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SOP - Exercise

The document presents a production and demand forecast for eight months, detailing the required workforce adjustments, including hiring and firing needs. It compares two production strategies: one with a constant production rate and another that adjusts production to match demand. Additionally, it summarizes seasonal demand and inventory management costs, highlighting the total costs associated with each strategy.

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vandole33
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31 views3 pages

SOP - Exercise

The document presents a production and demand forecast for eight months, detailing the required workforce adjustments, including hiring and firing needs. It compares two production strategies: one with a constant production rate and another that adjusts production to match demand. Additionally, it summarizes seasonal demand and inventory management costs, highlighting the total costs associated with each strategy.

Uploaded by

vandole33
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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LEVEL

DEMAND PRODUCTION ENDING REQUIREMENT


MONTH HIRE FIRE
FORECAST RATE INVENTORY WORKERS
1 120 130 50 13 2
2 130 130 50 13
3 140 130 40 13
4 120 130 50 13
5 130 130 50 13
6 120 130 60 13
7 140 130 50 13
8 140 130 40 13
Cost 1,040 $ 62,400 780 400

CHASE 0 0
DEMAND PRODUCTION ENDING REQUIREMENT
MONTH HIRE FIRE
FORECAST RATE INVENTORY WORKERS
1 120 120 40 12.00 3
2 130 130 40 13.00 1
3 140 140 40 14.00 1
4 120 120 40 12.00 2
5 130 130 40 13.00 1
6 120 120 40 12.00 1
7 140 140 40 14.00 2
8 140 140 40 14.00
Cost $ 62,400 640 500 1,200

DEMAND PRODUCTION ENDING REQUIREMENT


Season HIRE FIRE
FORECAST RATE INVENTORY WORKERS
Fall 10,000 10,000 1,200 40 10
Winter 7,000 7,000 1,200 28 12
Spring 7,000 7,000 1,200 28 -
Summer 12,000 12,000 1,200 48 20
Total 7,200,000
ENDING
BEGINNING INVENTORY INVENT
ORY 0
Inventory carrying cost per
Production cost(based
month per unit per unit
on
ending monthly inventory)
Hiring cost per worker
Firing cost per worker
Beginning number of workers
Productivity per month

$ 63,580

$ 64,740
people
units

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