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Question 67/69
A firm completes its near level production, five-month demand plan for the next business planning cycle:
Month 1Month 2Month 3Month 4Month 5
Demand Forecast15,00020,00025,00025,00018,000
Production Plan (Regular Time)20,00020,00020,00020,00018,000
Production Plan (Overtime)5,000
Ending Inventory5,0005,000
Average Inventory2,5005,0002,500
Workforce PlanningStarting WorkforceMonth 1Month 2Month 3Month 4Month 5 Hires7 Layoffs2 Actual Workforce Size132020202018 Regular Time Hours Required2,0002,0002,0002,0001,800 Overtime Hours Required500 Costs Regular time cost per unit$15 Overtime cost per unitS25 Monthly inventory cost per unit$1 Cost of hire$1,500 Cost of layoffS400 What is the cost of this demand plan?
Month 1Month 2Month 3Month 4Month 5
Demand Forecast15,00020,00025,00025,00018,000
Production Plan (Regular Time)20,00020,00020,00020,00018,000
Production Plan (Overtime)5,000
Ending Inventory5,0005,000
Average Inventory2,5005,0002,500
Workforce PlanningStarting WorkforceMonth 1Month 2Month 3Month 4Month 5 Hires7 Layoffs2 Actual Workforce Size132020202018 Regular Time Hours Required2,0002,0002,0002,0001,800 Overtime Hours Required500 Costs Regular time cost per unit$15 Overtime cost per unitS25 Monthly inventory cost per unit$1 Cost of hire$1,500 Cost of layoffS400 What is the cost of this demand plan?
