BUAD306 Exercise4 - Kevin Shalley Buad306 Exercise 4 Month...

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Unformatted text preview: Kevin Shalley Buad306 Exercise 4 Month Demand Desired Production Days Capacity Ending Inventory June 1400 July 5,000 3,600 21 3,600 August 6,000 6,000 13 6,000 September 10,000 10,000 20 10,000 October 8,000 8,000 23 8,000 November 8,000 8,000 21 8,000 December 6,000 7,500 20 7,500 1,500 43,100 Costs Cost Per Hiring/Training $200 Occurrence Termination Cost $240 Occurrence Output 4 Unit/day/worker Inventory Carrying Cost $2 Unit/month Back Order Cost $6 Unit/month Workers $80 Day Workers Can only be hired in the beginning and end of the month. Shortage Units Current Workforce # Hired # Fired Ending Workforce Inventory Cost Shortage Cost 52 52 9 43 $0 $0 43 73 115 $0 $0 115 10 125 $0 $0 125 38 87 $0 $0 87 8 95 $0 $0 95 1 94 $3,000 $0 Total Cost $894,767 Hire Cost Fire Cost Employee Cost Total Cost $0 $2,194 $72,000 $74,194 $14,505 $0 $120,000 $134,505 $1,923 $0 $200,000 $201,923 $0 $9,130 $160,000 $169,130 $1,656 $0 $160,000 $161,656 $0 $357 $150,000 $153,357 Kevin Shalley Buad306 Exercise 4...
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BUAD306 Exercise4 - Kevin Shalley Buad306 Exercise 4 Month...

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