The corporation now has 8 permanent workers. Determine the total cost of production for the following plans.
a. The manager considers a level production plan that would indicate hiring two people to start working in the first period, one on a temporary basis who would work only from period 3 to 6. This would cost $400 in addition to unit production costs.
b. Produce to meet demand each month, if increasing the workforce costs approximately $1000 per worker; decreasing the workforce costs $500 per worker.
2. Five jobs are waiting for processing through two work centers. Their processing time (in minutes) at each work center is contained in the table below. Each job requires work center Alpha before work center Beta.
|
Job
|
Alpha
|
Beta
|
|
R
|
8
|
7
|
|
S
|
9
|
4
|
|
T
|
7
|
9
|
|
U
|
3
|
4
|
|
V
|
12
|
5
|
Calculate the completion time using the Johnson's rule.