Exercise- I : Cost Calculation for Varying Workforce To Match Demand

Period 1 2 3 4 5 6 7 8 9 Total
Productin Forecast (Units/Month) 40 25 55 30 30 50 30 60 40
Number of workers required 10 7 14 8 8 13 8 15 10
Number of workers hired 0 7 0 5 7
Number of workers laid-off 0 3 6 0 5 5
Regular time cost 48000 33600 67200 38400 38400 62400 38400 72000 48000 446400
Hiring Cost 0 0 4200 0 0 3000 0 4200 0 11400
Lay off Cost 0 1500 0 3000 0 0 2500 0 2500 9500
Inventory Carrying cost (10 units in SS) 350 350 350 350 350 350 350 350 350 3150
Grand Total 470450

Strategy: Chase Demand Strategy by varying workforce