Grading Notes for Monarch V Average = Standard deviation = Knee Cap Score = Knee Cap Team =

Lowest Cost Solution My lowest was $1,634,980 If any team found a lower cost solution that met all the conditions stated in the case, award +1 bonus point for each $250 or fraction thereof by which their solution beats mine Subtract 1 point per $250 or fraction thereof by which any team solution exceeds my total

Recommended Solution Guidelines In this part, the students should have recognized that there are potential problems with each of the solutions provided, and proposed a solution that deals with the most glaring problems

Flat Production Rate Large ending inventory buildup Adding 44 workers in ONE period to a beginning work force size of 110

Chase Overtime Adding 30 workers in ONE period to a beginning work force size of 110 Ending inventories are very small in high selling months of June – November Overtime in July, August, and October may be too high

Chase with Workforce Hiring/Layoff Issues - examples of what might be listed include: –Hiring 23 in one period and 54 in another too much –Laying off 19, 20, 21, and 40 too demoralizing Ending inventories too low in every single month

Minimum Cost Solution Low ending inventories Peak hiring of 19 and 24 Peak layoffs of 41 Peak inventories of 4 – 6k

Recommended Solution Guidelines Should include some limits on hiring and layoffs (-5 if no hiring limits; -3 if no layoff limits) Should include some minimal ending inventories to provide safety stock for uncertain demand (-5 if no minimums) Should not allow excess inventory buildup; limit at 8000 which is ~one week production (-5 max; scaleable) Should not include excessive overtime for the size of the work force (30% upper limit; since this implies both SAT/SUN for 2 weeks and SAT for all 4 weeks) [-3 if violated]

Bonus Managerial Items (+1 each up to 5 point max) Temporary employees to avoid so much hiring/firing Part time employees Inventory risks in big buildups Quality problems could occur due to: –New employees –Moral because of hiring/layoffs –Fatigue due to overtime Is outsourcing an option? Demand management to reduce fluctuations Schedule vacations during slow season Seek complementary products Others may be acceptable