A company wants to prepare a chase production plan for the next 5 months.

The opening inventory is 100 units, and

inventory is 80 units. Each period has the same number of working days and there are no back orders. The cost of c
per unit at the end of each period. The cost of changing the level of production is $20 per unit.

Level

Period
Forecast
Production
Inventory
Cost

100

1
110
116
106
530

2
120
116
102
510

3
130
116
88
440

4
120
116
84
420

5
120
116
80
400
Total

Chase

Period
Forecast
Production
100
Change in production
Cost of changing prod.
Inventory
100
Cost of inventory

1
110
110
10
200
100
500

2
120
120
10
200
100
500

3
130
130
10
200
100
500

4
120
120
-10
200
100
500

5
120
120
0
0
100
500
Total

ing inventory is 100 units, and the planned ending

no back orders. The cost of carrying inventory is $5
$20 per unit.

Total
600
Total production requirement
Production per period

2,300.00

2,300.00

Total

800.00

2,500.00

3,300.00

580
116

Period
Forecast (Demand)
Planned Production
Planned Inventory
Workforce
Cost of hiring
Cost of firing
Cost of labor
Holding cost
Total production requirement
Production per period
Production per worker per month
Salary per worker

120
12

May
200
472
392
15
120
0
24000
3136

Jun
500
472
364
15
0
0
24000
2912

2830
472
32
1600

Jul
300
472
536
15
0
0
24000
4288

Aug
550
472
458
15
0
0
24000
3664

Sep
600
472
330
15
0
0
24000
2640

Oct
700
472
102
15
0
0
24000
816
Total

Total
2850

$
$
$
$

120.00
144,000.00
17,456.00

161,576.00

Period
Forecast (Demand)
Planned Production
Planned Inventory
Workforce
Cost of hiring
Cost of firing
Cost of labor
Holding cost

120
12

May
200
180
100
6
0
480
9600
800

Jun
500
500
100
16
400
0
25600
800

Total production requirement

Production per period
Production per worker per month
Salary per worker

32
1600

Jul
300
300
100
10
0
480
16000
800

Aug
550
550
100
18
320
0
28800
800

Sep
600
600
100
19
40
0
30400
800

Oct
700
700
100
22
120
0
35200
800
Total

Total

$
$
$
$

880.00
960.00
145,600.00
4,800.00

152,240.00

Period
Forecast (Demand)
Planned Production
Subcontracting
Planned Inventory
Workforce
Cost of hiring/firing
Cost of labor
Cost of subcontracting
Holding cost

120
12

May
200
200
0
120
7
400
11200
0
960

Jun
500
200
280
100
7
0
11200
19600
800

Total production requirement

Production per period
Production per worker per month
Salary per worker

200
32
1600

Jul
300
200
100
100
7
0
11200
7000
800

Aug
550
200
350
100
7
0
11200
24500
800

Sep
600
200
400
100
7
0
11200
28000
800

Oct
700
200
500
100
7
0
11200
35000
800

Total

Total

400
67200
114100
4960

186,660.00

Period
Forecast (Demand)
Planned Production
Subcontracting
Planned Inventory
Workforce
Cost of hiring/firing
Cost of labor
Cost of subcontracting
Holding cost
Total production requirement
Production per period
Production per worker per month
Salary per worker

May
200

120
12

Jun
500

Jul
300

Aug
550

Sep
600

Oct
700

Total

Total