Cost Data

Regular time labor cost per hour $$10\mathrm{.}00$ Level Aggregate Plan, Using Inventories and Backorders

Overtime labor cost per hour $$15\mathrm{.}00$

Subcontracting cost per unit $($labor only$)$ $$84\mathrm{.}00$ Compute Level Production Rate

Holding cost per unit period $$10\mathrm{.}00$ Total Demand $34000$

Back$-$order cost per unit period $$20\mathrm{.}00$ Less: Beginning Inventory

Hiring cost per employee $$600\mathrm{.}00$ Total Net Demand

Firing cost per employee $$450\mathrm{.}00$ Average Demand Per Period $<--$ Production Rate for Level Plan

Capacity Data Compute Workforce Needed

Beginning workforce $($employees$)280$ Units per Employee per Period

Beginning inventory $($units$)400$ Workers needed

Labor standard per unit $($hours$)8$ Number to Hire

Regular time available per period $($hours$)160$ Number to Fire

Overtime available per period $($hours$)32$

Subcontracting maximum per period $($units$)1000$ Detailed Plan Computations

Subcontracting minimum per period $($units$)500$ Period $1$ Period $2$ Period $3$ Period $4$ Period $5$ Period $6$ Totals

Demand Data $($units$)$ Demand $($units$)($net of beg. Inventory$)46004300784057006560460033600$

Period $15000$ Period production $($units$)0$

Period $24300$ Ending Inventory $($units$)0$

Period $37840$ Backorders $($units$)0$

Period $45700$

Period $56560$ Cost Calculations for Plan A

Period $64600$ Regular time labor cost

Total Number of Periods $6$ Inventory holding cost

Back order cost

Hiring cost

Firing cost

Total Cost $$0$