hr_om11_ism_ch13

# Personnel inventory hours required production unit

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Unformatted text preview: n (Regular) Production (Overtime) 320 320 110 320 230 320 380 320 480 320 380        Total 1,580 Ending Inv. Inventory Holding Cost @ \$8/unit/month 150  70 1,580 × (\$72 – \$48) = \$37,920 = Extra total (OT) cost + \$560 holding cost = \$38,480     ↑   ↑        Units made on \$72 = 4 hr overtime (OT) each × \$18 \$48 = 4 hr each × \$12 560 \$560 194 CHAPTER 13 A G G R E G A T E P L A N N I N G 13.8 Calculating added costs for various planning options to complement Problem 13.7: ■ Holding: \$8/unit/ month Subcontracting: \$80/unit ■ Overtime: \$24/unit (\$18/hour over 8 hours: \$72 – \$48 = \$24) ■ Hiring: \$1/unit ■ Layoff: \$2/unit Your strategy is one that involves hiring 5 workers in August and 5 more in October, as follows: ■ Beg. Personnel Inventory Hours Required Production Unit Over Units Required at 20 days Personnel Units Over Hire Layoff Period Demand (or Short) Required at 4 Each at 8 hrs on Staff Produced (or Short) \$40 \$80 Jun Jul Aug 400 500 150 150  70 250 430 1,000 1,720  8....
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## This document was uploaded on 01/24/2014.

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