month

jan
feb
mar
apr
may
jun
july
aug
sept
oct
nov
dec

demand
cumulative demand
peak demand
58.125
58.125
58.125
58.15
116.275
58.1375
51.17
167.445
55.815
47.621
215.066
53.7665
52.314
267.38
53.476
50.368
317.748
52.958
50.101
367.849 52.5498571429
50.928
418.777
52.347125
50.466
469.243 52.1381111111
50.498
519.741
51.9741
50.63
570.371 51.8519090909
50.071
620.442
51.7035

month
demand
production
beg. Inv
end. Inv
carrying cost
backorder
backordering cost
labor cost

jan

total
total
total
total

inventory carrying cost

backorder cost
firing cost
payroll cost

total annual cost

feb

mar

58.125
51
2.88
0

58.15
51
0
0

51.17
51
0
0

4.245
3.18375
6196500

7.15
5.3625
6196500

0.17
0.1275
6196500

18.849
8.67375
265000
74358000

0.265
74.358

102.14575 million or 102145750

workers required
514.3805309735
514.4911504425
493.9380530973
475.8097345133
473.2389380531
468.6548672566
465.0429835651
463.2488938053
461.3992133727
459.9477876106
458.8664521319
457.5530973451

apr

514
514
494
476
473
469
465
463
461
460
459
458

(demand of cases in million)

(3month moving ave

carrying cost= Rs0.5/case

backorder cost=Rs0.

labor cost=Rs13500

total no. of employee

may
jun
july
47.621
52.314
50.368
51
51
51
0
3.379
2.065
3.379
2.065
2.697
1.6895
1.0325
1.3485

6196500

6196500

6196500

aug
sept
oct
50.101
50.928
50.466
50.498
51
51
51
51
2.697
3.596
4.13
4.664
3.596
4.13
4.664
5.166
1.798
2.065
2.332
2.583

6196500

6196500

6196500

6196500

3month moving average)

ackorder cost=Rs0.75/case

otal no. of employees=512

nov

dec
50.63
50.071
51
51
5.166
5.536
5.536
6.465
2.768
3.2325

6196500

6196500

month
demand
workers needed
no. of workers hired
no. of workers fired
hiring cost
firing cost
labor cost

jan

feb

total hiring cost

total firing cost
total payroll

14584
280000
77031000

total annual cost

77325584 or 77.325584 miilion

58.125
514
2

mar
58.15
514
0
0

apr
51.17
494

may
jun
47.621
52.314
50.368
476
473
469

20

18

100000
6669000

90000
6426000

15000
6385500

20000
6331500

14584
6939000

6939000

july
aug
sept
oct
nov
dec
50.101
50.928
50.466
50.498
50.63
50.071
465
463
461
460
459
458
4

20000
6277500

10000
6250500

10000
6223500

5000
6210000

5000
6196500

5000
6183000

hiring cost
7292

55
5000

month
demand
capacity
capacity needed
idle time
overtime
labor cost
overtime cost

jan

feb

mar

apr

58.125
514
514

58.15
514
514

51.17
514
494
20

6939000

6939000

6939000

may
jun
47.621
52.314
50.368
514
514
514
476
473
469
38
41
45

6939000

total overtime cost

total payroll

0
83268000

total annual cost

83268000 or 83.268million

6939000

6939000

july
aug
sept
oct
nov
dec
50.101
50.928
50.466
50.498
50.63
50.071
514
514
514
514
514
514
465
463
461
460
459
458
49
51
53
54
55
56
6939000

6939000

6939000

6939000

6939000

6939000

demand in millions

emand in millions

hiring cost
7292

capacity in terms of cases

58.125million
employee capacity
58.125/0.113
514employees

firing cost
5000
pay roll
13500