Find total cost of the plan

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Reference no: EM13105473

Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stablemeans that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 80,080; March, 64,080; April, 100,080; May, 40,080. Productivity is five units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1. Costs are hiring, $45 per new worker; layoff, $65 per worker laid off; inventory holding, $9 per unit-month; straight-time labor, $10 per hour; overtime, $15 per hour; backorder, $18 per unit.

Find the total cost of this plan. (Negative values should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest whole number.)

	February	March	April	May
Forecast	80,080	64,080	100,080	40,080
Beginning inventory
Production required
Production hours required
Regular workforce
Regular production
Overtime hours
Overtime production
Total production
Ending inventory
Ending backorders
Workers hired
Workers laid off

	February	March	April	May
Straight time	$	$	$	$
Overtime
Inventory
Backorder
Hiring
Layoff

Total	$	$	$	$

Total cost				$

Reference no: EM13105473

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