okersRWild makes playing cards in several different styles, but a “standard” deck of cards is used for planning purposes. The average worker at JokersRWild can make 10,000 sets of decks of cards per month at a cost of $2.60 per deck during regular production and $2.90 during overtime. The company currently employs 21 workers. Experience shows that it costs $1,300 to hire a worker and $1,300 to fire a worker. Inventory carrying cost is $.41 per deck per month. The beginning inventory is 38,000, and at least that amount is desired each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. Month January February March April May June Demand 200,000 160,000 200,000 450,000 460,000 630,000 a. Given the above demand estimate, develop a six-month production plan based on level production. (Leave no cells blank – be certain to enter “0” wherever required.) Level Production Plan Month Demand Regular Production Ending Inventory Number of Workers Hire Fire layoff January 200,000 350,000 188,000 35 14 0 February 160,000 350,000 378,000 35 0 0 March 200,000 350,000 528,000 35 0 0 April 450,000 350,000 428,000 35 0 0 May 460,000 350,000 318,000 35 0 0 June 630,000 350,000 38,000 35 0 0 Total 2,100,000 2,100,000 1,878,000 14 0 b. Determine the cost of the level production plan. Total cost c. Develop a six-month production plan based on chase by using overtime (no workers will be fired and inventory increases if necessary). (Leave no cells blank – be certain to enter “0” wherever required.) Chase Production Plan – Using Overtime Month Demand Regular Production Overtime Inventory Number of Workers Hire Fire layoff January 200,000 210,000 0 48,000 21 0 0 February 160,000 210,000 0 98,000 21 0 0 March 200,000 210,000 0 108,000 21 0 0 April 450,000 210,000 38,000 21 0 0 May 460,000 210,000 38,000 21 0 0 June 630,000 210,000 38,000 21 0 0 Total 2,100,000 1,260,000 0 368,000 0 0 d. Determine the cost of the chase production plan. Total cost e. Develop a six-month production plan based on chase by changing workforce level. (Leave no cells blank – be certain to enter “0” wherever required.) Chase Production Plan – Changing Workforce Level Month Demand Regular Production Ending Inventory Number of Workers Hire Fire layoff January 200,000 200,000 38,000 20 0 1 February 160,000 160,000 38,000 16 0 4 March 200,000 200,000 38,000 20 4 0 April 450,000 450,000 38,000 45 25 0 May 460,000 460,000 38,000 46 1 0 June 630,000 630,000 38,000 63 17 0 Total 2,100,000 2,100,000 228,000 47 5 f. Determine the cost of the chase production plan by changing workforce level. Total cost

okersRWild makes playing cards in several different styles, but a “standard” deck of cards is used for planning purposes. The average worker at JokersRWild can make 10,000 sets of decks of cards per month at a cost of $2.60 per deck during regular production and $2.90 during overtime. The company currently employs 21 workers. Experience shows that it costs $1,300 to hire a worker and $1,300 to fire a worker. Inventory carrying cost is $.41 per deck per month.

The beginning

AllEscort