Production plan for MacPherson Refrigeration Limited

Productivity (units per worker
per month)
40
Regular time wage
($/worker/month)
$2,400
Overtime wage ($/worker/month)
$3,300
Hiring cost per
worker hired
$1,800
Layoff cost per
worker laid off
$1,200
Inventory
Holding
Cost/Month
$8
Month
Production
Plan
Shipment
Forecast
Production Plan
Shipments
Production
Capacity
Inventory
Inventory
Capacity
Extradorinary
Labor Costs
Hirings
Layoffs
Worker Months
Overtime
Number of
Workers
Max Layoffs
(100%)
Max Overtime
(100%)**
Cost of
Alternative 1
Hiring Costs
Layoff Costs
Inventory
Holding Costs
Regular Labor
Optima Labor
Total Costs

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec

Totals

4400
6400
4400

4400
6400
4400

6000
6400
6000

8000
6400
8000

6600
9480
6600

11800
9480
11800

13000
9480
13000

11200
11120
11200

10800
10800
10800

7600
7600
7600

6000
6000
6000

5600
5600
5600

95,400
95,160
95,400

240

6400
2,240

6400
4,240

6400
4,640

6400
3,040

9480
5,920

9480
3,600

9480
80

11120
0

10800
0

7600
0

6000
0

5600
0

95,160
23,760

6000

6000

6000

6000

6000

6000

6000

6000

6000

6000

6000

6000

6000

72,000

0
0

0
0

0
0

0
0

77
0

0
0

0
0

0
0

0
0

0
47

0
40

0
10

77
97

0

0

0

0

0

0

0

40.99999992

32.99999993

0

0

0

74

160

160

160

160

160

237

237

237

237

237

190

150

140

2,305

100%

160

160

160

160

237

237

237

237

237

190

150

140

2,305

100%

0

0

0

0

0

0

0

40.99999992

32.99999993

0

0

0

74

$138,600
$116,400
$190,080.00
$5,532,000
$244,200
$6,221,280