Rajasthan Saris is a 100% export-oriented 5,000 milion turnover company based at Jaipur.

It Export its typical Raj

In the last week of October, the sales agency provides a forecast of 2,000
In the last week of November, the agency provides a forecast of 3,000
A worker produces 100 saris per month. In october, there are 2
A salary of Rs. 4,000 per month is paid to a worker. The company has estimated that the cost
The company has to give 20% of the salary as laying-off cost to a worker (When a work
The inventory carrying cost (CC) is Rs. 10 per sari
Prepare the Aggregate Production Plan for the
ipur. It Export its typical Rajasthani saris to the European countries through a sales agency based at Zurich.
vides a forecast of 2,000 saris for the month of November.
des a forecast of 3,000 saris for the month of December.
h. In october, there are 25 workers in the factory.
estimated that the cost of hiring a worker (Which includes Training) is Rs. 500.
a worker (When a worker is discontinued from work in the next month).
st (CC) is Rs. 10 per sari per month.
Production Plan for the Company.
 Production Plan When Forecast is available only one month in advance
Month November December Total Cost
Salary
No. Of Units to be produced 2000 3000

No. of Workers required 20 30 Each worker produces 10

Salary (Rs. 4000 Per Worker) 80000 120000 200000
Hiring Cost
No. of Workers hired 0 10
Hiring Cost Rs. 500 Per Worker 0 5000 5000
Laying-Off Cost
No. of Workers laid-off 5 0
Laying-Off Cost Rs. 800 per worker 4000 0 4000 20% of Salary i.e.4000 (40
Inventory Cost
No. of Units in Inventory 0 0
Cost Rs. 10 per unit 0 0 0
Grand Total of cost Excluding Salary 9000

Production Plan When Forecast is available two month in advance

Month November December Total Cost
Salary
No. Of Units to be produced 2500 2500
No. of Workers required 25 25 Each worker produces 10
Salary (Rs. 4000 Per Worker) 100000 100000 200000
Hiring Cost
No. of Workers hired 0 0
Hiring Cost Rs. 500 Per Worker 0 0 0
Laying-Off Cost
No. of Workers laid-off 0 0
Laying-Off Cost Rs. 800 per worker 0 0 0
Inventory Cost
No. of Units in Inventory 500 0
Cost Rs. 10 per unit 5000 0 5000
Grand Total of cost Excluding Salary 5000
Each worker produces 100 saris per month. So in november 20 workers required and in December 30 workers required

20% of Salary i.e.4000 (4000*20)/100 = 800 Rs.

Each worker produces 100 saris per month. So in november 25 workers required and in December 25 workers required