Level production Quarter 1 2 3 4

Starting inventory 0 22500 15000 57500

Demand forecast 70000 100000 50000 150000
Production requirement 70000 77500 35000 92500
Regular production 92500 92500 92500 92500
Workers needed 40 74 74 74 74
Workers hired 34 0 0 0
Workers laid off 0 0 0 0
Ending inventory 22500 15000 57500 0
Labor cost 925000 925000 925000 925000
Holding cost 22500 15000 57500 0
Hiring cost 17000 0 0 0
Firing cost 0 0 0 0

Total labor cost 3700000

Total inventory cost 95000
Total hiring cost 17000
Total firing cost 0
Total cost 3812000

Chase demand Quarter 1 2 3 4

Starting inventory 0 0 0 0
Demand forecast 70000 100000 50000 150000
Production requirement 70000 100000 50000 150000
Regular production 70000 100000 50000 150000
Workers needed 40 56 80 40 120
Workers hired 16 24 0 80
Workers laid off 0 0 40 0
Ending inventory 0 0 0 0
Labor cost 700000 1000000 500000 1500000
Holding cost 0 0 0 0
Hiring cost 8000 12000 0 40000
Firing cost 0 0 20000 0

Total labor cost 3700000

Total inventory cost 0
Total hiring cost 60000
Total firing cost 20000
Total cost 3780000

c/ Quarter 1 2 3 4
Starting inventory 0 0 0 50000
Demand forecast 70000 100000 50000 150000
Production requirement 70000 100000 50000 100000
Regular production 70000 100000 100000 100000
Workers needed 40 56 80 80 80
Workers hired 16 24 0 0
 Workers laid off 0 0 0 0
Ending inventory 0 0 50000 0
Labor cost 700000 1000000 1000000 1000000
Holding cost 0 0 50000 0
Hiring cost 8000 12000 0 0
Firing cost 0 0 0 0

Total labor cost 3700000

Total inventory cost 50000
Total hiring cost 20000
Total firing cost 0
Total cost 3770000

d/ Quarter 1 2 3 4
Starting inventory 0 20000 10000 50000
Demand forecast 70000 100000 50000 150000
Production requirement 70000 80000 40000 100000
Regular production 90000 90000 90000 100000
Workers needed 40 72 72 72 80
Workers hired 32 0 0 8
Workers laid off 0 0 0 0
Ending inventory 20000 10000 50000 0
Labor cost 900000 900000 900000 1000000
Holding cost 20000 10000 50000 0
Hiring cost 16000 0 0 4000
Firing cost 0 0 0 0

Total labor cost 3700000

Total inventory cost 80000
Total hiring cost 20000
Total firing cost 0
Total cost 3800000

roduce 70000 units in period 1, and 100000 units in period 2 through 4

Work-hours 40 h/week
Beginning workforce 40
Production per employer 1250 units/quarter
Hiring cost 500 /worker
Laid off cost 500 /worker
Carrying cost 1 $/units/quarter
Regular production cost 10 $/units
NO OVERTIME AND SUBCONTRACT
Beginning workforce 10 workers
Production rate 200 pallet/worker/month
Overtime capacity = regular production'
Subcontract capacity = unlimited'
Hiring cost 5000
Firing cost 8000
Holding cost 2 per pallet
Regular production cost 30 per pallet
Overtime production cost 40 per pallet
Subcontract production cost 50 per pallet

Regular production =10*200' 2000

Overtime capacity = regular production' 2000
Subcontract capacity = unlimited'
Level production Month 3 4 5 6 7 8 9
Starting inventory 0 1000 3000 5000 7000 9000 10500
Demand forecast 2000 1000 1000 1000 1000 1500 2500
Production requirement 2000 0 0 0 0 0 0
Regular production 3000 3000 3000 3000 3000 3000 3000
Workers needed 10 15 15 15 15 15 15 15
Workers hired 5 0 0 0 0 0 0
Workers laid off 0 0 0 0 0 0 0
Ending inventory 1000 3000 5000 7000 9000 10500 11000
Labor cost 90000 90000 90000 90000 90000 90000 90000
Holding cost 2000 6000 10000 14000 18000 21000 22000
Hiring cost 25000 0 0 0 0 0 0
Firing cost 0 0 0 0 0 0 0

Total labor cost 1080000

Total inventory cost 127000
Total hiring cost 25000
Total firing cost 0
Total cost 1232000

B/ Month 3 4 5 6 7 8 9
Starting inventory 0 0 0 0 0 0 0
Demand forecast 2000 1000 1000 1000 1000 1500 2500
Production requirement 2000 1000 1000 1000 1000 1500 2500
Regular production 2000 1000 1000 1000 1000 1500 2500
Workers needed 10 10 5 5 5 5 8 13
Workers hired 0 0 0 0 0 3 5
Workers laid off 0 5 0 0 0 0 0
Ending inventory 0 0 0 0 0 0 0
Labor cost 60000 30000 30000 30000 30000 45000 75000
Holding cost 0 0 0 0 0 0 0
Hiring cost 0 0 0 0 0 15000 25000
Firing cost 0 40000 0 0 0 0 0

Total labor cost 1080000

Total inventory cost 0
Total hiring cost 200000
Total firing cost 280000
Total cost 1560000

C/ Month 3 4 5 6 7 8 9
Starting inventory 0 0 1000 2000 3000 4000 4500
Demand forecast 2000 1000 1000 1000 1000 1500 2500
Production requirement 2000 1000 0 0 0 0 0
Regular capacity 2000 2000 2000 2000 2000 2000 2000
Overtime
Subcontract
Ending inventory 0 1000 2000 3000 4000 4500 4000
Labor cost 60000 60000 60000 60000 60000 60000 60000
Holding cost 0 2000 4000 6000 8000 9000 8000
Overtime cost 0 0 0 0 0 0 0
Subcontract cost 0 0 0 0 0 0 0

Total labor cost 720000

Total inventory cost 43000
Total overtime cost 280000
Total subcontract cost 250000
Total cost 1293000

The company should choose level production

 10 11 12 1 2
11000 11000 5000 1000 0
3000 9000 7000 4000 3000
0 0 2000 3000 3000
3000 3000 3000 3000 3000
15 15 15 15 15
0 0 0 0 0
0 0 0 0 0
11000 5000 1000 0 0
90000 90000 90000 90000 90000
22000 10000 2000 0 0
0 0 0 0 0
0 0 0 0 0

10 11 12 1 2
0 0 0 0 0
3000 9000 7000 4000 3000
3000 9000 7000 4000 3000
3000 9000 7000 4000 3000
15 45 35 20 15
2 30 0 0 0
0 0 10 15 5
0 0 0 0 0
90000 270000 210000 120000 90000
0 0 0 0 0
10000 150000 0 0 0
0 0 80000 120000 40000

10 11 12 1 2
4000 3000 0 0 0
3000 9000 7000 4000 3000
0 6000 7000 4000 3000
2000 2000 2000 2000 2000
2000 2000 2000 1000
2000 3000 0 0
 3000 0 0 0 0
60000 60000 60000 60000 60000
6000 0 0 0 0
0 80000 80000 80000 40000
0 100000 150000 0 0
Regular time 2 $/skateboard Back orders Period
Overtime 3 $/skateboard Forecast
Subcontract 6 $/skateboard Production rate
Inventory 1 $/skateboard/period Beginning inventory
Back orders 5 $/skateboard/period Ending inventory
Initial workforce 15 workers Back orders
Production per worker 20 units/worker/period Labor cost
Inventory cost
Back orders cost
Total cost 4700
 1 2 3 4 5 6
200 200 300 400 500 200
300 300 300 300 300 300
0 100 200 200 100 0
100 200 200 100 0 0
0 0 0 0 100 0
600 600 600 600 600 600
100 200 200 100 0 0
0 0 0 0 500 0
Beginning workforce 150 workers
Working days 20 days/month
Working hours 5 h/day
Beginning inventory 5000 units
Production rate 1250 units/worker/month
Hiring cost 200 /workers
Firing cost 300 /workers
Inventory carrying cost 2 per unit per month
Regular production cost 6 per hour
Overtime production cost 10 per unit
Subcontract production cost 3 per unit

Beginning workforce 150 workers

Working days 20 days/month
Working hours 5 h/day
Beginning inventory 5000 units
Production rate 1250 units/worker/month
Hiring cost 200 /workers
Firing cost 300 /workers
Inventory carrying cost 2 per unit per month
Regular production cost 6 per hour
Overtime production cost 10 per unit
Subcontract production cost 3 per unit
Beginning workforce 150 workers
Working days 20 days/month
Working hours 5 h/day
Beginning inventory 5000 units
Production rate 1250 units/worker/month
Hiring cost 200 /workers
Firing cost 300 /workers
Inventory carrying cost 2 per unit per month
Regular production cost 6 per hour
Overtime production cost 10 per unit
Subcontract production cost 3 per unit
Chase production Month 1 2 3 4 5
Starting inventory 5000 5000 5000 5000 5000
Demand forecast 70000 100000 50000 150000 250000
Production requirement 65000 95000 45000 145000 245000
Hours needed 5600 8000 4000 12000 20000
Hrs/mo/worker 100 100 100 100 100
Regular production 70000 100000 50000 150000 250000
Workers needed 150 56 80 40 120 200
Workers hired 0 24 0 80 80
Workers laid off 94 0 40 0 0
Ending inventory 5000 5000 5000 5000 5000
Regular production cost 33600 48000 24000 72000 120000
Holding cost 10000 10000 10000 10000 10000
Hiring cost 0 4800 0 16000 16000
Firing cost 28200 0 12000 0 0

Total regular production cost 345600

Total inventory cost 60000
Total hiring cost 36800
Total firing cost 76200
Total cost 518600

Overtime Month 1 2 3 4 5
Starting inventory 5000 55000 75000 145000 115000
Demand forecast 70000 100000 50000 150000 250000
Production requirement 65000 45000 0 5000 135000
Hours needed 9600 9600 9600 9600 9600
Hrs/mo/worker 100 100 100 100 100
Regular production 120000 120000 120000 120000 120000
Overtime 0 0 0 0 15000
Workers needed 150 96 96 96 96 96
Workers hired 0 0 0 0 0
Workers laid off 54 0 0 0 0
Ending inventory 55000 75000 145000 115000 0
Regular production cost 57600 57600 57600 57600 57600
Overtime cost 0 0 0 0 150000
Holding cost 110000 150000 290000 230000 0
Hiring cost 0 0 0 0 0
Firing cost 16200 0 0 0 0

Total regular production cost 345600

Total inventory cost 820000
Total hiring cost 0
Total firing cost 16200
Total overtime cost 150000
Total cost 1331800

Subcontract Month 1 2 3 4 5
Starting inventory 5000 55000 75000 145000 115000
Demand forecast 70000 100000 50000 150000 250000
Production requirement 65000 45000 0 5000 135000
Hours needed 9600 9600 9600 9600 9600
Hrs/mo/worker 100 100 100 100 100
Regular production 120000 120000 120000 120000 120000
Subcontract 0 0 0 0 15000
Workers needed 150 96 96 96 96 96
Workers hired 0 0 0 0 0
Workers laid off 54 0 0 0 0
Ending inventory 55000 75000 145000 115000 0
Regular production cost 57600 57600 57600 57600 57600
Subcontract cost 0 0 0 0 45000
Holding cost 110000 150000 290000 230000 0
Hiring cost 0 0 0 0 0
Firing cost 16200 0 0 0 0

Total regular production cost 345600

Total inventory cost 820000
Total hiring cost 0
Total firing cost 16200
Total subcontract cost 45000
Total cost 1226800
 6
5000
100000
95000
8000
100
100000
80
0
120
5000
48000
10000
0
36000

6
0
100000
100000
9600
100
120000
0
96
0
0
20000
57600
0
40000
0
0
 6
0
100000
100000
9600
100
120000
0
96
0
0
20000
57600
0
40000
0
0
Beginning workforce 100 workers
Working days 22 days/month
Working hours 8 h/day
Beginning inventory 1000 units
Production rate 1250 units/worker/month
Hiring cost 300 /workers
Firing cost 300 /workers
Inventory carrying cost 2 per unit per month
Regular production cost 5 per hour
Overtime production cost 10 per unit
Subcontract production cost 3 per unit
Back oder cost 2 per unit

Beginning workforce 100 workers

Working days 22 days/month
Working hours 8 h/day
Beginning inventory 1000 units
Production rate 1250 units/worker/month
Hiring cost 300 /workers
Firing cost 300 /workers
Inventory carrying cost 2 per unit per month
Regular production cost 5 per hour
Overtime production cost 10 per unit
Subcontract production cost 3 per unit
Beginning workforce 100 workers
Working days 22 days/month
Working hours 8 h/day
Beginning inventory 1000 units
Production rate 1250 units/worker/month
Hiring cost 300 /workers
Firing cost 300 /workers
Inventory carrying cost 2 per unit per month
Regular production cost 5 per hour
Overtime production cost 10 per unit
Subcontract production cost 3 per unit

Beginning workforce 100 workers

Working days 22 days/month
Working hours 8 h/day
Beginning inventory 1000 units
Production rate 1250 units/worker/month
Hiring cost 300 /workers
Firing cost 300 /workers
Inventory carrying cost 2 per unit per month
Regular production cost 5 per hour
Overtime production cost 10 per unit
Subcontract production cost 3 per unit
Level production Month 1 2 3 4 5
Starting inventory 1000 21000 71000 41000 111000
Demand forecast 100000 70000 150000 50000 250000
Production requirement 99000 49000 79000 9000 139000
Hours needed 16896 16896 16896 16896 16896
Hrs/mo/worker 176 176 176 176 176
Regular production 120000 120000 120000 120000 120000
Workers needed 100 96 96 96 96 96
Workers hired 0 0 0 0 0
Workers laid off 4 0 0 0 0
Ending inventory 21000 71000 41000 111000 -19000
Regular production cost 84480 84480 84480 84480 84480
Holding cost 42000 142000 82000 222000 0
Backorder cost 38000
Hiring cost 0 0 0 0 0
Firing cost 1200 0 0 0 0

Total regular production cost 506880

Total inventory cost 490000
Total backorder cost 38000
Total hiring cost 0
Total firing cost 1200
Total cost 1036080

Chase production Month 1 2 3 4 5

Starting inventory 1000 1000 1000 1000 1000
Demand forecast 100000 70000 150000 50000 250000
Production requirement 99000 69000 149000 49000 249000
Hours needed 14080 9856 21120 7040 35200
Hrs/mo/worker 176 176 176 176 176
Regular production 100000 70000 150000 50000 250000
Workers needed 100 80 56 120 40 200
Workers hired 0 0 64 0 160
Workers laid off 20 24 0 80 0
Ending inventory 1000 1000 1000 1000 1000
Regular production cost 70400 49280 105600 35200 176000
Holding cost 2000 2000 2000 2000 2000
Hiring cost 0 0 19200 0 48000
Firing cost 6000 7200 0 24000 0

Total regular production cost 506880

Total inventory cost 12000
Total hiring cost 67200
Total firing cost 73200
Total cost 659280
Overtime Month 1 2 3 4 5
Starting inventory 1000 21000 71000 41000 111000
Demand forecast 100000 70000 150000 50000 250000
Production requirement 99000 49000 79000 9000 139000
Hours needed 16896 16896 16896 16896 16896
Hrs/mo/worker 176 176 176 176 176
Regular production 120000 120000 120000 120000 120000
Overtime 0 0 0 0 19000
Workers needed 100 96 96 96 96 96
Workers hired 0 0 0 0 0
Workers laid off 4 0 0 0 0
Ending inventory 21000 71000 41000 111000 0
Regular production cost 84480 84480 84480 84480 84480
Overtime cost 0 0 0 0 190000
Holding cost 42000 142000 82000 222000 0
Hiring cost 0 0 0 0 0
Firing cost 1200 0 0 0 0

Total regular production cost 506880

Total inventory cost 528000
Total hiring cost 0
Total firing cost 1200
Total overtime cost 190000
Total cost 1226080

Subcontract Month 1 2 3 4 5
Starting inventory 1000 21000 71000 41000 111000
Demand forecast 100000 70000 150000 50000 250000
Production requirement 99000 49000 79000 9000 139000
Hours needed 16896 16896 16896 16896 16896
Hrs/mo/worker 176 176 176 176 176
Regular production 120000 120000 120000 120000 120000
Subcontract 0 0 0 0 19000
Workers needed 100 96 96 96 96 96
Workers hired 0 0 0 0 0
Workers laid off 4 0 0 0 0
Ending inventory 21000 71000 41000 111000 0
Regular production cost 84480 84480 84480 84480 84480
Subcontract cost 0 0 0 0 57000
Holding cost 42000 142000 82000 222000 0
Hiring cost 0 0 0 0 0
Firing cost 1200 0 0 0 0

Total regular production cost 506880

Total inventory cost 528000
Total hiring cost 0
Total firing cost 1200
Total subcontract cost 57000
Total cost 1093080
 6
-19000
100000
119000
16896
176
120000
96
0
0
1000
84480
2000

0
0

6
1000
100000
99000
14080
176
100000
80
0
120
1000
70400
2000
0
36000
 6
0
100000
100000
16896
176
120000
0
96
0
0
20000
84480
0
40000
0
0

6
0
100000
100000
16896
176
120000
0
96
0
0
20000
84480
0
40000
0
0