A new start-up company is conducting a SOP meeting in order to "plan ahead" to effectively address the seasonal variationappearing in the annual demand of its products. Pedro, the planning manager is considering to use a planning horizon of 6 monthsand utilize the following information:Demand ForecastNo. of Working DaysMonthJanuary1,80022February1,50019March1,10021April90021May1,10022June1,60020Cost BreakdownCost (Php)Material100 per unitInventory Holding5 per unit per monthMarginal Stock-out10 per unit per monthMarginal Cost of Subcontracting*20 per unit1,000 per workerHiring and TrainingLayoff1,500 per workerRegular Labor Cost per HourOvertime Labor Cost per Hour*Cost of buying less material costs15 per worker per hour20 per worker per hourStarting and Operating ConditionsCurrent Inventory400 unitsCurrent Workforce38 workersLabor Hours per Unit5 worker-hours / unitRegular Labor Time per Employee per Day8 hoursInventory at the End of Each Month25% of corresponding demanda. Compute the production net requirementsb. Determine the production cost of producing exactly the quantities required for each period through regular labor by varying theworkforce. Use the table below for your final solution/answer.Cost Item MonthJanuaryFebruaryMarchAprilMayJuneProduction Required WorkRequirement Labor DaysHoursMaterial LaborCostsCostsHiring FiringCostCostTotalCost

Production net requirement: Excel model: Solution:

A new start-up company is conducting a SOP meeting in order to "plan ahead" to effectively address the seasonal variation appearing in the annual demand of its products. Pedro, the planning manager is considering to use a planning horizon of 6 months and utilize the following information: Demand Forecast No. of Working Days Month January 1,800 22 February 1,500 19 March 1,100 21 April 900 21 May 1,100 22 June 1,600 20 Cost Breakdown Cost (Php) Material 100 per unit Inventory Holding 5 per unit per month Marginal Stock-out 10 per unit per month Marginal Cost of Subcontracting* Hiring and Training 20 per unit 1,000 per worker Layoff 1,500 per worker Regular Labor Cost per Hour 15 per worker per hour 20 per worker per hour Overtime Labor Cost per Hour *Cost of buying less material costs Starting and Operating Conditions Current Inventory 400 units 38 workers Current Workforce Labor Hours per Unit 5 worker-hours/ unit Regular Labor Time per Employee per Day 8 hours Inventory at the End of Each Month 25% of corresponding demand a. Compute the production net requirements b. Determine the production cost of producing exactly the quantities required for each period through regular labor by varying the workforce. Use the table below for your final solution/answer. Cost Item

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.4: Multiple Regression Models

Problem 17P: The owner of a restaurant in Bloomington, Indiana, has recorded sales data for the past 19 years. He...