hr_om11_ism_ch13

20 1300 260 pland month jul aug sep oct nov dec

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Unformatted text preview: P L A N N I N G 195 Plan B: Vary workforce to match prior month’s demand. Plan B Period Demand Production Plan (Units) Hire (Units) @ $3,000/100 1,000 1,200 1,400 1,800 1,800 1,800 1,300 1,000 1,200 1,400 1,800 1,800 — — 200 200 400 — $24,000  Jul  Aug  Sep  Oct  Nov  Dec Inventory Shortage Layoffs (Units) (Units) @ (Units) @ @ $6,000/100 $25 EA $100 300 100 — — — — $10,000 300 $18,000 — — 200 200 — — $40,000 Total $92,000 (b) Plan B is best because of cost. But note that production is only 8,500 units, while demand was 9,000. ■ Hiring: $30/unit Plan C 13.10 (a) Period Demand  Jun  Jul  Aug  Sep  Oct  Nov  Dec Production (Units) Subcont. (Units) Ending Inv. 1,000 1,200 1,400 1,800 1,800 1,800 1,300 1,300 1,300 1,300 1,300 1,300 400 500 Extra Cost 300 600 $15,000 700  17,500 600  15,000 100   2,500   0  24,000   0  30,000   Total Extra Cost: $104,000 (b) Plan D: Maximum units in overtime = 0.20 × 1,300 = 260 Plan D Month  Jul  Aug  Sep  Oct  Nov  Dec Demand Reg....
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This document was uploaded on 01/24/2014.

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