Vary workforce method Total Cost 170,360

Jun Jul Aug Sep Oct Nov Dec

Demand 400 500 550 700 800 700
Unit needed 250 470 540 680 800 700
Regular time 280 480 560 680 800 720
Overtime 0 0 0 0 0 0
Ending inventory 150 30 10 20 0 0 20
Unmet demand 0 0 0 0 0 0
Worker 6.25 11.75 13.50 17.00 20.00 17.50
Worker (rounded) 8 7.00 12.00 14.00 17.00 20.00 18.00

Hiring cost - 200 80 120 120 -

Layoff cost 80 - - - - 160
Regular time cost 13,440 23,040 26,880 32,640 38,400 34,560
Overtime cost - - - - - -
Inventory cost 240 80 160 - - 160
Total cost 13,760 23,320 27,120 32,760 38,520 34,880

Other information
Cost per unit Other data
Hiring cost 40 Labor hour/disk 4
Layoff cost 80 Workdays/month 20
Regular time cost 12 Disk produced/day 2
Overtime cost 18 Productivity per labor 40
Inventory cost 8
Vary overtime and fixed no. of workforce Total Cost 206,480
Jun Jul Aug Sep Oct Nov Dec
Demand 400 500 550 700 800 700
Unit needed 250 430 550 700 800 700
Regular time 320 320 320 320 320 320
Overtime 0 110 230 380 480 380
Ending inventory 150 70 0 0 0 0 0
Unmet demand 0 110 230 380 480 380

Worker 8 8 8 8 8 8 8

Hiring cost - - - - - -
Layoff cost - - - - - -
Regular time cost 15,360 15,360 15,360 15,360 15,360 15,360
Overtime cost - 7,920 16,560 27,360 34,560 27,360
Inventory cost 560 - - - - -
Total cost 15,920 23,280 31,920 42,720 49,920 42,720

Conclusion
We should use Vary workforce method
because it gives cheaper cost than
Vary overtime and fixed no. of workforce
with total cost of 170,360
 Demand from Unused
Supply from Period 1 Period 2 Period 3 Period 4 Period 5 capacity
unit cost unit cost unit cost unit cost unit cost unit cost
0 3 6 9 12 0
Beginning inventory
0 0 0 0 0 0
Regular time 100 103 106 109 112 0
150 0
Overtime 125 128 131 134 137
Period 1
20
Subcontract 135 138 141 144 147 0
0
Regular time 100 103 106 109 0
150 0
Overtime 125 128 131 134 0
Period 2
10 10 0
Subcontract 135 138 141 144 0
0
Regular time 100 103 106 0
130 20 0
Overtime 125 128 131 0
Period 3
10 10 0
Subcontract 135 138 141 0
0
Regular time 100 103 0
150 0
Overtime 125 128 0
Period 4
20 0
Subcontract 135 138 0
0
Regular time 100 0
150 0
Overtime 125 0
Period 5
20 0
Subcontract 135 0
40 60
Total Demand 150 160 130 200 230 80
Total Demand Given 150 160 130 200 210
Ending Inventory 0 0 0 0 20
Total capacity Total Cost

-
0

150

15,000.00
20

150

17,590.00
20

150

17,650.00
20

150

17,500.00
20

150

22,900.00
20

100
950 90,640.00
Vary workforce method Total Cost 386,582
Mar Apr May Jun Jul Aug Sep
Demand 470 630 790 550 640 420
Unit needed 350 628 778 528 624 404
Regular time 352 640 800 544 640 416
Overtime 0 0 0 0 0 0

Ending inventory 120 2 12 22 16 16 12

Unmet demand 0 0 0 0 0 0
Worker 10.94 19.63 24.31 16.50 19.50 12.63
Worker (rounded) 15 11.00 20.00 25.00 17.00 20.00 13.00

Hiring cost - 13,050 7,250 - 4,350 -

Layoff cost 6,800 - - 13,600 - 11,900
Regular time cost 33,792 61,440 76,800 52,224 61,440 39,936
Overtime cost - - - - - -

Carrying cost 100 600 1,100 800 800 600

Total cost 40,692 75,090 85,150 66,624 66,590 52,436

Other information
Cost per unit Other data
Hiring cost 1450 Labor hour/wardrobe 6
Layoff cost 1700 Workdays/month 24
Regular time cost 16 Disk produced/day 1.33
Overtime cost 24 Productivity per labor 32
Subcontract cost 190 Maximum overtime/day 3.2
Backorder cost 200 Max overtime prod./labor 12.8
Carrying cost 50
Vary overtime and fixed no. of workforce Total Cost 390,220
Mar Apr May Jun Jul Aug Sep
Demand 470 630 790 550 640 420
Unit needed 350 500 790 668 640 420
Regular time 480 480 480 480 480 480
Overtime 0 20 192 188 160 0
Backorder 0 0 118 0 0 0
Ending inventory 120 130 0 0 0 0 60
Unmet demand 0 20 310 188 160 0

Worker 15 15 15 15 15 15 15

Hiring cost - - - - - -
Layoff cost - - - - - -
Regular time cost 46,080 46,080 46,080 46,080 46,080 46,080
Overtime cost - 2,880 27,648 27,072 23,040 -
Backorder - - 23,600 - - -
Carrying cost 6,500 - - - - 3,000
Total cost 52,580 48,960 97,328 73,152 69,120 49,080

Conclusion
We should use Vary workforce method
because it gives cheaper cost than other method
with total cost of 386,582

Fill only the cell with yellow fill color

Subcontract Total Cost 392,380
Mar Apr May Jun Jul Aug Sep
Demand 470 630 790 550 640 420
Unit needed 350 500 790 550 640 420
Regular time 480 480 480 480 480 480
Subcontract 0 20 310 70 160 0

Ending inventory 120 130 0 0 0 0 60

Unmet demand 0 20 310 70 160 0
Worker 10.94 15.63 24.69 17.19 20.00 13.13
Worker (rounded) 15 15.00 15.00 15.00 15.00 15.00 15.00

Hiring cost - - - - - -
Layoff cost - - - - - -
Regular time cost 46,080 46,080 46,080 46,080 46,080 46,080
Subcontract cost - 3,800 58,900 13,300 30,400 -

Carrying cost 6,500 - - - - 3,000

Total cost 52,580 49,880 104,980 59,380 76,480 49,080
Average demand Total Cost 400,608
Mar Apr May Jun Jul Aug Sep
Demand 470 630 790 550 640 420
Unit needed 350 372 554 496 528 340
Regular time 608 608 608 608 608 608
Backorder 0 0 0 0 0 0

Ending inventory 120 258 236 54 112 80 268

Unmet demand 0 0 0 0 0 0
Worker 10.94 11.63 17.31 15.50 16.50 10.63
Worker (rounded) 19 19.00 19.00 19.00 19.00 19.00 19.00

Hiring cost - - - - - -
Layoff cost - - - - - -
Regular time cost 58,368 58,368 58,368 58,368 58,368 58,368
Backorder cost - - - - -

Carrying cost 12,900 11,800 2,700 5,600 4,000 13,400

Total cost 71,268 70,168 61,068 63,968 62,368 71,768