ISE 140 HW 2: Due September 30th.

1. Poseidon Meter, Inc., makes a variety of water meters. Data for the past year indicate a worker can make, on average, 100 meters per four-week period. The forecast for the next four periods is 1700, 2500, 2500, and 1700 meters, respectively.

Beginning inventory 0 units
Initial workforce size 20 workers

Production and costs
Wages $1,000/worker/period
Inventory $2/meter/period (based on average inventory during each period)
Back order $3/meter/period (based on back orders at end of period )
Hiring $500/worker
Layoff $1,000/worker

Develop a constant work force plan for the next four periods. Summarize the plan, its costs, and its consequences.

2. The Bi-Product Company produces two products (A and B). At the end of this year, the company is developing a sales and operations plan for the coming year. Both products (end items) utilize the same engines and many of the same parts. They require the same assembly time and employee labor skills. The available planning information is as follows:

Demand Forecasts
Quarter Product A Product B
1 21,000 20,500
2 19, 5 00 16,700
3 15,200 1 9,500
4 15,000 17,500

Anticipated Quarter 1
Beginning inventory 500 units of Product A
400 units of Product B

Production and costs
Regular time $20.00 per unit
Overtime $25.50 per unit
Subcontract $40.00 per unit
Part-time $45.00 per unit
Inventory $5.00 per unit per quarter ( based on average
Inventory during each quarter )
Back order $20.00 per unit per quarter (based on back orders at end of quarter)
Hiring $500.00 per full-time employee (no cost if part-time)
Layoff $2,000.00 per full-time employee (no cost if part-time)

Production rates
Regular 1200 units per full-time employee per…