Level Strategy

No overtime and no

subcontracting

Starting inventory $($January$)$

Ending inventory $($August$)$

Overtime limit

Inventory carrying cost

Subcontracting cost per unit

Average wage rate

Overtime wage rate

Labor hours to produce a

unit

Cost of increasing daily

production rate $($hiring and

training$)$

Cost of decreasing daily

production rate $($layoffs$)$

Average Requirement $=$

# Operators Required $=$

Inventory Carrying Cost $=$

Regular Labour Cost $=$

Overtime Labour Cost $=$

Subcontracting Cost $=$

Total Cost Option $A=$

Areas shade in yellow should be calculated values based on formt

$200$ units

$200$ units

$200$ units$/$month

$5\mathrm{.}00$ per unit$/$month

$20\mathrm{.}00$ per unit

$15\mathrm{.}00$ per hour $(\frac{5120}{?}$ day