January February March April May

Beginning Inventory (Inventory on hand) 550

Demand Forecast 2000 1000 1800 2200 1500
Number of Working Days by Month 25 20 24 24 25

Costs
Materials $200.00 $ per unit
Inventory holding cost $3.00 $ per unit per month
Marginal cost of stockout $5.00 $ per unit per month
Marginal cost of subcontracting $10.00 $ per unit
Hiring and training cost $100.00 $ per worker
Layoff cost $250.00 $ per worker
Labor hours required per unit 4.0 $ per unit
Straight-line cost (first eight hours each day) $6.00 $ per hour
Overtime cost (time and a half) $9.00 $ per hour

Aggregate Production Planning Requirements

January February March April May
Beginning Inventory 550 500 250 450 550
Demand Forecast 2,000 1,000 1,800 2,200 1,500
Safety Stock (.25 x Demand Forecast) 500 250 450 550 375
Production Requirement 1,950 750 2,000 2,300 1,325
Ending Inventory 500 250 450 550 375

Costs of Four Production Plans

Production Plan 1: Exact Production; Vary Workforce
January February March April May
Production Requirement 1,950 750 2,000 2,300 1,325
Production Hours Required 7,800 3,000 8,000 9,200 5,300
Working Days per Month 25 20 24 24 25
Hours per Month per Worker 200 160 192 192 200
Workers Required 39 19 42 48 27
New Workers Hired
Hiring Cost
Workers Laid Off
Layoff Cost (Workers Laid Off x $250)
Straight Time Cost
Total Cost

Production Plan 2: Constant Low Workforce; Subcontract

January February March April May
Production Requirement 1,950 750 2,000 2,300 1,325
Working Day per Month
Production Hours Available (Working Day x 8
Hrs./Day x jumlah Workers)*
Actual Production (Production Hours Available/4
hr.per Unit)
Units Subcontracted (Production Requirement -
Actual Production)
Subcontracting Cost (Units Subcontracted x
biaya subcontract)
Straight Time Cost
*Minimum production requirement. Total Cost

Comparison of Two Plans

Cost Plan 1 Plan 2
Hiring $0 $0
Layoff $0 $0
Excess inventory $0 $0
Shortage $0 $0
Subconstract $0 $0
Overtime $0 $0
Straight time $0 $0
$0 $0
 June Totals

1700 10200
23 141

June
375
1,700
425
1,750 10,075
425

June Total
1,750 10,075
7,000 40,300
23 141
184 1,128
39 36

$0

$0
$0
Total Cost $0

ct
June Total
1,750 10,075

$0
$0
Total Cost $0
 January February March April May
Beginning Inventory 550
Demand Forecast 2000 1000 1800 2200 1500
Number of Working Days by Month 25 20 24 24 25

Costs
Materials $200.00 $ per unit
Inventory holding cost $3.00 $ per unit per month
Marginal cost of stockout $5.00 $ per unit per month
Marginal cost of subcontracting $20.00 $ per unit
Hiring and training cost $100.00 $ per worker
Layoff cost $150.00 $ per worker
Labor hours required per unit 4.0 $ per unit
Straight-line cost (first eight hours each day) $6.00 $ per hour
Overtime cost (time and a half) $9.00 $ per hour

Aggregate Production Planning Requirements

January February March April May
Beginning Inventory 550 500 250 450 550
Demand Forecast 2000 1000 1800 2200 1500
Safety Stock (.25 x Demand Forecast) 500 250 450 550 375
Production Requirement 1,950 750 2,000 2,300 1,325
Ending Inventory 500 250 450 550 375

Costs of Four Production Plans

Production Plan 1: Exact Production; Vary Workforce
January February March April May
Production Requirement 1,950 750 2,000 2,300 1,325
Production Hours Required 7,800 3,000 8,000 9,200 5,300
Working Days per Month 25 20 24 24 25
Hours per Month per Worker 200 160 192 192 200
Workers Required 39 19 42 48 27
New Workers Hired 0 0 23 6 0
Hiring Cost $0 $0 $2,300 $600 $0
Workers Laid Off 0 20 0 0 21
Layoff Cost (Workers Laid Off x $250) $0 $5,000 $0 $0 $5,250
Straight Time Cost $46,800 $18,000 $48,000 $55,200 $31,800
Total Cost

Production Plan 2: Constant Low Workforce; Subcontract

January February March April May
Production Requirement 1,950 750 2,000 2,300 1,325
Working Day per Month 25 20 24 24 25
Production Hours Available (Working Day x 8
3,800 3,040 3,648 3,648 3,800
Hrs./Day x number of Workers)*
Actual Production (Production Hours Available/4
950 760 912 912 950
hr.per Unit)
Units Subcontracted (Production Requirement -
1,000 0 1,088 1,388 375
Actual Production)
Subcontracting Cost (Units Subcontracted x
$20,000 $0 $21,760 $27,760 $7,500
$20)
Straight Time Cost $22,800 $18,240 $21,888 $21,888 $22,800
 Total Cost

Comparison of Two Plans

Cost Plan 1 Plan 2
Hiring $4,100 $0
Layoff $10,250 $0
Excess inventory $0 $0
Shortage $0 $0
Subconstract $0 $94,540
Overtime $0 $0
Straight time $241,800 $128,592
$256,150 $223,132
 June Totals

1700 10200
23 141

June
375
1700 10200
425
1,750 10,075
425

June Total
1,750 10,075
7,000 40,300
23 141
184 1,128
39 minimum worker required = 19
12 41
$1,200 $4,100
0 41
$0 $10,250
$42,000 $241,800
Total Cost $256,191

ct
June Total
1,750 10,075
23 141
3,496 21,432
minimum worker required = 19
874 5,358

876 4,727

$17,520 $94,540
$20,976 $128,592
Total Cost $223,132
 January February March April May June Totals
Beginning Inventory 800
Demand Forecast 2000 1650 3000 1000 1200 1700 10550
Number of Working Days by Month 24 25 23 25 24 23 144

Costs
Materials $200.00 $ per unit
Inventory holding cost $2.50 $ per unit per month
Marginal cost of stockout $5.00 $ per unit per month
Marginal cost of subcontracting $20.00 $ per unit
Hiring and training cost $200.00 $ per worker
Layoff cost $250.00 $ per worker
Labor hours required per unit 5.0 $ per unit
Straight-line cost (first eight hours each day) $4.00 $ per hour
Overtime cost (time and a half) $6.00 $ per hour

Aggregate Production Planning Requirements

January February March April May June
Beginning Inventory
Demand Forecast
Safety Stock (.25 x Demand Forecast)
Production Requirement
Ending Inventory

Costs of Four Production Plans

Production Plan 1: Exact Production; Vary Workforce
January February March April May June Total
Production Requirement
Production Hours Required
Working Days per Month
Hours per Month per Worker
Workers Required
New Workers Hired
Hiring Cost
Workers Laid Off
Layoff Cost (Workers Laid Off x $250)
Straight Time Cost
Total Cost $0

Production Plan 2: Constant Workforce

January February March April May June Total
Beginning Inventory
Working Day per Month
Production Hours Available
Actual Production
Demand Forecast
Ending Inventory
Shortage Cost
Safety Stock
Inventory Cost
Straight Time Cost
Total Cost $0

Production Plan 3: Constant Low Workforce; Subcontract

January February March April May June Total
Production Requirement
Working Day per Month
Production Hours Available (Working Day x 8
Hrs./Day x number of Workers)*
Actual Production (Production Hours Available/4
hr.per Unit)
Units Subcontracted
Subcontracting Cost
Straight Time Cost
Total Cost $0

Production Plan 4: Constant Low Workforce; Overtime

January February March April May June Total
Beginning Inventory
Working Day per Month
Production Hours Available
Regular Shift Production
Demand Forecast
Units Available before Overtime
Units Overtime
Overtime Cost
Safety Stock
Inventory Cost
Straight Time Cost
Total Cost $0

Production Plans Comparation

Plan 1 Plan 2 Plan 3 Plan 4
Hiring $0 $0 $0 $0
Layoff $0 $0 $0 $0
Excess Inventory $0 $0 $0 $0
Shortage $0 $0 $0 $0
Subcontract $0 $0 $0 $0
Overtime $0 $0 $0 $0
Straight Time $0 $0 $0 $0
Total Cost $0 $0 $0 $0

Total Cost $0

Comparison of Two Plans

Cost Plan 1 Plan 2
Hiring $0 $0
Layoff $0 $0
Excess inventory $0 $0
Shortage $0 $0
Subconstract $0 #REF!
Overtime $0 $0
Straight time $0 $0
$0 #REF!
 January February March April May June Totals
Beginning Inventory 800
Demand Forecast 2000 1650 3000 1000 1200 1700 10550
Number of Working Days by Month 24 25 23 25 24 23 144

Costs
Materials $200.00 $ per unit
Inventory holding cost $2.50 $ per unit per month
Marginal cost of stockout $5.00 $ per unit per month
Marginal cost of subcontracting $20.00 $ per unit
Hiring and training cost $200.00 $ per worker
Layoff cost $250.00 $ per worker
Labor hours required per unit 5.0 $ per unit
Straight-line cost (first eight hours each day) $4.00 $ per hour
Overtime cost (time and a half) $6.00 $ per hour

Aggregate Production Planning Requirements

January February March April May June
Beginning Inventory 800 500 413 750 250 300 425
Demand Forecast 2,000 1,650 3,000 1,000 1,200 1,700 10,550
Safety Stock (.25 x Demand Forecast) 500 413 750 250 300 425
Production Requirement 1,700 1,563 3,338 500 1,250 1,825 10,175
Ending Inventory 500 413 750 250 300 425 50

Costs of Four Production Plans

Production Plan 1: Exact Production; Vary Workforce
January February March April May June Total
Production Requirement 1,700 1,563 3,338 500 1,250 1,825 10,175
Production Hours Required 8,500 7,813 16,688 2,500 6,250 9,125 50,875 worker required on average = 45
Working Days per Month 24 25 23 25 24 23 144
Hours per Month per Worker 192 200 184 200 192 184 1,152
Workers Required 45 40 91 13 33 50 minimum worker required = 13
New Workers Hired 0 0 51 0 20 17 71
Hiring Cost $0 $0 $10,200 $0 $4,000 $3,400 $17,600
Workers Laid Off 0 5 0 78 0 0 83
Layoff Cost (Workers Laid Off x $250) $0 $1,250 $0 $19,500 $0 $0 $20,750
Straight Time Cost $34,000 $31,250 $66,750 $10,000 $25,000 $36,500 $203,500
Total Cost $241,850

Production Plan 2: Constant Workforce

January February March April May June Total
Beginning Inventory 800 528 678 -666 134 662 618
Working Day per Month 24 25 23 25 24 23 144
Production Hours Available 8,640 9,000 8,280 9,000 8,640 8,280 51,840 worker required on average = 45
Actual Production 1,728 1,800 1,656 1,800 1,728 1,656 10,368
Demand Forecast 2,000 1,650 3,000 1,000 1,200 1,700 10,550
Ending Inventory 528 678 -666 134 662 618 436
Shortage Cost $0 $0 $3,330 $0 $0 $0 $3,330
Safety Stock 500 413 750 250 300 425
Inventory Cost $1,320 $1,695 $0 $335 $1,655 $1,545 $6,550
Straight Time Cost $34,560 $36,000 $33,120 $36,000 $34,560 $33,120 $207,360
Total Cost $217,240

Production Plan 3: Constant Low Workforce; Subcontract

January February March April May June Total
Production Requirement 1,700 1,563 3,338 500 1,250 1,825 10,175
Working Day per Month 24 25 23 25 24 23 144
Production Hours Available (Working Day x 8
2,496 2,600 2,392 2,600 2,496 2,392 14,976
Hrs./Day x number of Workers)* minimum worker required = 13
Actual Production (Production Hours Available/4
499 520 478 520 499 478 2,995
hr.per Unit)
Units Subcontracted 1,201 1,043 2,860 0 751 1,347 7,201
Subcontracting Cost $24,020 $20,850 $57,190 $0 $15,020 $26,940 $144,020
Straight Time Cost $9,984 $10,400 $9,568 $10,400 $9,984 $9,568 $59,904
Total Cost $203,924

Production Plan 4: Constant Low Workforce; Overtime

January February March April May June Total
Beginning Inventory 800 0 0 0 0 0 800
Working Day per Month 24 25 23 25 24 23 144
Production Hours Available 2,496 2,600 2,392 2,600 2,496 2,392 14,976 minimum worker required = 13
Regular Shift Production 499 520 478 520 499 478 2,995
Demand Forecast 2,000 1,650 3,000 1,000 1,200 1,700 10,550
Units Available before Overtime 1,299 520 478 520 499 478 3,795
Units Overtime 701 1,130 2,522 480 701 1,222 6,755
Overtime Cost $21,030 $33,900 $75,660 $14,400 $21,030 $36,660 $202,680
Safety Stock 500 413 750 250 300 425
Inventory Cost $0 $0 $0 $0 $0 $0 $0
Straight Time Cost $9,984 $10,400 $9,568 $10,400 $9,984 $9,568 $59,904
Total Cost $262,584

Production Plans Comparation

Plan 1 Plan 2 Plan 3 Plan 4
Hiring $17,600 $0 $0 $0
Layoff $20,750 $0 $0 $0
Excess Inventory $0 $6,550 $0 $0
Shortage $0 $3,330 $0 $0
Subcontract $0 $0 $144,020 $0
Overtime $0 $0 $0 $202,680
Straight Time $203,500 $207,360 $59,904 $59,904
Total Cost $241,850 $217,240 $203,924 $262,584

Total Cost $207,360

Comparison of Two Plans

Cost Plan 1 Plan 2
Hiring $17,600 $0
Layoff $20,750 $0
Excess inventory $0 $0
Shortage $0 $0
Subconstract $0 #REF!
Overtime $0 $0
Straight time $203,500 $207,360
$241,850 #REF!