161 220-161=59 32 3 220 Min(220,161) =161 Min(59,32)=32 59-32=27 161 200-161=39 32 4 200 Min(200,161) =161 Min(39,32)=32 39-32=7 643 83 34 Cost summary 31 workers x 4 quarters x $7800 = Regular wages 967,200 83 units x $2000 O.T. cost = 166,000 34 units x $2500 = S.C. cost 85,000 (31 30) x $350 = Hiring cost 350 – Firing cost - Carrying cost - Total cost $1,218,550 6. Production rate/worker/day = 8 hours per day/2 hours per unit = 4 per worker/day Wage rate per worker per day = $8.50/hour x 8 hours/day = $68 OT cost/unit = 2 hours/unit x $10/hour = $20/unit d. Chase plan: Month Demand Production Days Production rate Hire Fire 50 Jan 1000 960 20 960/20 = 48 0 2 Feb 800 800 18 800/18 = 44 0 4 March 1100 1100 22 1100/22 = 50 6 0 April 1200 1200 20 1200/20 = 60 10 0 May 1300 1300 22 1300/22 = 59 0 1 16 7 Workers Production rate Workers (Rounded) Wages 50 48 48/4 = 12 12 $16,320 44 44/4 = 11 11 $13,464 50 50/4 = 12.5 13 $19,448 60 60/4 = 15 15 $20,400 59 59/4 = 14.75 15 $22,440 $92,072 Cost summary Regular wages $92,072 OT cost Subcontracting Hiring cost $3,200.00 Firing cost $2,800.00 Carrying cost $500.00 Total cost $98,572
3 220 161 Min(220,161) =161 220-161=59 32 Min(59,32)=32 59-32=27 4 200 161 Min(200,161) =161 200-161=39 32 Min(39,32)=32 39-32=7 643 83 34 Cost summary Regular wages 31 workers x 4 quarters x $7800 = 967,200 O.T. cost = 83 units x $2000 166,000 S.C. cost 34 units x $2500 = 85,000 Hiring cost (31 – 30) x $350 = 350 Firing cost - Carrying cost - Total cost $1,218,550 6. Production rate/worker/day = 8 hours per day/2 hours per unit = 4 per worker/day Wage rate per worker per day = $8.50/hour x 8 hours/day = $68 OT cost/unit = 2 hours/unit x $10/hour = $20/unit d. Chase plan: Month Demand Production Days Production rate Hire Fire 50 Jan 1000 960 20 960/20 = 48 0 2 Feb 800 800 18 800/18 = 44 0 4 March 1100 1100 22 1100/22 = 50 6 0 April 1200 1200 20 1200/20 = 60 10 0 May 1300 1300 22 1300/22 = 59 0 1 16 7 Production rate Workers Workers (Rounded) Wages 50 48 48/4 = 12 12 $16,320 44 44/4 = 11 11 $13,464 50 50/4 = 12.5 13 $19,448 60 60/4 = 15 15 $20,400 59 59/4 = 14.75 15 $22,440 $92,072 Cost summary Regular wages $92,072 OT cost Subcontracting Hiring cost $3,200.00 Firing cost $2,800.00 Carrying cost $500.00 Total cost $98,572
Fa12-3110-StudyGuide-e3.docx