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Workforce Planning and Cost Analysis

The document outlines a production planning model with the goal of minimizing total costs. It includes inputs like workforce size, production rates, costs per shirt for regular and overtime production. The model tracks inventory levels and costs like hiring, firing, inventory holding over multiple months. It aims to determine the optimal workforce levels and production quantities to meet a forecasted demand while staying under budget.

Uploaded by

Uchenna 'Bonex' Ogbonna
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140 views4 pages

Workforce Planning and Cost Analysis

The document outlines a production planning model with the goal of minimizing total costs. It includes inputs like workforce size, production rates, costs per shirt for regular and overtime production. The model tracks inventory levels and costs like hiring, firing, inventory holding over multiple months. It aims to determine the optimal workforce levels and production quantities to meet a forecasted demand while staying under budget.

Uploaded by

Uchenna 'Bonex' Ogbonna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
  • Monthly Production and Cost Analysis: This section outlines the monthly breakdown of production variables and cost factors, highlighting decision variables, starting workforce, and inventory costs.
  • Supplementary Cost Data: Provides additional data focusing on inventory and overtime capacities required for production adjustments.

Inputs in blue

decision variables in gold


objective in yellow
Starting work force 10 (number of associates)
Production rate 500 (shirts per month per associate)
Overtime cap 100 (shirts per month per associate)

Cost per shirt (regular time) $14


Cost per shirt (overtime producti $18
Cost to Hire $1,200
Cost to Fire $1,200

Initial Inventory 0
Inventory holding cost $0.28 (cost per month per shirt)

regular
Month Forecast Hire Fire Workforce production
0
1 4000 0 0 10 5000
2 5000 2 0 12 6000
3 4000 0 0 12 6000
4 10000 0 0 12 6000
5 5000 0 2 10 5000
6 4000 0 0 10 5000

$1,200 $1,200 $14


Costs $2,400 $2,400 $0 $462,000

Total Cost $469,040


nth per associate)
nth per associate)

overtime regular Overtime


production Inventory Workforce production capacity Inventory
10 0
0 1000 10 5000 1000 1,000
0 2000 12 6000 1200 2,000
0 4000 12 6000 1200 4,000
0 0 12 6000 1200 0
0 0 10 5000 1000 0
0 1000 10 5000 1000 1,000

$18 $0.28
$0 $2,240 $462,000 $2,240
Inputs in blue
decision variables in gold
objective in yellow
Starting work force 10 (number of associates)
Production rate 500 (shirts per month per associate)
Overtime cap 100 (shirts per month per associate)

Cost per shirt (regular time) $14


Cost per shirt (overtime producti $18
Cost to Hire $1,200
Cost to Fire $1,200

Initial Inventory 0
Inventory holding cost $0.28 (cost per month per shirt)

regular
Month Forecast Hire Fire Workforce production
0 10
1 4000 0 0 10 5000
2 5000 2 0 12 6000
3 4000 0 0 12 6000
4 10000 0 0 12 6000
5 5000 0 2 10 5000
6 4000 0 0 10 5000

Costs $2,400 $2,400 $462,000

Total Cost $469,040


onth per associate)
onth per associate)

nth per shirt)

overtime Overtime
production capacity Inventory
0
0 1000 1,000
0 1200 2,000
0 1200 4,000
0 1200 0
0 1000 0
0 1000 1,000

$0 $2,240

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