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  • Compare aggregate costs of two workforce plans over 6 months

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    محمد إخوان
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    The document provides two aggregate plans to maintain production levels over a 6 month period: a) Maintain a constant workforce and use overtime and subcontracting to meet monthly output forecasts. This results in a total cost of $54225. b) Hire and lay off workers each month to exactly meet output forecasts. This requires more subcontracting and hiring/layoff costs, resulting in a higher total cost of $639225. The document compares the total costs of keeping a constant workforce versus varying workforce levels each month to meet production needs.

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    Aggregiate Plan P0M Assgmnt Indiv

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    The document provides two aggregate plans to maintain production levels over a 6 month period: a) Maintain a constant workforce and use overtime and subcontracting to meet monthly output forecasts. This results in a total cost of $54225. b) Hire and lay off workers each month to exactly meet output forecasts. This requires more subcontracting and hiring/layoff costs, resulting in a higher total cost of $639225. The document compares the total costs of keeping a constant workforce versus varying workforce levels each month to meet production needs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
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    4 views2 pages

    Compare aggregate costs of two workforce plans over 6 months

    Uploaded by

    محمد إخوان
    The document provides two aggregate plans to maintain production levels over a 6 month period: a) Maintain a constant workforce and use overtime and subcontracting to meet monthly output forecasts. This results in a total cost of $54225. b) Hire and lay off workers each month to exactly meet output forecasts. This requires more subcontracting and hiring/layoff costs, resulting in a higher total cost of $639225. The document compares the total costs of keeping a constant workforce versus varying workforce levels each month to meet production needs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Prepare an aggregate plan and compare the total cost using the following plans:

    a)Maintain a constant workforce level through the 6 month period


    Period
    Forecast
    Output
    Regular
    Overtime
    Subcontract
    Output
    Forecast
    Inventory
    Beginning
    Ending
    Average
    Backlog
    Costs
    Regular
    Overtime
    Subcontract
    Hire/Layoff
    Inventory
    Backorders
    TOTAL

    1
    900

    2
    700

    3
    800

    4
    1200

    5
    1500

    6
    1100

    TOTAL
    6200

    1100

    900

    1050

    1050

    1100

    1000

    6200

    200

    200

    250

    (150.00)

    (400.00)

    (100.00)

    0
    200
    100
    0

    200
    400
    300
    0

    400
    650
    525
    0

    650
    500
    575
    0

    500
    100
    300
    0

    100
    0
    50
    0

    8800

    7200

    8400

    8400

    8800

    8000

    49600

    250
    0
    9050

    750
    0
    7950

    1312.5
    0
    9712.5

    1437.5
    0
    9837.5

    750
    0
    9550

    125
    0
    8125

    4625
    0
    54225

    b)Hire and lay off workers to produce exact monthly requirement


    Period
    Forecast
    Output
    Regular
    Overtime

    1
    900

    2
    700

    3
    800

    4
    1200

    5
    1500

    6
    1100

    TOTAL
    6200

    1100

    900

    1050

    1050

    1100

    1000

    6200

    Output Forecast

    200

    200

    250

    (150.00)

    (400.00)

    (100.00)

    Inventory
    Beginning
    Ending
    Average
    Backlog

    0
    200
    100
    0

    200
    400
    300
    0

    400
    650
    525
    0

    650
    500
    575
    0

    500
    100
    300
    0

    100
    0
    50
    0

    Subcontract

    Costs
    Regular
    Overtime
    Subcontract
    Hire/Layoff

    8800

    7200

    8400

    8400

    8800

    8000

    49600

    120000

    120000

    150000

    45000

    120000

    30000

    585000

    Inventory
    Backorders
    TOTAL

    250
    0
    129050

    750
    0
    127950

    1312.5
    0
    159712.5

    1437.5
    0
    54837.5

    750
    0
    129550

    125
    0
    38125

    4625
    0
    639225

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