Togo makes riding lawn mowers and tractors. The company’s expected quarterly demand is given below in the chart. The company will have 300 mowers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Below is other critical data:
Production cost per unit = $225
Inventory Carrying cost per quarter per unit = $50 (based on ending inventory)
Hiring Cost per worker = $450
Firing cost per worker = $800
Beginning # of workers = 50
Each worker can produce 110 units per quarter
Complete the tables and calculate the cost of the two plans
LEVEL Plan
Quarter
Demand
Regular Production
Ending Inventory
Workers Required
Hire
Fire
1
5000
2
9000
3
7000
4
9000
Total
30,000
CHASE PLAN
Quarter
Demand
Regular Production
Ending Inventory
Workers Required
Hire
Fire
1
5000
2
9000
3
7000
4
9000
Total
30,000
Which plan do you recommend and why?
Assignment 3
Calculate the processing load, available capacity, and develop the load profile for the stereo speaker subassembly. Two employees work the assembly process for 40 hours each.
a. Complete the load chart
b. Prepare a load profile chart from this data.
c. As the planner, what concerns do you have and what changes would you make if any?
Part Name: Stereo speaker
Processing Time =
20 minutes
Week
Week
Week
Week
Week
Week
Week
Week
1
2
3
4
5
6
7
8
Planned Order Releases
220
190
210
270
210
190
240
200
Processing Load (hours)
Available Capacity (hours)
