Month

Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar

Demand (in units)

No. of working days

250
220
300
290
260
180
200
220
250
200
240
270

No. of workers
production rate

23
22
21
24
22
22
19
23
21
23
20
24
125
100
12.5
10

Opening stock

Production
200
180
180
90
40
0
40
30
40
0
30
-10

hr/unit/worker
days/unit
units/day

Despatch
230
220
210
240
220
220
190
230
210
230
200
240
8 hr/shift
1 shift/day

Closing stock
250
180
220
180
300
90
290
40
260
0
180
40
200
30
220
40
250
0
200
30
240
-10
270
-40

Inventory carrying cost

Backlog cost
190000
180000
135000
65000
20000
20000
35000
35000
20000
15000
15000
0
Total cost

Total Cost
0
190000
0
180000
0
135000
0
65000
0
20000
0
20000
0
35000
0
35000
0
20000
0
15000
20000
35000
80000
80000
830000

Month
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar

No. of
Demand working
(in units) days
Opening stock
250
23
220
22
300
21
290
24
260
22
180
22
200
19
220
23
250
21
200
23
240
20
270
24
No. of work
production

125
100 hr/unit/worker
12.5 days/unit
10 units/day
Available hours

Available
Required hours hours
Overtime
0
25000
23000
2000
22000
22000
0
30000
21000
9000
29000
24000
5000
26000
22000
4000
18000
22000
0
20000
19000
1000
22000
23000
0
25000
21000
4000
20000
23000
0
24000
20000
4000
27000
24000
3000
8 hr/shift
1 shift/day

1000 per day

Undertime

Overtime cost
Undertime
0
80000
0
0
0
360000
0
200000
0
160000
4000
0
0
40000
1000
0
0
160000
3000
0
0
160000
0
120000
Total cost

cost
0
0
0
0
0
80000
0
20000
0
60000
0
0

Total
80000
0
360000
200000
160000
80000
40000
20000
160000
60000
160000
120000
1440000

Additional workers
required

undertime Undertim Hiring

hours
e cost
Cost
11
24
480
82500
0
0
0
0
54
72
1440
405000
27
184
3680
202500
23
48
960
172500
0
4000
80000
0
7
64
1280
52500
0
1000
20000
0
24
32
640
180000
0
3000
60000
0
25
0
0
187500
16
72
1440
120000
Total cost

82980
0
406440
206180
173460
80000
53780
20000
180640
60000
187500
121440
1572420

Month
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar

No. of
Demand working
Hiring
Opening
(in units) days
No. of workers
cost
Firing cost Inventory
250
23
150
187500
0
220
22
150
26
300
21
150
70
290
24
150
22
260
22
150
125000
20
180
22
125
24
200
19
125
64
220
23
125
54
250
21
125
64
200
23
125
24
240
20
125
54
270
24
125
14

Productio
Closing
n
Despatch stock
276
250
264
220
252
300
288
290
264
260
220
180
190
200
230
220
210
250
230
200
200
240
240
270

overtime Inventory
Overtime
required Cost
cost
Total cost
26
0
13000
200500
70
0
48000
48000
22
0
46000
46000
20
0
21000
21000
24
0
22000
147000
64
0
44000
44000
54
0
59000
59000
64
0
59000
59000
24
0
44000
44000
54
0
39000
39000
14
0
34000
34000
0
1600
7000
64000
71000
812500

Month
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar

type 1

type 2
100
90
80
130
70
90
100
110
60
110
120
140

type 3
40
30
50
40
30
50
40
30
60
20
40
50

type 4
60
30
50
70
30
50
50
40
80
30
40
70

10
5
10
20
15
5
10
15
5
10
5
10

Demand (no. of hours)

12500
7000
12000
11250
5250
6000
10000
8750
10000
16250
7000
14000
8750
5250
6000
11250
8750
10000
12500
7000
10000
13750
5250
8000
7500
10500
16000
13750
3500
6000
15000
7000
8000
17500
8750
14000

If opening stock has postive inventory and closi

holding cost
opening stock/2 * invento
backlog cost
closing stock *backlog cos
Month
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar

type 1

Month
Apr
May
June
July
Aug

type 1

type 2
100
90
80
130
70
90
100
110
60
110
120
140

type 3
40
30
50
40
30
50
40
30
60
20
40
50

type 2
100
90
80
130
70

type 4
60
30
50
70
30
50
50
40
80
30
40
70

type 3
40
30
50
40
30

10
5
10
20
15
5
10
15
5
10
5
10

Demand (no. of hours)

12500
7000
12000
11250
5250
6000
10000
8750
10000
16250
7000
14000
8750
5250
6000
11250
8750
10000
12500
7000
10000
13750
5250
8000
7500
10500
16000
13750
3500
6000
15000
7000
8000
17500
8750
14000

10
5
10
20
15

Demand (no. of hours)

12500
7000
12000
11250
5250
6000
10000
8750
10000
16250
7000
14000
8750
5250
6000

type 4
60
30
50
70
30

Sep
Oct
Nov
Dec
Jan
Feb
Mar

Month
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar

90
100
110
60
110
120
140

type 1

50
40
30
60
20
40
50

type 2
100
90
80
130
70
90
100
110
60
110
120
140

50
50
40
80
30
40
70

type 3
40
30
50
40
30
50
40
30
60
20
40
50

5
10
15
5
10
5
10

11250
12500
13750
7500
13750
15000
17500

10
5
10
20
15
5
10
15
5
10
5
10

Demand (no. of hours)

12500
7000
12000
11250
5250
6000
10000
8750
10000
16250
7000
14000
8750
5250
6000
11250
8750
10000
12500
7000
10000
13750
5250
8000
7500
10500
16000
13750
3500
6000
15000
7000
8000
17500
8750
14000

type 4
60
30
50
70
30
50
50
40
80
30
40
70

8750
7000
5250
10500
3500
7000
8750

10000
10000
8000
16000
6000
8000
14000

of hours)

Total
Opening inProduction Closing (hours)
storage
backlog
3500
35000
0
33000
-2000
60000
1750
24250
-2000
33000
6750
50625
3500
32250
6750
33000
7500
106875
7000
44250
7500
33000
-3750
56250
112500
5250
25250
-3750
33000
4000
30000
1750
31750
4000
33000
5250
69375
3500
33000
5250
33000
5250
78750
5250
32250
5250
33000
6000
84375
1750
35750
6000
33000
3250
69375
3500
26750
3250
33000
9500
95625
1750
31750
9500
33000
10750
151875
3500
43750
10750
33000
0
80625

Average

33000
base

stive inventory and closing stock has backlog

pening stock/2 * inventory holding cost
losing stock *backlog cost
of hours)
3500
1750
3500
7000
5250
1750
3500
5250
1750
3500
1750
3500
Average

of hours)

Total
Opening inProduction Closing (hours)
storage
backlog
35000
0
32125
-2875
86250
24250
-2875
32125
5000
37500
32250
5000
32125
4875
74062.5
44250
4875
32125
-7250
36562.5
217500
25250
-7250
32125
-375
0
11250
31750
-375
32125
0
0
0
33000
0
33875
875
6562.5
32250
875
33875
2500
25312.5
35750
2500
33875
625
23437.5
26750
625
33875
7750
62812.5
31750
7750
33875
9875
132187.5
43750
9875
33875
0
74062.5
32125 1st six months
33875 next six months

Total
Production OverdemanUnderdemand
OD cost
UT cost
3500
35000
31000
4000
80000
0
1750
24250
31000
0
6750
0
67500
3500
32250
31000
1250
25000
0
7000
44250
31000
13250
265000
0
5250
25250
31000
0
5750
0
57500

1750
3500
5250
1750
3500
1750
3500

of hours)

31750
33000
32250
35750
26750
31750
43750

31000
31000
31000
31000
31000
31000
31000

750
2000
1250
4750
0
750
12750

Total
Production (hours)
3500
35000
31000
1750
24250
31000 l
3500
32250
31000
7000
44250
31000
5250
25250
31000 l
1750
31750
31000
3500
33000
31000
5250
32250
31000
1750
35750
31000
3500
26750
31000 l
1750
31750
31000
3500
43750
31000

4250

opening stock

15000
40000
25000
95000
0
15000
255000

0
0
0
0
42500
0
0

production closing stock

0
31000
0
0
31000
6750
6750
31000
5500
5500
31000
0
0
31000
5750
5750
31000
5000
5000
31000
3000
3000
31000
1750
1750
31000
0
0
31000
4250
4250
31000
3500
3500
31000
0

Total
60000
50625
106875
168750
30000
69375
78750
84375
69375
95625
151875
80625
1046250

Total
86250
37500
74062.5
254062.5
11250
0
6562.5
25312.5
23437.5
62812.5
132187.5
74062.5
787500
0.752688172
Total
80000
67500
25000
265000
57500

15000
40000
25000
95000
42500
15000
255000
982500

subcontracting
inventory csubcontracting cost
4000
0
100000
100000
0
50625
0
50625
0
91875
0
91875
7750
41250
193750
235000
0
43125
0
43125
0
80625
0
80625
0
60000
0
60000
0
35625
0
35625
3000
13125
75000
88125
0
31875
0
31875
0
58125
0
58125
9250
26250
231250
257500
1132500