1) Voldek Company manufactures several models of paper shredders. The projected requirements over the next year for their product are as follows:

1) Voldek Company manufactures several models of paper shredders. The projected requirements over the next year for their product are as follows: January 800, February 1,030, March 810, April 900, May 950, June 1,340, July 1,100, August 1,210, September 600, October 580, November 890, December 1,000.

Current inventory is 300 units. Current capacity is 2,880 units per month. The average salary of production workers is $3,900 per month. Material costs $360/unit. Each production worker accounts for 90 units per month. Overtime rate is paid at time and a half. Any increase or decrease in the production rate costs $150/unit for tooling, setup, and line changes. This does not apply, however, to overtime. Inventory-holding costs are $75 per unit per month. Lost sales are valued at $225 per unit.

a. Compute for the cost of level demand production.

b. Compute for the cost of chase demand production plans.

c. Recommend a plan of action to the production manager.

2) These jobs need to be scheduled on one machine:

Job - 1

Processing time in mins - 200

Job - 2

Processing time in mins - 260

Job - 3

Processing time in mins - 420

Job - 4

Processing time in mins - 180

Job - 5

Processing time in mins - 300

Job - 6

Processing time in mins - 160

Job - 7

Processing time in mins - 90

Job - 8

Processing time in mins - 130

Job - 9

Processing time in mins - 210

a. Process the jobs in their numerical order. Determine the average flowtime in hours after each job is completed.

b. Determine the order the jobs would be processed using the SPT rule. Determine the flowtime using SPT.

c. Compare your answer with the one you had for problem 2a, then suggest what is the better approach. Explain your answer.