Zahid Hasan

ID: 1840
26th Batch

STATISTICS TOOL FOR THREE DIFFERENT PRODUCTION PLANS

Beginning Inventory
Demand Forecast
Safety Stock (0.25Demand)
Production Requirement
Working Days Per Month
Ending Inventory

January
400
1800
450
1850
22
450

February
450
1500
375
1425
19
375

March
375
1100
275
1000
21
275

April
275
900
225
850
21
225

May
225
1100
275
1150
22
275

June
275
1600
400
1725
20
400

TOTAL

8000
125

Plan 1: Exact Production- Vary Workforce

Production Requirement
Total Time Required(5hrs/unit)
Working Days Per Month
Available hrs/month/worker(8hrs/day)
Worker Required
New Workers Hired
Hiring Cost ($200/worker)
Workers Laid Off
Layoff Cost ($250/worker)
Straight Time Cost ($4/hrs)

Jan
Feb
March April
May
June
TOTAL
1850
1425
1000
850
1150
1725
9250
7125
5000
4250
5750
8625
22
19
21
21
22
20
176
152
168
168
176
160
53
47
30
26
33
54
0
0
0
0
7
21
0
0
0
0
1400
4200
5600
0
6
17
4
0
0
0
1500
4250
1000
0
0
6750
37321 28576
20160
17427 23232 34560 161306
TOTAL COST
173656

Average No of Workers = 40
Plan 2: Constant Workforce; Vary Inventory and Stockout
Jan
Feb
March April
May
June
TOTAL
Beginning Inventory
400
8
-276
-32
412
1710
Working Days Per Month
22
19
21
21
22
20
Available hrs per month (8hrs/day)
7040
6080
6720
6720
7040
6400
Actual Production (5hrs/unit)
1408
1216
1344
1344
1408
1280
Demand Forecast
1800
1500
1100
900
1100
1600
Ending Inventory
8
-276
-32
412
1710
1390
Shortage Cost ($5/unit)
0
1380
160
0
0
0
1540
Safety Stock
450
375
275
225
275
400
Unit Excess
0
0
0
187
1435
990
Inventory Cost ($1.5/unit)
0
0
0 280.5
2152.5
1485
3918
Straight Time Cost ($4/hrs)
28160 24320
26880 26880
28160
25600
160000
TOTAL COST
165458

Part 3: Constant low workforce Subcontract

Jan
Production Requirement
1850
Working Days Per Month
22
Production Requirement per Day
Available hrs per month (8hrs/day)
Actual Production (5hrs/unit)
Unit Subcontracted
Subcontracting Cost ($20/unit)
Straight Time Cost ($4/hrs)
TOTAL COST

Minimum No of Workers = 25

Feb
1425
19

March
1000
21

April
850
21

May
1150
22

June
1725
20

TOTAL