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Leonard manufacturer of roofing supplies has developed monthly forecasts for an important producer and presented the 6-month period in table belo Please provided the
Leonard manufacturer of roofing supplies has developed monthly forecasts for an important producer and presented the 6-month period in table belo Please provided the calculation and justify your answer accordingly a) Analysis of Plan 1: constant workforce of 10 workers b) Analysis of Plan 2: Hiring and layoffs to meeting demand c) Recommend your answer to top management of Leonard Manufacture Month Expected demand (Units) Production days Demand per day (Units) (days) June 900 22 41 Jul 700 18 39 Aug 800 21 38 Sep 1,200 21 57 Oct 1,500 22 68 Nov 1,100 20 55 Total 6,200 124 Average requirement = 6,200/124 = 50 units per day Other Cost Information: Info Total (RM) Inventory carrying cost RM5 per unit per month Subcontracting cost per unit RM10 per unit Average pay rate RM5 per hour (RM40 per day) Overtime pay rate RM7 per hour (above 8 hrs per day) Labor-hours to produce a unit Cost of increasing production rate (hiring) Cost of decreasing production rate (layoffs) 1.6 hours per unit RM10 per unit RM15 per unit
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