Please, can you explain this questions with short explanations? 4. A production

Question

Please, can you explain this questions with short explanations?

4. A production planner for the ABC Company is developing a production plan that involves backorders. Demand is as shown. Suppose that Beginning inventory-200 unites Desired ending inventory at the end of period 8-200 units Number of units produced per worker per period- 50 units Beginning number of workers-20 Holding cost per unit per period - S1 (based on average inventory) Backorder cost per unit per period $25 Hiring cost-S500 per employee Firing cost-$500 per employee

Explanation / Answer

Hi, I have given the meaning of all terms along with the formulas used. If you still have any doubt please ask

Given part in question 1 Beginning inventory is 200 units. 2 To maintain ending inventory 200 units 3 units produced per worker = 50 Explaination: 1 Demand = it is given in question 2 Production = it is given in question 2 Begining inventory = It is equal to ending inventory of last period 3 Ending Inventory = Production + Beginning Inventory - Demand (and it is given in question to maintain 200 units at the end of the period) (also begining inventory of current period shall be the ending inventory of last period, hence it is taken 200 in the question) 4 Number of workers = 20 workers in the beginning after that workers will depend on production therefore Production / 50 units = no of worker 5 Workers hired = if there is requiremnet to hire more workers than previous period depending upon the production. 6 Workers fired = if the requiremnet is less than previous period depending upon the production. 7 Average Inventory = Beginning Inventory + Ending Inventory / 2 Here, under for practical aspect providing the formulas for better explaination (a) (b) (C) (d) (e) (f) (g) (h) (i) Demand Production Beginning inventory Ending Inventory Average Inventory Backorders Number of workers #Workers hired #Workers fired (given) (given) 200 (b) + (c) - (a) (c) + (d) / 2 (b) + (c) - (a) 20 (given) Positive figures only or put zero Negative figures only or put zero (b) / 50 (New no. Of workers - previous number of workers) (New no. Of workers - previous number of workers) Positive figures only or put zero Negative figures only or put zero

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