Respuesta :
Answer & Explanation:
Productivity = Units /hour 0.1
1 unit = 10 hours 10
Working hours /day 8
Jan Feb March
Working days 22 19 21
Forecast 1010 1490 1240
Safety Stock = Half of the Forecast 505 745 620
Beg inventory = Ending inventory
for last month 550 for January 550 508 751
Net Production required = Forecast
+ Safety Stock - Beginning inventory 965 1727 1109
Workers required=(net production*10)/(working days *8), round the number up. 55 114 67
Hired 55-42 = 13 59 0
Laid off 0 0 47
Actual production = (Number of workers*Working days * 8) / 10
968 1733 1126
Ending inventory= Actual production + Beginning inventory - Demand forecast) 508 751 636
Costs Jan Feb Mar
Labor = Total Workers * Working days * 8 hours * $8
$77,440 $138,624 $90,048
Inventory= (Beginning inventory + Ending inventory) / 2 * $5
$2,645.00 $3,147.00 $3,468.00
Hiring = People hired * Hiring cost $3,380 $15,340 0
Layoff = People fired * Firing cost 0 0 $16,920
Total $83,465 $157,111 $110,436
Total cost $351,012
*The attached information below are for additional information and thorough perusal