Problem:
Question 1) Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem.
The monthly forecasts for Product X for January, February, and March are 940, 1,530, and 1,200, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 450 units.
Manufacturing cost is $240 per unit, storage cost is $6 per unit per month, standard pay rate is $6 per hour, overtime rate is $9 per hour, cost of stockout is $8 per unit per month, hiring and training cost is $170 per worker, layoff cost is $270 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 41 workers and that they work 8 hours per day. (Round Workers Required up to the next higher whole number. Round all other variables off to the nearest whole number. Use previous rounded answers as required to compute subsequent answers. Input all values as positive values. Leave no cells blank - be certain to enter "0" wherever required.). Provide thorough explanation of the given question.