Production rate per employee is 2 per day
Use a chase production strategy. Yet, the number of full-time employees hired or fired is restricted to five employees per month. During peak demand periods, the company has the option of using overtime to meet any excess demand. Regular production cost is $200 per unit and overtime cost is $300 per unit. Hiring and training an employee costs $400. The per-employee layoff cost is $300. The current workforce size is 25 full-time employees whose regular production rate is two air conditioners per day. Compute the total cost of this plan. Complete the following table. Nov Dec Jan 700 Feb 850 Mar 900 Apr 1,000 May 1,250 Jun 1,350 Jul 1,450 Aug 1,300 Sep 1,000 Oct 880 Forecast 720 600 Beginning Inventory 180 Number Number Number Number Number Number Number Number Number Number Number of working days - 22 20 23 22 24 22 23 17 21 22 20 20 Regular production 880 800 Number Number Number Number Number Number Number Number Number Number Overtime production units 0 0 0 0 Number Number Number of workers required 16 Number Number Number Number Number Number Number Number Number Number Number of workers hired Number Number Number Number Number Number Number Number Number Number Number of workers fired Number Number Number Number Number Number Number Number Number Number Workers on payroll 20 17 Number Number Number Number Number Number Number Number Number Number Ending inventory 180 30 Number Number Number Number Number Number Number Number Number Number Average Inventory 180 105 Number Number Number Number Number Number Number Number Number Number Total Cost = Number Use a chase production strategy. Yet, the number of full-time employees hired or fired is restricted to five employees per month. During peak demand periods, the company has the option of using overtime to meet any excess demand. Regular production cost is $200 per unit and overtime cost is $300 per unit. Hiring and training an employee costs $400. The per-employee layoff cost is $300. The current workforce size is 25 full-time employees whose regular production rate is two air conditioners per day. Compute the total cost of this plan. Complete the following table. Nov Dec Jan 700 Feb 850 Mar 900 Apr 1,000 May 1,250 Jun 1,350 Jul 1,450 Aug 1,300 Sep 1,000 Oct 880 Forecast 720 600 Beginning Inventory 180 Number Number Number Number Number Number Number Number Number Number Number of working days - 22 20 23 22 24 22 23 17 21 22 20 20 Regular production 880 800 Number Number Number Number Number Number Number Number Number Number Overtime production units 0 0 0 0 Number Number Number of workers required 16 Number Number Number Number Number Number Number Number Number Number Number of workers hired Number Number Number Number Number Number Number Number Number Number Number of workers fired Number Number Number Number Number Number Number Number Number Number Workers on payroll 20 17 Number Number Number Number Number Number Number Number Number Number Ending inventory 180 30 Number Number Number Number Number Number Number Number Number Number Average Inventory 180 105 Number Number Number Number Number Number Number Number Number Number Total Cost = Number
