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Gantt chart and Chewy Candy Company

1. Six jobs must be processed through machine A and then B as shown below. The processing time for each job is also shown.
Machine (minutes)
Job A B
1 10 6
2 6 12
3 7 7
4 8 4
5 3 9
6 6 8

a. Develop a Gantt chart to determine the total time required to process all six jobs. Use the following sequence of jobs: 1,2,3,4,5,6.
b. Can you develop a better sequence to reduce the total time required for processing?

2. The Chewy Candy Company would like to determine an aggregate production plan for the next six months. The company makes many different types of candy but feels it can plan its total production in pounds provided the mix of candy sold does not change too drastically. At the present time, the Chewy Company has 70 workers and 9,000 pounds of candy in inventory. Each worker can produce 100 pounds of candy a month and is paid $5 an hour (use 160 hours regular time per month). Overtime, at a pay rate of 150 percent of regular time, can be used up to a maximum of 20 percent in addition to regular time in any given month. It costs 80 cents to store a pound of candy for a year. $200 to hire a worker, and $500 to lay off a worker. The forecast sales for the next six months are 8,000, 10,000, 12,000, 8,000, 6,000 and 5,000 pounds of candy.

a. Determine the costs of a level production strategy for the next six months, with an ending inventory of 8,000 pounds.
b. Determine the costs of a chase strategy for the next six months.
c. Calculate the costs of using the maximum overtime for the two months of highest demand.
Assume that inventory/storage costs are per unit remaining at the end of the month.

Solution Summary

The solution provides a detailed and step-by-step explanation (incl. Excel code and Gantt chart) for the problem.

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