Dire Wolf Industries Annual Costs by Category

Total Annual Cost $ 5,001,800 $ 1,036,800 Regular Labor Cost

$ - Overtime Labor cost
Avg Cost ($/unit) $ 229.44 $ - Cost of Hiring
$ - Cost of Firing
$ 150,000 Cost of Inventory
$ - Cost of Stockouts
$ - Cost of Materials
$ 3,815,000 Cost of Outsourcing

Inputs:
$ 75 Material cost ($/unit) 160
$ 25 Inventory holding costs ($/unit/month) 10
$ 50 Cost of stockouts ($/unit/month) 500
$ 1,200 Cost for hiring and training new worker 500
$ 3,600 Cost for laying off an employee 0
4 Labor hours required per item produced 0
$ 2,400 Regular worker cost ($/month) 36
$ 25 Overtime cost ($/hour) 30
$ 175 Outsourcing cost ($/item) 36

Employees Overtime
Time Period Inventory (#) Workforce Employees Hired Fired (hrs)
1 500 36 0 0 0
2 500 36 0 0 0
3 500 36 0 0 0
4 500 36 0 0 0
5 500 36 0 0 0
6 500 36 0 0 0
7 500 36 0 0 0
8 500 36 0 0 0
9 500 36 0 0 0
10 500 36 0 0 0
11 500 36 0 0 0
12 500 36 0 0 0

Annual Sum 6,000 432 0 0 0

Hours worked By employee per month
Max overtime (hours/month/employee)
Starting inventory
Ending inventory (min)
Starting backlog
Allowable ending backlog (max)
Starting workforce
Ending workforce (min)
Ending workforce (max)

Monthly
Internal Outsourced Demand Maximum
Backlogged Production Production Forecast Production
(units) (units) (units) Available (units) (units)
0 0 2,800 3,300 2,800 1,440
0 0 2,800 3,300 2,800 1,440
0 0 1,000 1,500 1,000 1,440
0 0 920 1,420 920 1,440
0 0 780 1,280 780 1,440
0 0 950 1,450 950 1,440
0 0 1,050 1,550 1,050 1,440
0 0 1,200 1,700 1,200 1,440
0 0 2,000 2,500 2,000 1,440
0 0 2,500 3,000 2,500 1,440
0 0 3,000 3,500 3,000 1,440
0 0 2,800 3,300 2,800 1,440

0 0 21,800 21,800
Maximum
Overtime
(hours)
360
360
360
360
360
360
360
360
360
360
360
360
Dire Wolf Industries Annual Costs by Category
Total Annual Cost $ 5,001,800 $ 1,036,800 Regular Labor Cost
$ - Overtime Labor cost
Avg Cost ($/unit) $ 229.44 $ - Cost of Hiring
$ - Cost of Firing
$ 150,000 Cost of Inventory
$ - Cost of Stockouts
$ - Cost of Materials
$ 3,815,000 Cost of Outsourcing

Inputs:
$ 75 Material cost ($/unit) 160
$ 25 Inventory holding costs ($/unit/month) 10
$ 50 Cost of stockouts ($/unit/month) 500
$ 1,200 Cost for hiring and training new worker 500
$ 3,600 Cost for laying off an employee 0
4 Labor hours required per item produced 0
$ 2,400 Regular worker cost ($/month) 36
$ 25 Overtime cost ($/hour) 30
$ 175 Outsourcing cost ($/item) 36

Employees Overtime
Time Period Inventory (#) Workforce Employees Hired Fired (hrs)
1 500 36 0 0 0
2 500 36 0 0 0
3 500 36 0 0 0
4 500 36 0 0 0
5 500 36 0 0 0
6 500 36 0 0 0
7 500 36 0 0 0
8 500 36 0 0 0
9 500 36 0 0 0
10 500 36 0 0 0
11 500 36 0 0 0
12 500 36 0 0 0

Annual Sum 6,000 432 0 0 0

Hours worked By employee per month
Max overtime (hours/month/employee)
Starting inventory
Ending inventory (min)
Starting backlog
Allowable ending backlog (max)
Starting workforce
Ending workforce (min)
Ending workforce (max)

Monthly
Internal Outsourced Demand Maximum
Backlogged Production Production Forecast Production
(units) (units) (units) Available (units) (units)
0 0 2,800 3,300 2,800 1,440
0 0 2,800 3,300 2,800 1,440
0 0 1,000 1,500 1,000 1,440
0 0 920 1,420 920 1,440
0 0 780 1,280 780 1,440
0 0 950 1,450 950 1,440
0 0 1,050 1,550 1,050 1,440
0 0 1,200 1,700 1,200 1,440
0 0 2,000 2,500 2,000 1,440
0 0 2,500 3,000 2,500 1,440
0 0 3,000 3,500 3,000 1,440
0 0 2,800 3,300 2,800 1,440

0 0 21,800 21,800
Maximum
Overtime
(hours)
360
360
360
360
360
360
360
360
360
360
360
360
Dire Wolf II Annual Costs by Category
Total Annual Cost -$ 2,117,450 $ 1,036,800 Regular Labor Cost
Total Annual Profit $ 6,041,450 $ - Overtime Labor cost
Avg Cost ($/unit) -$ 97.13 $ - Cost of Hiring
Avg Profit ($/unit) $ 277.13 $ - Cost of Firing
-$ 3,154,250 Cost of Inventory
$ - Cost of Stockouts
$ - Cost of Materials
$ - Cost of Outsourcing

Inputs:
$ 75 Material cost ($/unit) 160
$ 25 Inventory holding costs ($/unit/month) 10
$ 50 Cost of stockouts ($/unit/month) 500
$ 1,200 Cost for hiring and training new worker 500
$ 3,600 Cost for laying off an employee 0
4 Labor hours required per item produced 0
$ 2,400 Regular worker cost ($/month) 36
$ 25 Overtime cost ($/hour) 30
$ 175 Outsourcing cost ($/item) 36

Employees Overtime
Time Period Inventory (#) Workforce Employees Hired Fired (hrs)
1 -2,300 36 0 0 0
2 -5,100 36 0 0 0
3 -6,100 36 0 0 0
4 -7,020 36 0 0 0
5 -7,800 36 0 0 0
6 -8,750 36 0 0 0
7 -9,800 36 0 0 0
8 -11,000 36 0 0 0
9 -13,000 36 0 0 0
10 -15,500 36 0 0 0
11 -18,500 36 0 0 0
12 -21,300 36 0 0 0

Annual Sum -126,170 432 0 0 0

Hours worked By employee per month
Max overtime (hours/month/employee)
Starting inventory
Ending inventory (min)
Starting backlog
Allowable ending backlog (max)
Starting workforce
Ending workforce (min)
Ending workforce (max)

Monthly
Internal Outsourced Demand
Backlogged Production Production Forecast
(units) (units) (units) Available (units) Price
0 0 0 500 2,800 $ 180
0 0 0 -2,300 2,800 $ 180
0 0 0 -5,100 1,000 $ 180
0 0 0 -6,100 920 $ 180
0 0 0 -7,020 780 $ 180
0 0 0 -7,800 950 $ 180
0 0 0 -8,750 1,050 $ 180
0 0 0 -9,800 1,200 $ 180
0 0 0 -11,000 2,000 $ 180
0 0 0 -13,000 2,500 $ 180
0 0 0 -15,500 3,000 $ 180
0 0 0 -18,500 2,800 $ 180

0 0 0 21,800
3924000
Maximum Maximum
Production Overtime
(units) (hours)
1,440 360
1,440 360
1,440 360
1,440 360
1,440 360
1,440 360
1,440 360
1,440 360
1,440 360
1,440 360
1,440 360
1,440 360
 Price Discount
(percent
Dire Wolf Industries Annual Costs by Category t Base Demand decrease) sales 4%
Total Annual Cost $ 3,402,250 $ 972,000 Regular Labor Cost 1 2,800 0% rev 4031100 2.7%
Total Annual Profit $ 628,850 $ 27,000 Overtime Labor cost 2 2,800 0% profit 2.2%
Avg Cost ($/unit) $ 150.21 $ 6,000 Cost of Hiring 3 1,000 0%
Avg Profit ($/unit) $ 27.76 $ 18,000 Cost of Firing 4 920 10%
$ 46,500 Cost of Inventory 5 780 10%
$ 16,000 Cost of Stockouts 6 950 0%
$ 1,235,250 Cost of Materials 7 1,050 0%
$ 1,081,500 Cost of Outsourcing 8 1,200 0%
9 2,000 0%
Inputs: 10 2,500 0%
$ 75 Material cost ($/unit) 160 Hours worked By employee per month 11 3,000 0%
$ 25 Inventory holding costs ($/unit/month) 10 Max overtime (hours/month/employee) 12 2,800 0%
$ 50 Cost of stockouts ($/unit/month) 500 Starting inventory
$ 1,200 Cost for hiring and training new worker 500 Ending inventory (min) Base Price $ 180
$ 3,600 Cost for laying off an employee 0 Starting backlog Elasticity 5.00 Keep this positive since discount is positive
4 Labor hours required per item produced 0 Allowable ending backlog (max)
$ 2,400 Regular worker cost ($/month) 36 Starting workforce
$ 25 Overtime cost ($/hour) 30 Ending workforce (min)
$ 175 Outsourcing cost ($/item) 36 Ending workforce (max)

Monthly
Time Internal Outsourced Demand Maximum Maximum
Perio Employees Overtime Backlogged Production Production Forecast Production Overtime
d Inventory (#) Workforce Employees Hired Fired (hrs) (units) (units) (units) Available (units) Price (units) (hours)
1 0 36 0 0 360 0 1,530 770 2,800 2,800 $ 180 1,530 360
2 0 36 0 0 0 250 1,440 1,110 2,800 2,800 $ 180 1,440 360
3 30 32 0 4 0 0 1,280 0 1,030 1,000 $ 180 1,280 320
4 0 32 0 0 0 70 1,280 0 1,380 1,380 $ 162 1,280 320
5 0 31 0 1 0 0 1,240 0 1,170 1,170 $ 162 1,240 310
6 290 31 0 0 0 0 1,240 0 1,240 950 $ 180 1,240 310
7 480 31 0 0 0 0 1,240 0 1,530 1,050 $ 180 1,240 310
8 560 32 1 0 0 0 1,280 0 1,760 1,200 $ 180 1,280 320
9 0 36 4 0 0 0 1,440 0 2,000 2,000 $ 180 1,440 360
10 0 36 0 0 0 0 1,440 1,060 2,500 2,500 $ 180 1,440 360
11 0 36 0 0 360 0 1,530 1,470 3,000 3,000 $ 180 1,530 360
12 500 36 0 0 360 0 1,530 1,770 3,300 2,800 $ 180 1,530 360

Annual Sum 1,860 405 5 5 1,080 320 16,470 6,180 22,650