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  • Level Strategy: Hire N Fire Strategy

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    Srinivasan Kumar
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    This document contains demand forecasts, production plans, workforce levels, and costs for a company across multiple months. It evaluates three production strategies: level strategy, hire and fire strategy, and a strategy that considers idle time and overtime. The hire and fire strategy has the lowest total cost of $12,16,800 compared to $12,20,600 for the level strategy and $16,42,500 for the idle time and overtime strategy.

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    This document contains demand forecasts, production plans, workforce levels, and costs for a company across multiple months. It evaluates three production strategies: level strategy, hire and fire strategy, and a strategy that considers idle time and overtime. The hire and fire strategy has the lowest total cost of $12,16,800 compared to $12,20,600 for the level strategy and $16,42,500 for the idle time and overtime strategy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    10 views8 pages

    Level Strategy: Hire N Fire Strategy

    Uploaded by

    Srinivasan Kumar
    This document contains demand forecasts, production plans, workforce levels, and costs for a company across multiple months. It evaluates three production strategies: level strategy, hire and fire strategy, and a strategy that considers idle time and overtime. The hire and fire strategy has the lowest total cost of $12,16,800 compared to $12,20,600 for the level strategy and $16,42,500 for the idle time and overtime strategy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 8

    Month Demand Forecast

    JAN 100

    FEB 150

    MAR 250

    APR 400

    Hiring cost: Rs.200 per worker hired Firing cost: Rs.100 per worker fired Regular pay: Rs.5000 per worker per month Overtime pay: 1.5 times regular pay Inventory carrying cost: Rs.10 per unit (based on end of month balances) Backorder cost: Rs.20 per unit (based on end of month shortage) Productivity: 10 units per worker per month (this has also been scaled down from Beginning workforce size: 20 workers (available at the beginning of January) Beginning inventory: 0 units (no inventory available at the beginning of January

    Level Strategy Month Demand Forecast Production / Month Beginning Work Force Salary Inventory Back order JAN 100 200 20 100000 100 0 FEB 150 200 20 100000 150 0 MAR 250 200 20 100000 100 0 APR 400 200 20 100000 0 -100

    Hire n Fire Strategy Month Demand Forecast Manpower Productivity JAN 100 20 200 FEB 150 10 100 MAR 250 15 150 APR 400 25 250

    Required man power Current Man power hire Fire Hire Cost Fire Cost

    10 10 0 10 0 1000

    15 15 5 0 1000 0

    25 25 10 0 2000 0

    40 40 15 0 3000 0

    Idle time & Over time

    Month Demand Forecast Manpower Productivity Beginning Work Force Salary Over time no of opr Over time cost

    JAN 100 20 200 20 100000

    FEB 150 20 200 20 100000

    MAR 250 20 200 20 100000 5 37500

    APR 400 20 200 20 100000 20 150000

    Level Strategy Hire n Fire Strategy Idle time & Over time

    1216800 1220600 1642500

    MAY 250

    JUN 50

    JUL 90

    AUG 160

    SEP 260

    OCT 390

    NOV 240

    DEC 60

    end of month balances) month shortage) has also been scaled down from what was originally expressed in thousands of units per month) at the beginning of January) ble at the beginning of January)

    MAY 250 200 20 100000 0 -150

    JUN 50 200 20 100000 0 0

    JUL 90 200 20 100000 110 0

    AUG 160 200 20 100000 150 0

    SEP 260 200 20 100000 90 0

    OCT 390 200 20 100000 0 -100

    NOV 240 200 20 100000 0 -140

    DEC 60 200 20 100000 0 0


    1200000 700 -490 2400

    MAY 250 40 400

    JUN 50 25 250

    JUL 90 5 50

    AUG 160 9 90

    SEP 260 16 160

    OCT 390 26 260

    NOV 240 39 390

    DEC 60 24 240

    25 25 0 15 0 1500

    5 5 0 20 0 2000

    9 9 4 0 800 0

    16 16 7 0 1400 0

    26 26 10 0 2000 0

    39 39 13 0 2600 0

    24 24 0 15 0 1500

    6 6 0 18 0 1800

    240

    12800 7800 20600

    MAY 250 20 200 20 100000 5 37500

    JUN 50 20 200 20 100000

    JUL 90 20 200 20 100000

    AUG 160 20 200 20 100000

    SEP 260 20 200 20 100000 6

    OCT 390 20 200 20 100000 19 142500

    NOV 240 20 200 20 100000 4 30000

    DEC 60 20 200 20 100000


    1200000

    45000

    442500
    1642500

    150 -90

    7000 9800 16800 1216800

    1200000

    1220600

    1642500

    Develop an aggregate plan using all the three pure strategies and select the best one.
    Month Demand Forecast JAN 80 FEB 140 MAR 280 APR 300 MAY 200

    The total annual demand from the above set of forecasts is 2040 units.

    Additional Data Hiring cost: Rs.150 per worker hired Firing cost: Rs.100 per worker fired Regular pay: Rs.4000 per worker per month Overtime pay: 1.25 times regular pay Inventory carrying cost: Rs.10 per unit (based on end of month balances) Backorder cost: Rs.20 per unit (based on end of month shortage) Productivity: 10 units per worker per month (this has also been scaled down from wh Beginning workforce size: 20 workers (available at the beginning of January) Beginning inventory: 0 units (no inventory available at the beginning of January)

    ategies and select the best one.


    JUN 50 JUL 90 AUG 50 SEP 200 OCT 350 NOV 230 DEC 70

    sts is 2040 units.

    of month balances) h shortage) also been scaled down from what was originally expressed in thousands of units per month) he beginning of January) at the beginning of January)

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