Question

Capacity data
Beginning workforce 210 employees	210 employees
Beginning inventory 400 units	400 units
Labor standard per unit 6 hours	6 hours
Regular time available per period 160 hours	160 hours
Overtime available per period 32 hours	32 hours
Subcontracting maximum per period 1000 units	1000 units
Subcontracting minimum per period 500 units	500 units
Demand data
Period 1	6000 units
Period 2	4800 units
Period 3	7840 units
Period 4	5200 units
Period 5	6500 units
Period 6	3600 units

Given this information,

i. the number of workers needed in period 3

ii. the number of workers needed in period 6

iii. the number of workers that will be hired within the entire 6 period is

iv. the total number of firing that will be carried out within the entire 6 period is

v. the total number of hiring that will be carried out within the entire 6 period is

vi. the total number of extra workers that will be hired during period 4 is

vii. the total cost of the production plan is

Answer 1

	Opening inventory A	Demand B	No.. Of units to be produced (B-A) - C	Sub contract D	Balance Units (C-D)-E	Standard rate per unit F	No. of hrs required (ExF) -G	No. of workers needed G/192 - H
	400
Period 1		6000	5600		5600	6	33600	175.00
Period 2		4800	4800		4800	6	28800	150.00
Period 3		7840	7840	1000	6840	6	41040	213.75
Period 4		5200	5200		5200	6	31200	162.50
Period 5		6500	6500		6500	6	39000	203.13
Period 6		3600	3600		3600	6	21600	112.50

Assumed that all the workers will do OT.

(i)

No. of Wokers needed in period-3 = 214 ( after giving 1000 units for subcontract)

(ii)

No. of Workers needed in period 6 = 113

(iii)

Total No. of workers that will be hired during the entire period is "0".

(iv)

Total Number of firing that will be carried out within period 6 = Workers Available - No. of Workers needed

= 210 - 113

= 97