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BUAD306 Exercise4 - Kevin Shalley Month June July August...

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Kevin Shalley Buad306 Exercise 4 Month Demand Desired Production Days Capacity Ending Inventory June 1400 July 5,000 3,600 21 3,600 0 August 6,000 6,000 13 6,000 0 September 10,000 10,000 20 10,000 0 October 8,000 8,000 23 8,000 0 November 8,000 8,000 21 8,000 0 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.
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Shortage Units Current Workforce # Hired # Fired Ending Workforce Inventory Cost Shortage Cost 52 0 52 0 9 43 $0 $0 0 43 73 0 115 $0 $0 0 115 10 0 125 $0 $0 0 125 0 38 87 $0 $0 0 87 8 0 95 $0 $0 0 95 0 1 94 $3,000 $0 Total Cost $894,767
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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
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Kevin Shalley Buad306 Exercise 4 Month Demand Desired Production Days Capacity Ending Inventory Shortage Units June 1400 July 5,000 7,183 21 7,183 3,583 0 August 6,000 7,183 13 7,183 4,767 0 September 10,000 7,183 20 7,183 1,950 0 October 8,000 7,183 23 7,183 1,133 0 November 8,000 7,183 21 7,183 317 0 December 6,000 7,183 20 7,183 1,500 0 Costs Cost Per Hiring/Training $200 Occurrence Termination Cost
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