1 16281 16281 16281 16281 23085 23085 23085 23085

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Unformatted text preview: 00 2,025 2,025 2,025 2,025 2,025 2,025 2,025 2,025 2,025 2,025 2,025 2,025 1,425 2,050 2,875 3,900 4,425 4,450 3,975 3,500 2,525 1,550 1,075 1,000 $8,550 $12,300 $17,250 $23,400 $26,550 $26,700 $23,850 $21,000 $15,150 $9,300 $6,450 $6,000 24,300 24,300 32,750 $196,500 MIXED STRATEGY MIXED STRATEGY Months Emp. Prod. D Fin. Inv. Cost Inv Cost of Change in WF 1 2 3 4 5 6 7 8 9 10 11 12 201 201 201 201 201 285 285 285 285 285 285 285 1,628.1 1,628.1 1,628.1 1,628.1 1,628.1 2,308.5 2,308.5 2,308.5 2,308.5 2,308.5 2,308.5 2,308.5 1,600 1,400 1,200 1,000 1,500 2,000 2,500 2,500 3,000 3,000 2,500 2,100 1,028.1 1,256.2 1,684.3 2,312.4 2,440.5 2,749.0 2,557.5 2,366.0 1,674.5 983.0 791.5 1,000.0 $6,168.6 $7,537.2 $10,105.8 $13,874.4 $14,643.0 $16,494.0 $15,345.0 $14,196.0 $10,047.0 $5,898.0 $4,749.0 $6,000.0 $19,600 3,000 24,300 24,300 19,814.9 $125,058 $58,800 201 x 8.1 = 1628.1 285 x 8.1 = 2308.5 Fin. Inv. = 1628.1 + 1000 ­1600 = 1028.1 $25,200 $14,000 $19600 = 250 – 201 = 49 emp. x $400 $25200 = 285 – 201 = 84 emp. x $300 $14000 = 285 – 250 = 35 emp. x $400 SUMMARY OF COSTS SUMMARY OF COSTS Chase Strategy Level Strategy Mixed Strategy Inventory Cost $72,278.4 $196,500.0 $125,058.0 WF Change Cost $173,600.0 $58,800.0 $8,748,000.0 $8,748,000.0 $8,748,000.0 Labour Cost Total Cost $8,993,878.4 $8,944,500.0 $8,931,858.0 Costs of WF = 24300 x $18/hr x 20 hrs/unit = $8748000 EXAMPLE 3 : THREE PLANS EXAMPLE 3 : THREE PLANS Use th following data and answer the questions below: Quarter Demand 1 700 2 900 3 1200 4 600 THE COSTS Pevious Production 800 units Initial Inventory (BI) 0 units Back Logs (BL) $100 per unit Holding Cost (HC) $10 per unit at the end of the quarter Hiring (H) $20 per unit Firing (F) $40 per unit SubContracting...
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This document was uploaded on 02/10/2014.

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