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Fall Winter Spring Summer: Production Hours Available+overtimehours

1) The document provides production planning information for four seasons - fall, winter, spring, and summer. It includes forecasts, beginning/ending inventory, production hours required/available, overtime hours, and workers hired/laid off. 2) In the summer season, 23,600 production hours are required but only 14,400 hours are available, resulting in 9,200 overtime hours. To complete production, 20 additional temporary workers need to be hired. 3) Cost information is provided for backorders, hiring/firing workers, inventory carrying costs, regular/overtime labor. The total cost across all seasons is $415,600.

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mimibarasa06
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31 views

Fall Winter Spring Summer: Production Hours Available+overtimehours

1) The document provides production planning information for four seasons - fall, winter, spring, and summer. It includes forecasts, beginning/ending inventory, production hours required/available, overtime hours, and workers hired/laid off. 2) In the summer season, 23,600 production hours are required but only 14,400 hours are available, resulting in 9,200 overtime hours. To complete production, 20 additional temporary workers need to be hired. 3) Cost information is provided for backorders, hiring/firing workers, inventory carrying costs, regular/overtime labor. The total cost across all seasons is $415,600.

Uploaded by

mimibarasa06
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Productivity is 0,5 unit/ hour = 1 unit/2 hours 2hr.

/ unit
Fall
Winter
Forecast
10.000 8.000
Beginning inventory (unit)
500
-2.300 (Beginning
inventory in winter
= ending inventory
in fall)
Production required (Forecast- Beginning 9.500
10.300
inventory)
Production hours required (Production
19.000 20.600
required x 2hr/unit)
Production hours available (30 workers x 14.400 14.400
60 days per season x 8 hours per day)
Overtime hours (production hours
6.200
required - production hours available)
Actual production (
7.200
10.300

Spring

Summer

7.000
0 (Beginning
inventory in winter
= ending inventory
in winter)
7.000

12.000
200(Beginning inventory in
winter = ending inventory in
spring)

14.000

23.600

14.400

14.400

9.200

7.200

11.800

11.800

Production hours available +Overtimehours


2 hr /unit
)
Ending inventory (Beginning inventory+
Actual production- Forecast)
Backorder (Forecast- Actual productionBeginning inventory)
Workers hired (

-2.300

200

2.300

23.60014.400
=19,17 20 workers
60 days x 8 hr

Production hours requiredProduction hours available


hours per 60 days per worker

(plan to hire temporary workers at


the beginning of summer)

)
Workers currently

30

30

30

Workers laid of

Backorder ($10/unit)
Hiring cost ($100/worker)
Firing cost ($200/worker)
Inventory ($5/unit-quarter)
Cost of labor for regular time
($5/hour)
Cost of labor for overtime
($8/hour)
Total

workers currently +workers


hired = 30 +20 = 50
20 (plan to hire temporary workers
at the beginning of summer lay the
workers off at the end of summer)

Fall
$23.000
$72.000

Winter
$72.000

Spring
$1.000
$72.000

Summer
$2.000
$4.000
$120.000

$49.600

$95.000

$121.600

$73.000

$126.000

Total

$415.60

Total staf
Working days per month
Working hours per day
Straight time rate
Overtime rate
Overtime
Carriying cost
Backorder cost

= 25 engineers
= 20 days
= 8 hours
= $30/hr
= $45
= 30% of straight time = 0,30
= $5 per hour per month
= $10 per hour per month

1. Working hours per month per worker


= working days x working hours
= 20 days x 8hr./day = 160 hours
2. The overtime hours available
= overtime x straight time hours available per month
= 0,30 x 4000 = 1.200 hours
Jan
Feb Mar Apr
Forecast work hours
5.00 4.00 6.00 6.00
0
0
0
0
Regular work hours available (hr./month) (total staf x working hours per
4.00 4.00 4.00 4.00
month per worker)
0
0
0
0
Overtime hours (hr./month) (Forecast work hours - Regular work hours
1.00 0
2.00 2.00
available)
0
0
0
Overtime hours available (hr./month) (overtime percentage x straight time
1.20 1.20 1.20 1.20
hours available per month)
0
0
0
0
Work hours required (Regular work hours available+ Overtime hours available) 5.20 5.20 5.20 5.20
0
0
0
0
Beginning inventory
0
200 1.40 600
0
Ending inventory (work hours required +beginning inventory-forecast work
200 1.40 600 0
hours)
0
Ending backorder
0
0
0
200

Straight
time
Overtime
Inventory
Backorder
Total

Jan
$120.000

Feb
$120.000

Mar
$120.000

Apr
$120.000

May
$120.000

$120.000

$54.000
$1.000
0
$175.000

$54.000
$7.000
0
$181.000

$54.000
$3.000
0
$177.000

$54.000
0
$2.000
$174.000

$54.000
$1.000
0
$175.000

0
$1.000
0
$121.000

May
5.00
0
4.00
0
1.00
0
1.20
0
5.20
0
0

Jun
4.000

200

200

Total
$1.003.0
00

4.000
0
0
4.000
200

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