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SKC Engineering Sdn Bhd manufacturer of roofing supplies has developed monthly forecasts for an important producer and presented the 6 - month period January to

SKC Engineering Sdn Bhd manufacturer of roofing supplies has developed monthly forecasts for an important producer and presented the 6-month period January to June in table below.
Month Expected demand (Units) Production days (Units) Demand per day (days)
Jan 9002241
Feb 7001839
March 8002138
April 1,2002157
May 1,5002268
June 1,1002055
Total 6,200124
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 1.6 hours per unit
Cost of increasing production rate (hiring) RM10 per unit
Cost of decreasing production rate (layoffs) RM15 per unit
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 SKC Engineering Sdn Bhd.

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