General Operations Management III - Essay Example

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There are 4 work shifts of slack in day schedule and 5 work shifts of slack in evening schedule. The optimal solution to reduce this slack would be to use part time workers for 6 work shifts during day shifts and 5 work shifts on evening shifts in combination with 8 and 6…

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Subject: Miscellaneous
Type: Essay
Level: Undergraduate
Pages: 5 (1250 words)
Downloads: 2
Author: xtillman

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Under level capacity plan a company needs 58,125/8 hours per day*65 days=58,125/520=112 workers to satisfy the demand. c. 38,750 gallons are produced and 30,000 gallons are ordered in the first quarter. Therefore 8,750 gallons*$4 per gallon=$35,000 is the inventory cost for the first quarter. 8,750+38,750-35,000=12,500 gallons are leftover. 12,500*$4=$50,000 is the inventory cost for the second quarter. 12,500+38,750-47,000=4,250*$4=$17,000 is the inventory cost for the third quarter.

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