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How would you modify the workforce to reduce cost?

What would be the cost of the 46-worker production plan? Assume the following costs: • Holding Cost (per unit per month): $8.Starting inver Ending invent 200 100 K= 0.342105263 units/worker*day Holding cost per unit per month 8.5 hiring cost per work

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Answer #1
Month Month(t) Forecasted Demand Net demand Cumulative net demand Working days No. of workers Production plan Cumulative production Inventory Workers hired Workers fired
0 0 0 0 0 0 0 0 0
January 1 420 220 220 22 40

=(0.34*8.5)+(800*40)+(1250*40)+(75*31)+(50*0.34)

= 84403

 84403 200

= (84403/420)

= 200
February 2 280 280 500 16 40

(800*40)+(1250*40)+(75*31)+(50*0.34)

84400

 168803

= (84403/280)

= 301
March 3 460 460 960 23 40

(800*40)+(1250*40)+(75*31)+(50*0.34)

84403

 253206

= (84403/460)

= 183
April 4 190 190 1150 20 40

(800*40)+(1250*40)+(75*31)+(50*0.34)

84402

 337608

= (84402/190)

= 445
May 5 310 310 1460 21 40

(800*40)+(1250*40)+(75*31)+(50*0.34)

84403

 422011

= (84403/420)

= 200
June 6 145 145 1605 22 40

(800*40)+(1250*40)+(75*31)+(50*0.34)

84402

 506413

= (84402/145)

= 582
July 7 110 110 1715 21 40

(800*40)+(1250*40)+(75*31)+(50*0.34)

84403

 590816

= (84403/110)

= 777
August 8 125 125 1940 22 40

(800*40)+(1250*40)+(75*31)+(50*0.34)

= 84403

 675219 100

= (84403/125)

= 676
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