A company forecasted its next year's sales as 130, 145, 150, 160, 170, 165*1000 for the next six months. The number of workdays are 20, 21, 23, 20, 22, 22 respectively in these months. Each employee is paid 2500 TL/month. Regular time capacity and overtime capacity per worker is 8 units/day and 2 units/day. Currently, the company employs 600 people. Cost of hiring one person (training, orientation costs, etc.) is estimated as 2000 TL/employee and cost of lay-off is estimated to be 5000 TL/employee. The company can subcontract some of its production without a capacity restriction, at a cost of 25 TL/product. Overtime work of an employee is 50% more costly than regular time work.
The firm estimates its inventory carrying cost to be 1 TL per unit per month. At the beginning, the company holds 100 units of inventory.
Please make the necessary computations and develop a level S&OP. What is the total cost of your plan? You can upload your computations as a file or just type below.
Forecasted Sales (in 1000 units of product)
20
27
Production Plan in Overtime (1000 units)
Production completed by Subcontracting
Inventory (in 1000 units)
Number of Employees
Hires
Laid off
Cost of Hiring
Cost of Layoff
Cost of Overtime Work
