Opening Stock 1000 Plant Closing Stock 500 Jan Feb Mar Apr May Jun Decision variables DEMAND 1600 3000 3200 3800 2200 2200 1 Regular production qty 2600 2600 2600 2560 2560 2560 2 Overtime production qty 0 0 0 20 0 0 3 Sub-contract qty 0 0 0 0 0 0 4 Total produced 2600 2600 2600 2580 2560 2560 5 How many hired 0 0 0 0 0 0 6 How many fired 15 0 0 1 0 0 7 How many employees you got 65 65 65 64 64 64 8 Inventory 2000 1600 1000 -220 140 500 9 Inventory carry forward 2000 1600 1000 0 140 500 10 Inventory Backlog 0 0 0 220 0 0 Difference 2000 1600 1000 -220 140 500 Constraints 1 Regular production capacity 2600 2600 2600 2560 2560 2560 2 Overtime production capacity 162.5 162.5 162.5 160 160 160
Decision Variables Total cost excluding material
Constraints Material Cost 10 Total Cost Inventory Holding Cost 2 per unit per month 16000 Backlog or % of canceled order 5 per unit per month 15480 Hiring Cost 300 per person 20 480 Firing Cost 500 per person 0 0 Labour Hours Required per unit 4 per unit 15500 Regular time cost 4 per Hr 0 0 Overtime cost 6 per Hr 16 8000 Subcontracting cost per unit 30 It is not given whether the 30 is 387 247680 with material or without mat Regular time cost 16 5240 10480 OT pdn cost 24 220 1100 Mat+Regular pdt cost 26 Material + OT cost 34
Number of working days in month 20
Number of hours working per day 8 Max overtime in a month 10 excluding material 267740 her the 30 is Employee at june end 300 Opening Inventory 50000 Ending inventory 50000 July August SeptemberOctober NovemberDecemberTotal Demand 100000 110000 130000 180000 250000 300000 1070000 Regular 50000 110000 186880 186880 186880 186880 907520 OT 0 0 0 0 0 46720 46720 Sub-cont 0 0 0 0 0 115760 115760 total pdt 50000 110000 186880 186880 186880 349360 1070000 Hired 0 0 0 0 0 0 0 Fired 8 0 0 0 0 0 8 employee 292 292 292 292 292 292 1752 Inventory 0 0 56880 63760 640 50000 171280 Inv carry 0 0 56880 63760 640 50000 171280 Inv backlog 0 0 0 0 0 0 0 resting inv 0 0 56880 63760 640 50000
Reg cap 186880 186880 186880 186880 186880 186880
OT cap 46720 46720 46720 46720 46720 46720
160 Total Cost
640 186880 Assumption - Sub contracting cost is including material as regular pdtn cost is 3.75 Cost OT cost is 5.625 so SC cost is with material Material Cost 12 per unit 11450880 Inv Holding cost 2 per unit/month 262800 Stockout cost 10 per unit/month 2083680 Hiring cost 3000 Layoff cost 5000 0 Labour hour req 0.25 per unit 40000 Regular time cost 15 per hour 4204800 OT cost 22.5 per hour Sub-contracting cost 18 per unit 342560 0 Regular time cost 3.75 15.75 Including material cost OT cost 5.625 17.625 Including material cost
No of working days 20 per month
Regular hours 8 per day OT 40 per month 18384720 640 160