Month Jan Feb Mar Apr May

BI 200
Demand 500 600 650 800 900
net demand
Production / worker/day
Production /worker/month
number of workers
days in the month 22 19 21 21 22
Total production
Excess
Defict
workers hired
workers lay of
Idle time or capacity
OT production
Subcontracting production
Inventory
Idle time cost
Inventory holding cost
hiring cost
Layof cost
Subcontracting cost

Regular time cost

stockout cost
material cost
Jun

800 Vary workforce to meet demand

Vary Inventory level with current workforce

Vary work force and use OT

20
Meet demand by using OT and subcontracting

Material cost 100 per unit

Inventory holding cost 10 / unit / month
stockout cost 20 / unit
Subcontracting cost (including material) 200
hiring cost 50 per worker
lay off cost 100 per worker
Labour hours required 4 per unit
regular time cost 12.50 per hour
Over time cost 18.75 per hour
beginning inventory 200
Maximum 10% of
Overtime production capacity
number of workers 10
idle time cost 25 per unit
ans- Vary workforce to meet demand

Month Jan Feb Mar Apr May Jun

BI 200 0 0 0 0 0
Demand 500 600 650 800 900 800
net demand 300 600 650 800 900 800
Production / worker/day 2 2 2 2 2 2
Production /worker/month 44 38 42 42 44 40
number of workers 10 7 16 16 20 21
days in the month 22 19 21 21 22 20
Total production 440 266 672 672 880 840
Excess 140 - 22 - - 40
Defict 334 - 128 20 -
workers hired - 9 - 4 1 -
workers lay of 3 - - - - 1
Idle time or capacity 8 8 22 40 24 0
OT production - - - - - -
Subcontracting production - - - - - -
Inventory - - - - - -
Idle time cost 200 200 550 1000 600 -
Inventory holding cost - - - - - -
hiring cost - 450 - 200 50 -
Layof cost 300 - - - - 100
Subcontracting cost - - - - - -
Regular time cost 15400 30400 33600 42000 46200 40000
stockout cost - - - - - -
material cost 30000 60000 65000 80000 90000 80000
ans- Vary Inventory level with current workforce

Month Jan Feb Mar Apr May Jun

BI 200 140 0 0 0 0
Demand 500 600 650 800 900 800
net demand 300 460 650 800 900 800
Production / worker/day 2 2 2 2 2 2
Production /worker/month 44 38 42 42 44 40
number of workers 10 10 10 10 10 10
days in the month 22 19 21 21 22 20
Total production 440 380 420 420 440 400
Excess 140 - - - - -
Defict - 80 230 380 460 400
workers hired - - - - - -
workers lay of - - - - - -
Idle time or capacity - - - - - -
OT production - - - - - -
Subcontracting production - - - - - -
Inventory 140 - - - - -
Idle time cost - - - - - -
Inventory holding cost 1400 - - - - -
hiring cost - - - - - -
Layof cost - - - - - -
Subcontracting cost - - - - - -
Regular time cost 22000 19000 21000 21000 22000 20000
stockout cost - 1600 4600 7600 9200 8000
material cost 44000 38000 42000 42000 44000 40000
ans- Vary work force and use OT

Month Jan Feb Mar Apr May Jun

BI 200 0 0 0 0 0
Demand 500 600 650 800 900 800
net demand 300 600 650 800 900 800
Production / worker/day 2 2 2 2 2 2
Production /worker/month 44 38 42 42 44 40
number of workers 10 7 16 16 18 19
days in the month 22 19 21 21 22 20
Total production 440 266 672 672 792 760
Excess 140 22 - - -
Defict - 334 - 128 108 40
workers hired - 9 - 2 1 -
workers lay of 3 - - - - -
Idle time or capacity 8 35 22 24 16 36
OT production - 27 - 68 80 40
Subcontracting production - - - - - -
Inventory - - - - -
Idle time cost 200 875 550 600 400 900
Inventory holding cost - - - - - -
hiring cost - 450 - 100 50 -
Layof cost 300 - - - - -
Subcontracting cost - - - - - -
Regular time cost 15400 30400 33600 37800 41800 38000
stockout cost - - - - - -
material cost 30000 60000 65000 80000 90000 80000
ans- Meet demand by using OT and subcontracting

Month Jan Feb Mar Apr May Jun

BI 200 140 0 0 0 0
Demand 500 600 650 800 900 800
net demand 300 460 650 800 900 800
Production / worker/day 2 2 2 2 2 2
Production /worker/month 44 38 42 42 44 40
number of workers 10 10 10 10 10 10
days in the month 22 19 21 21 22 20
Total production 440 380 420 420 440 400
Excess 140 - - - - -
Defict - 80 230 380 460 400
workers hired - - - - - -
workers lay of - - - - - -
Idle time or capacity - - - - -
OT production - 38 42 42 44 40
Subcontracting production - 42 188 338 416 360
Inventory 140 - - - - -
Idle time cost - - - - - -
Inventory holding cost 1400 - - - - -
hiring cost - - - - - -
Layof cost - - - - - -
Subcontracting cost - 8400 37600 67600 83200 72000
Regular time cost 22000 19000 21000 21000 22000 20000
stockout cost - - - - - -
material cost 44000 41800 46200 46200 48400 44000