e ul UBllar and all answers about people to the nearest integer. (A) You are run
ID: 1130961 • Letter: E
Question
e ul UBllar and all answers about people to the nearest integer. (A) You are running a production operation per the 6-month aggregate plan in the table below. You have decided to employ 6 full-time workers working 40 hours per week and with overtime as needed to produce per the 6-month average demand per day Any additional production over the monthly demand is put into inventory. You inventory when production starts in January. months? What is the production cost for the six Answer box: Inventory Holding Cost Regular Time Hours per Day Regular Time labor = Over Time labor = Labor hours to produce a unit Number full-time workers employed = $8 $14 2.0 per unit per month per hour hours per unit $21.00 per hourExplanation / Answer
Since monthly demand is not mentioned in the question it is assumed that there is no monthly demand and entire production is put into inventory.It is also assumed that each month has 4 complete weeks .
each labour do 40 hour work in a weak
so total labou hour in month =40 * numebr of labours employed*number of weeks in a month=40*6*4=960
total production in a month = total labour hour in a month/labour hour to produce a unit .
total production in a month =960/2=480
total labour cost of 6 labour of a month =40*6*14=$3360
total labour cost of 6 month =$20160
inventory cost of 1st month=8*480=$3840
inventory cost of 2nd month=8*total production till the end of second month=8*480+8*480=7680(as no demand is mentioned in question ,so the the first month production is kept in inventory because it is not consumed and subsquent production of second ,third ,fourth, fifth, and sixth month production will be kept in a inventory because demand is assumed 0)
inventory cost of third month =8*total production till the end of third month=8*480+8*480+8*480=$11520
inventory cost of fourth month =8*total production till the end of fourth month=8*480+8*480+8*480+8*480=15360
inventory cost of fifth month =8*total production till the end of fifth month=8*480+8*480+8*480+8*480+8*480=19200
inventory cost of sxth month =8*total production till the end of fifth month=8*480+8*480+8*480+8*480+8*480+8*480=$23040
total inventory cost=$80640
total production cost =total inventory cost +total labour cost=80640+20160=$100800
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