Production plan when forecast is available only one month in adv
Month November december total cost Example- Rajasthan S
Salary Jaipur. It export its ty No. of units to be produced 2000 3000 at Zurich. No. of workers required 20 30 1. In the Last week o salary @ Rs. 4000 per worker 80000 120000 200000 month of November. Hiring Cost 2. In the last week of No. of worker hired 0 5 3. A worker produce Hiring cost @ Rs. 500 per worker 0 2500 2500 4.In October, there a Laying-off cost 5.The salary to the w No. of worker laid-off 5 0 6. Cost of hiring a wo 7. company has to gi Laying-off cost @ Rs. 800 per worker 4000 0 4000 8.inventory carrying Inventory cost 9.There were 25work No. of units in inventory 0 0 cost @Rs.10 per unit 0 0 0 Grand Total Cost Excluding Salajry 6500
Production plan when forecast is available two months in advan
Month November december total cost Salary No. of units to be produced 2500 2500 No. of workers required 25 25 salary @ Rs. 4000 per worker 100000 100000 200000 Hiring Cost No. of worker hired 0 0 Hiring cost @ Rs. 500 per worker 0 0 0 Laying-off cost No. of worker 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 Cost Excluding Salary 5000 y one month in advance Example- Rajasthan Sari is a 100% export-oriented 5000million turnover company based at Jaipur. It export its typical Rajasthani saris to the European countries through a sales agency at Zurich. 1. In the Last week of October, the sales agency provided a forecast of 2000 saries for the month of November. 2. In the last week of November agency provided the forecast for December as 3000 saries. 3. A worker produces 100saris per month. 4.In October, there are 25 workers in the factory. 5.The salary to the worker is Rs. 4000/month. 6. Cost of hiring a worker is Rs. 500. 7. company has to give 20% of the salary as laying-off cost to the worker. 8.inventory carrying cost Rs.10/month/unit 9.There were 25workers available in month of October.