Given

CloudChair
AlStrong
GreenComfort
Working days

Average Daily Deman

Jan
Feb
Mar
Apr
May
Jun
280
1000
2500
4100
4350
4400
1176
1190
1500
1650
1900
2000
1060
1102
1260
1400
1500
1550
16
15
18
18
15
18

CloudChair
AlStrong
GreenComfort

Monthly Demand
(Avg. Daily demand * no of days
73800
65250
79200
29700
28500
36000
25200
22500
27900

4480
18816
16960

15000
17850
16530

45000
27000
22680

Result: Existing worker count is 73 Skilled and 186 unskille

CloudChair
AlStrong
GreenComfort

4716
19807
17853

15790
18790
17400

47369
28422
23874

Production requirement @ 9
(monthly demand / 0.9
77685
68685
83369
31264
30000
37895
26527
23685
29369

Working hours
Hours per day
Days per year
Total annual hours
per worker
(hrs per day * days)

10 hrs/day
200 days/year

2000 hrs/year

Given Data
CloudChair
AlStrong
GreenComfort

AMP
$ 30.00
$ 90.00
$ 88.00

Raw material
$ 11.73
$ 49.70
$ 50.24

Avg. cost
$ 14.06
$ 59.71
$ 60.83

erage Daily Demand

Jul
Aug
Sep
Oct
Nov
Dec
4800
3950
2000
1500
900
900
1800
1750
1500
1400
1300
1100
1400
1250
1250
1250
1100
1000
18
17
17
18
16
14

Monthly Demand
demand * no of days in month)
86400
67150
32400
29750
25200
21250

34000
25500
21250

27000
25200
22500

14400
20800
17600

12600
15400
14000

n requirement @ 95%
onthly demand / 0.95)
90948
34106
26527

35790
26843
22369

28422
26527
23685

15158
21895
18527

13264
16211
14737

yield
70685
31316
22369

Required Labor (mins)

Skilled
Unskilled
2
9
12.8
28
13
31

Total production
Total Annual Demand
requirement @ 95% Required labor time (hours)
(Forecasted)
yield (Demand/0.95)
(no of units * min req/ 60)
524280
551873.68
18395.79
82781.05
306916
323069.47
68921.49
150765.75
253570
266915.79
57831.75
137906.49

Currently employed labor

Skilled (total Unskilled
req hrs/hrs in (total req
yr per
hrs/hrs in yr
worker)
per worker)
9.20
41.39
34.46
75.38
28.92
68.95
73

186

Labor costs
Skilled Labor
Unskilled Labor
($19 + 33%)= $25.27 ($9 + 10%) = $9.9

Per hour wage

One time hiring cost

One time layoff cost

$1500

2hrs * ($25 + 33%)

=$66.5

2* 150 * $25.27
= $7500

2 * 150 * $9.9
= $ 3000

Stockout costs
Profit margins= (AMP -Total production cost)
CloudChair
15.94
AlStrong
30.29
GreenComfort
27.17
Inventory holding costs per unit per annum
Interest rate * Production cost
CloudChair
AlStrong
GreenComfort

1.6872
7.1652
7.2996 *Cost of capital is 12% pa

Comments

Given: Two hour salary

of supervisor
Assumption:
2 months salary

pital is 12% pa

Jan
Feb
Mar
Apr
Keep the constant workforce at current level and go for overtime as an when required. Overtime cost
Chase method: Production will meet demand in each month.

Monthly production requirement

CloudChair
AlStrong
GreenComfort

4716
19807
17853

15790
18790
17400

47369
28422
23874

77685
31264
26527

16

15

18

18

160

150

180

180

Days Available in month

Monthly hours available per worker
(Days* hrs per day (10))

Skilled labor hours for all workforce

Unskilled labor hours for all workforce

CloudChair
AlStrong
GreenComfort
Total Skilled hours req.(hrs)

CloudChair
AlStrong
GreenComfort
Total Unskilled hours req. (hrs)

Skilled
Unskilled

11680
29760

157.20
4225.49
3868.15
8250.84

707.40
9243.27
9224.05
19174.72

10950
27900

Total available hours

(No of workers* hrs per wo
13140
13140
33480
33480

526.33
4008.53
3770.00
8304.87

Skilled hours requireme

(no. of units * req. skilled labor
1578.97 2589.50
6063.36 6669.65
5172.70 5747.52
12815.03 15006.67

Unskilled hours requirem

(no. of units * req. unskilled labo
2368.50 7105.35 11652.75
8768.67 13263.60 14589.87
8990.00 12334.90 13705.62
20127.17 32703.85 39948.23

Overtime hours neede

(Total required hours - Availabl
0.00 1866.67
0.00 6468.23

Costs for coming 6 mon

Regular Labor costs
(Total hrs required * per hour wage)
Skilled
Unskilled

*Wage is $25.27 for skilled labor and $9.9 for unskilled

332047.8 332047.8
331452
331452

Overtime Labor cost

(Total hrs required * per hour wage * 1.5)
Skilled
unskilled

*overtime costs are 1.5 times the regular costs

0 70756.13
0 96053.27

Profit statement for coming 6 months

Revenues
Total sales revenue
(Demand met after 95% yield * AMP)

41,742,482.00

Material cost
(Units produced*Material cost)
Regular labor cost
Overtime cost
Inventory/Stockout costs

$
$
$
$

22,392,795.27
3,833,554.40
1,123,501.14
-

Total profit margin

14,392,631.19

Cost

//producing as and w

May
Jun
Jul
Aug
red. Overtime cost is 1.5 times regular labor cost.

Sep

Oct

Nov

Dec

tion requirement (forecasted)

68685
30000
23685

83369
37895
29369

90948
34106
26527

70685
31316
22369

35790
26843
22369

28422
26527
23685

15158
21895
18527

13264
16211
14737

15

18

18

17

17

18

16

14

150

180

180

170

170

180

160

140

al available hours
workers* hrs per worker)
10950
13140
27900
33480

13140
33480

12410
31620

12410
31620

13140
33480

11680
29760

10220
26040

d hours requirement
* req. skilled labor min /60)
2289.50 2778.97 3031.60 2356.17 1193.00
6400.00 8084.27 7275.95 6680.75 5726.51
5131.75 6363.28 5747.52 4846.62 4846.62
13821.25 17226.52 16055.06 13883.53 11766.12

947.40
5659.09
5131.75
11738.24

505.27
4670.93
4014.18
9190.38

442.13
3458.35
3193.02
7093.50

ed hours requirement
* req. unskilled labor min/60)
10302.75 12505.35
14000.00 17684.33
12237.25 15173.98
36540.00 45363.67

13642.20
15916.13
13705.62
43263.95

4263.30 2273.70 1989.60

12379.27 10217.67 7565.13
12237.25 9572.28 7614.12
28879.82 22063.65 17168.85

time hours needed

red hours - Available hours)
2871.25 4086.52
8640.00 11883.67

2915.06
9783.95

10602.75 5368.50
14614.13 12526.73
11557.32 11557.32
36774.20 29452.55

1473.53
5154.20

nd $9.9 for unskilled

276706.5 332047.8 332047.8 313600.7
276210
331452
331452
313038

for coming 6 months

egular costs
108834.7 154899.4 110495.5 55854.15
128304 176472.5 145291.7 76539.87

producing as and when demand arises

Total

Total

3,833,554.40

1,123,501.14

Total for coming

6 months
438741
193003
152351

Toal demand
met (@ 95%
Required Labour
yield)
per unit(mins)
416804
2
9
183353
12.8
28
144734
13
31

Jan
Feb
Mar
Apr
Keep the constant workforce at current level and go for subcontract some activities as an when requir
Production will meet demand in each month.

Monthly production requirement

CloudChair
AlStrong
GreenComfort

4716
19807
17853

15790
18790
17400

47369
28422
23874

77685
31264
26527

16

15

18

18

160

150

180

180

Days Available in month

Monthly hours available per worker
(Days* hrs per day (10))

Skilled labor hours for all workforce

Unskilled labor hours for all workforce

CloudChair
AlStrong
GreenComfort
Total Skilled hours req.(hrs)

CloudChair
AlStrong
GreenComfort
Total Unskilled hours req. (hrs)

Skilled
Unskilled

11680
29760

157.20
4225.49
3868.15
8250.84

707.40
9243.27
9224.05
19174.72

10950
27900

Total available hours

(No of workers* hrs per wo
13140
13140
33480
33480

526.33
4008.53
3770.00
8304.87

Skilled hours requireme

(no. of units * req. skilled labor
1578.97 2589.50
6063.36 6669.65
5172.70 5747.52
12815.03 15006.67

Unskilled hours requirem

(no. of units * req. unskilled labo
2368.50 7105.35 11652.75
8768.67 13263.60 14589.87
8990.00 12334.90 13705.62
20127.17 32703.85 39948.23

Hours subcontracted
(Total required hours - Availabl
0.00 1866.67
0.00 6468.23

Costs for coming 6 mon

Regular Labor costs
(Total hrs required * per hour wage)
Skilled
Unskilled

*Wage is $25.27 for skilled labor and $9.9 for unskilled

332047.8 332047.8
331452
331452

Subcontracted Labor cost

(Total hrs required * per hour wage * 1.2)
Skilled
unskilled

*subcontracting costs are 1.2 times regular costs

0 56604.9
0 76842.61

Profit statement for coming 6 months

Revenues
Total sales revenue
(Demand met after 95% yield * AMP)

41,742,482.00

Material cost
(Units produced*Material cost)
Regular labor cost
Subcontacted labor cost
Inventory/Stockout costs

$
$
$
$

22,392,795.27
3,833,554.40
898,800.92
-

Total profit margin

14,617,331.41

Cost

//producing as and w

May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
s as an when required. Some portion of work like seat formation etc. can be subcontracted

tion requirement (forecasted)

68685
30000
23685

83369
37895
29369

90948
34106
26527

70685
31316
22369

35790
26843
22369

28422
26527
23685

15158
21895
18527

13264
16211
14737

15

18

18

17

17

18

16

14

150

180

180

170

170

180

160

140

al available hours
workers* hrs per worker)
10950
13140
27900
33480

13140
33480

12410
31620

12410
31620

13140
33480

11680
29760

10220
26040

d hours requirement
* req. skilled labor min /60)
2289.50 2778.97 3031.60 2356.17 1193.00
6400.00 8084.27 7275.95 6680.75 5726.51
5131.75 6363.28 5747.52 4846.62 4846.62
13821.25 17226.52 16055.06 13883.53 11766.12

947.40
5659.09
5131.75
11738.24

505.27
4670.93
4014.18
9190.38

442.13
3458.35
3193.02
7093.50

ed hours requirement
* req. unskilled labor min/60)
10302.75 12505.35
14000.00 17684.33
12237.25 15173.98
36540.00 45363.67

13642.20
15916.13
13705.62
43263.95

4263.30 2273.70 1989.60

12379.27 10217.67 7565.13
12237.25 9572.28 7614.12
28879.82 22063.65 17168.85

urs subcontracted
red hours - Available hours)
2871.25 4086.52
8640.00 11883.67

2915.06
9783.95

10602.75 5368.50
14614.13 12526.73
11557.32 11557.32
36774.20 29452.55

1473.53
5154.20

nd $9.9 for unskilled

276706.5 332047.8 332047.8 313600.7
276210
331452
331452
313038

for coming 6 months

s regular costs
87067.79 123919.5 88396.38 44683.32
102643.2
141178 116233.3 61231.9

producing as and when demand arises

Total

Total

3,833,554.40

898,800.92

Total for coming

6 months
438741
193003
152351

Toal demand
met (@ 95%
yield)
Required Labour per unit(mins)
416804
2
9
183353
12.8
28
144734
13
31

Jan

Feb

Chase method: Start hiring workers in March as and when need arises in a particular mont
Hire and fire as per production demand. As in March workers required are 72 while current

Monthly productio
CloudChair
A1Strong
GreenComfort
Days Available
Hours available/Worker

4716
19807
17853

15790
18790
17400

16
160

15
150

Production in coming 6 months

*Existing skilled worker count is 73

Skilled
(no. of units *
CloudChair
A1Strong
GreenComfort
Total Skilled hours req.

0.00

(i) Workers required each month

(Total required hrs. / hrs each month per
worker) (i)

0.00
73
*existing
count

(ii) Workers needed to be hired/fired

(if operating @ 100% efficiency)
(Current req- previous month's strength)
(iii) Actual strength of new workers hired (@
80% efficiency)
(additional worker req/0.8)
(iv) Actual no of workers laid of
(current req. - previous month's strength)
(v) Total workers in that month
(previous month strength+ hired - laid off)

73

Skilled la
Monthly wage
(Hourly wage* no of hours in month * no of
workers)

*Existing unskilled worker count is 186

Unskilled
(no. of units *
CloudChair
A1Strong

GreenComfort
Total unskilled hours req.

0.00

0.00

(i) Workers required each month

(Total required hrs. / hrs each month per
worker) (i)

186
*existing
count

(ii) Workers needed to be hired/fired

(if operating @ 100% efficiency)
(Current req- previous month's strength)
(iii) Actual strength of new workers hired (@
80% efficiency)
(additional worker req/0.8)
(iv) Actual no of workers laid of
(current req. - previous month's strength)
(v) Total workers in that month
(previous month strength+ hired - laid off)

186

Unskilled l
Monthly wage
(Hourly wage* no of hours in month * no of
workers)

Hiring Cost
Skilled labor hired
(no of hires * hiring cost per worker($1500))

36,000.00

Unskilled labor hired

(no of hires * hiring cost per worker($66.5))
Total

$
$

4,588.50
40,588.50

Skilled labor laid of

(no of laid of * cost per worker($7500))

112,500.00

Unskilled labor laid of

(no of laid of * cost per worker($3000))
Total

$
$

114,000.00
226,500.00

Laying off cost

Profit statement for coming 6 months

Revenues
Total sales revenue
(Demand met after 95% yield * AMP)

41,742,482.00

$
$

22,392,795.27
2,290,725.50

Cost
Material cost
(Units produced*Material cost)
Skilled labor cost

Unskilled labor cost

Hiring Cost
Laying of cost
Inventory cost

$
$
$
$

2,360,457.00
40,588.50
226,500.00
-

Total profit margin

14,431,415.73

Mar

Apr

May

Jun

Jul

Aug

arises in a particular month

quired are 72 while current strength of 73, we will start hiring in April.

Monthly production requirement (forecasted)

47369
28422
23874

77685
31264
26527

68685
30000
23685

83369
37895
29369

90948
34106
26527

70685
31316
22369

18
180

18
180

15
150

18
180

18
180

17
170

Skilled hours requirement

(no. of units * req. skilled labor min /60)
1578.97
2589.50
2289.50
2778.97
6063.36
6669.65
6400.00
8084.27
5172.70
5747.52
5131.75
6363.28
12815.03
15006.67
13821.25
17226.52

3031.60
7275.95
5747.52
16055.06

2356.17
6680.75
4846.62
13883.53

72

84

93

96

90

82

11

-7

-8

14

-7

-8

73

87

95

97

90

82

360097.50

441214.20

409374.00

352263.80

Unskilled hours requirement

(no. of units * req. skilled labor min /60)
7105.35
11652.75
10302.75
12505.35
13263.60
14589.87
14000.00
17684.33

13642.20
15916.13

10602.75
14614.13

0
*labors are
not laid of
in March

Skilled labor cost

332047.80

395728.20

12334.90
32703.85

13705.62
39948.23

12237.25
36540.00

15173.98
45363.67

13705.62
43263.95

11557.32
36774.20

182

222

244

253

241

217

36

13

-14

-24

45

17

-14

-24

186

231

248

255

241

217

368280.00

454410.00

429462.00

365211.00

0
*labors are
not laid of
in March

Unskilled labor cost

331452.00

411642.00

//producing as and when demand arises

Sep

Oct

Nov

Dec

Total for coming 6

months

35790
26843
22369

28422
26527
23685

15158
21895
18527

13264
16211
14737

17
170

18
180

16
160

14
140

0.00

0.00

0.00

438741
193003
152351

0.00

Total skilled workers

hired/fired

24
15

Total
-

2290725.50

0.00

0.00

0.00

0.00

Total unskilled
workers hired/fired

69
38

Total
-

2360457.00

Total demand met

(@95% yield)

Required Labour
(mins)
Skilled

416804
183353
144734

2
12.8
13

Unskilled
9
28
31

Cost comparison b/w hiring and training a skilled labor

Skilled Labor
Unskilled
Hiring charges for skilled labor
$
1,500.00 $
66.50
Per hour wages
$25+ 33% = $25.27 $9 + 10% = $9.9
Efficiency of operation in 1st month
Avg. working hours in a month

80%
150

20% of monthly
Overhead to get a 100% skilled labor
salary =
150*$25.27*.20
$
758.10
Total value (Hiring cost + Overhead) $
2,258.10

0%
150
100% monthly
salary=
150*$9.9*1
$
1,485.00
$
1,551.50

Thus hiring and training a unskilled worker is efficient than hiring a skilled worker
Further analysis is done on next Sheet 4.2 Training & Hiring in March

* Training means labor is not

working thus 0%

g a skilled worker

Jan
Feb
Hire unskilled workers in previous month and train them, so that they are available in next montha

Monthly productio
CloudChair
A1Strong
GreenComfort
Days Available
Hours available/Worker

4716
19807
17853

15790
18790
17400

16
160

15
150

Production in coming 6 months

*Existing skilled worker count is 73

Skilled
(no. of units *
CloudChair
A1Strong
GreenComfort
Total Skilled hours req.

0.00

(i) Workers required each month

(Total required hrs. / hrs each month per
worker) (i)
Unskilled labors to be hired and trained
(next month req. - current strength)

0.00
73
*existing
count

Workers to be laid of
(current req. - previous months strength)
Total skilled worker strength
(previous month strength+ hired - laid off)

73

Labor cost for

Skilled labor monthly wage
(Hourly wage* no of hours in month * no of
skilled workers)

Training cost of unskilled :monthly wage of

unskilled labors
(Hourly wage* no of hours in month * no of
unskilled workers)

*Existing unskilled worker count is 186

Unskilled
(no. of units *
CloudChair

A1Strong
GreenComfort
Total unskilled hours req.

0.00

0.00

(i) Workers required each month

(Total required hrs. / hrs each month per
worker) (i)

186
*existing
count

(ii) Workers needed to be hired/fired

(if operating @ 100% efficiency)
(Current req- previous month's strength)
(iii) Actual strength of new workers hired (@
80% efficiency)
(additional worker req/0.8)
(iv) Actual no of workers laid of
(current req. - previous month's strength)
(v) Total workers in that month
(previous month strength+ hired - laid off)

186

Unskilled l
Monthly wage
(Hourly wage* no of hours in month * no of
workers)

Hiring Cost
Skilled labor hired
(no of hires * hiring cost per worker($1500))

Unskilled labor hired

(no of hires * hiring cost per worker($66.5))
Total

$
$

*no skilled labors are hired, on

6,118.00 *23 labors are trained to becom

6,118.00

Laying off cost

Skilled labor laid of
(no of laid of * cost per worker($7500))

105,000.00

Unskilled labor laid of

(no of laid of * cost per worker($3000))
Total

$
$

114,000.00
219,000.00

Profit statement for coming 6 months

Revenues
Total sales revenue
(Demand met after 95% yield * AMP)

41,742,482.00

22,392,795.27

Cost
Material cost
(Units produced*Material cost)

Skilled labor cost

Unskilled labor cost
Hiring Cost
Training Cost
Laying of cost

$
$
$
$
$

2,264,950.10
2,360,457.00
6,118.00
40,095.00
219,000.00

Total profit margin

14,459,066.63

Mar
Apr
May
y are available in next monthas skilled labor

Jun

Jul

Aug

Monthly production requirement (forecasted)

47369
28422
23874

77685
31264
26527

68685
30000
23685

83369
37895
29369

90948
34106
26527

70685
31316
22369

18
180

18
180

15
150

18
180

18
180

17
170

Skilled hours requirement

(no. of units * req. skilled labor min /60)
1578.97
2589.50
2289.50
2778.97
6063.36
6669.65
6400.00
8084.27
5172.70
5747.52
5131.75
6363.28
12815.03
15006.67
13821.25
17226.52

3031.60
7275.95
5747.52
16055.06

2356.17
6680.75
4846.62
13883.53

72

84

93

96

90

82

11

*labors are
not laid off in
March

-6

-8

73

84

93

96

90

82

332047.80

382082.40

352516.50

436665.60

409374.00

352263.80

19602.00

16038.00

4455.00

0.00

0.00

0.00

Unskilled hours requirement

(no. of units * req. skilled labor min /60)
7105.35
11652.75
10302.75
12505.35

13642.20

10602.75

13263.60
12334.90
32703.85

14589.87
13705.62
39948.23

14000.00
12237.25
36540.00

17684.33
15173.98
45363.67

15916.13
13705.62
43263.95

14614.13
11557.32
36774.20

182

222

244

253

241

217

36

13

-14

-24

45

17

-14

-24

186

231

248

255

241

217

368280.00

454410.00

429462.00

365211.00

0
*labors are
not laid of
in March

Unskilled labor cost

331452.00

411642.00

no skilled labors are hired, only unskilled are hired

23 labors are trained to become skilled, & 69 are hired for unskilled work

Sep

Oct

Nov

Dec
Total for coming 6
months

35790
26843
22369

28422
26527
23685

15158
21895
18527

13264
16211
14737

17
170

18
180

16
160

14
140

0.00

0.00

0.00

438741
193003
152351

Total demand met

(@95% yield)

416804
183353
144734

0.00

Total
*unskilled labors
23 hired

-14 *skilled labor laid off

Total
-

2264950.10

40095.00

0.00

0.00

0.00

0.00

Total unskilled
workers hired/fired

69
38

Total
-

2360457.00

Required Labour
(mins)
Skilled
2
12.8
13

Unskilled
9
28
31

Jan
Feb
Invest in design change @ $15,000 one time cost, and hire the peak amount of labors required in Apri

Monthly production requ

CloudChair
AlStrong
GreenComfort
Days Available in month
Monthly hours available per worker
(Days* hrs per day (10))

4716
19807
17853

15790
18790
17400

16

15

160

150

Total availab
(No of workers* h
Skilled labor hours for all workforce
Unskilled labor hours for all workforce

11680
29760

10950
27900

Skilled hours r
(no. of units * req. ski
CloudChair
AlStrong
GreenComfort
Total Skilled hours req.(hrs)
Total workers required
(monthly hours req./ total hrs.
per worker in a month)

0.00

0.00

Additional workers required to be hired in April

(total workers required - current strength i.e. 73) 96 - 73 = 23

Unskilled hours requirement

(no. of units * req. unskilled labor min/60)
CloudChair
AlStrong
GreenComfort
Total Unskilled hours req. (hrs)

*For first month (March) time will same i.e. 9

0.00
0.00

Total workers required

(monthly hours req./ total hrs.
per worker in a month)
Additional workers required to be hired in April
(total workers required - current strength i.e.
186)
244-186 = 58
Labor Costs
Total working hours per worker
No. of Skilled labor

Cost @ $25.27 per hour

No. of Unskilled labor
Cost @$9.9 per hour

Hiring Cost
Skilled labor hired
(no of hires * hiring cost per worker($1500))

$ 34,500.00

Unskilled labor hired

(no of hires * hiring cost per worker($66.5))
Total

$ 3,857.00
$ 38,357.00

Profit statement for coming 6 months

Revenues
Total sales revenue
(Demand met after 95% yield * AMP)

41,742,482.00

Cost
Design Change

15,000.00

Material cost
(Units produced*Material cost)
Skilled labor cost
Unskilled labor cost

$
$
$

22,392,795.27
2,418,339.00
2,408,868.00

Total profit margin

14,507,479.73

Mar
Apr
May
ount of labors required in April itself

Jun

Jul

Aug

Sep

Monthly production requirement (forecasted)

47369
28422
23874

77685
31264
26527

68685
30000
23685

83369
37895
29369

90948
34106
26527

70685
31316
22369

35790
26843
22369

18

18

15

18

18

17

17

180

180

150

180

180

170

170

Total available hours

(No of workers* hrs per worker)
13140
13140
10950
33480
33480
27900

13140
33480

13140
33480

12410
31620

12410
31620

2778.97
8084.27
6363.28
17226.52

3031.60
7275.95
5747.52
16055.06

2356.17
6680.75
4846.62
13883.53

96

89

82

will be 8 minutes
11115.87 12126.40
17684.33 15916.13
15173.98 13705.62
43974.18 41748.15

9424.67
14614.13
11557.32
35596.12

Skilled hours requirement

(no. of units * req. skilled labor min /60)
1578.97
2589.50
2289.50
6063.36
6669.65
6400.00
5172.70
5747.52
5131.75
12815.03 15006.67 13821.25
71

(March) time will same

7105.35
13263.60
12334.90
32703.85

83

92

i.e. 9 minutes for rest it

10358.00
9158.00
14589.87 14000.00
13705.62 12237.25
38653.48 35395.25

182

215

236

244

232

209

180
73

180
96

150
96

180
96

180
96

170
96

0.00

0.00

332047.8

436665.6

363888

436665.6

436665.6

412406.4

186
331452.0

244
434808.0

244
362340.0

244
434808.0

244
434808.0

244
410652.0

Comments
23 new skilled labor hired in April
58 new unskilled labor hired in April

Oct

Nov

Dec

Total for coming 6

months
13264
438741
16211
193003
14737
152351

28422
26527
23685

15158
21895
18527

18

16

14

180

160

140

13140
33480

11680
29760

10220
26040

0.00

Total demand met

(@95% yield)
Required Labour per unit(
416804
2
183353
12.8
144734
13

0.00

0.00
Max required is in month of June i.e. 96

0.00

0.00

0.00
Max required is in month of June i.e. 244

Total

2,418,339.00

2,408,868.00

equired Labour per unit(mins)

8
28
31

Jan

Feb

Monthly production r
CloudChair
AlStrong
GreenComfort
Days Available in month
Monthly hours available per worker
(Days* hrs per day (10))

Skilled labor hours for all workforce

Unskilled labor hours for all workforce

4716
19807
17853

15790
18790
17400

16

15

160

150

Total ava
(No of worker
10950
27900

11680
29760

Skilled hour
(no. of units * req.
CloudChair
AlStrong
GreenComfort
Total Skilled hours req.(hrs)
Total hours required in months
Total hours available per worker

0.00

0.00

Total workers required

(hours req./ total hrs. per worker)
Additional workers required to be hired in April
(total workers required - current strength i.e. 73)

Unskilled hours requirement

(no. of units * req. unskilled labor min/60)
CloudChair
AlStrong
GreenComfort
Total Unskilled hours req. (hrs)
Total hours required in months
Total hours available per worker (April to Aug )

Total workers required

(hours req./ total hrs. per worker)

*For first month (March) time will same i.e. 9

0.00
0.00

Additional workers required to be hired in April

(total workers required - current strength i.e.
186)
Labor Costs
Total working hours per worker
No. of Skilled labor
Cost @ $25.27 per hour
No. of Unskilled labor
Cost @$9.9 per hour

Hiring Cost
Skilled labor hired
(no of hires * hiring cost per worker($1500))

$ 24,000.00

Unskilled labor hired

(no of hires * hiring cost per worker($66.5))
Total

$ 2,793.00
$ 26,793.00

Production level by maintianing constant rate in

months of Apr - Aug
Monthly production hrs per worker
% of overall working hours from April to Aug
CloudChair
AlStrong
GreenComfort
Demand met (@ 95% yield)
CloudChair
AlStrong
GreenComfort

Inventory levels/ Stockout (Cummulative)

CloudChair
AlStrong
GreenComfort
Inventory/Stockout costs
CloudChair
AlStrong
GreenComfort
Total

Inventory
$ 1,389.69
$ 2,882.20
$
212.91
$ 4,484.80

Profit statement for coming 6 months

$
$
$
$

Stockout
101,091.48
79,692.99
189,021.69
369,806.16

Revenues
Total sales revenue
(Demand met after 95% yield * AMP)

41,742,482.00

Cost
Design Change

15,000.00

Material cost
(Units produced*Material cost)
Skilled labor cost
Unskilled labor cost
Inventory costs
Stockout costs

$
$
$
$
$

22,392,795.27
2,266,213.60
2,272,644.00
4,484.80
369,806.16

Total profit margin

14,421,538.17

Mar

Apr

May

Jun

Jul

Aug

Sep

Monthly production requirement (forecasted)

47369
28422
23874

77685
31264
26527

68685
30000
23685

83369
37895
29369

90948
34106
26527

70685
31316
22369

35790
26843
22369

18

18

15

18

18

17

17

180

180

150

180

180

170

170

Total available hours

(No of workers* hrs per worker)
13140
13140
10950
33480
33480
27900

13140
33480

13140
33480

12410
31620

12410
31620

Skilled hours requirement

(no. of units * req. skilled labor min /60)
1578.97
2589.50
2289.50
2778.97
6063.36
6669.65
6400.00
8084.27
5172.70
5747.52
5131.75
6363.28
12815.03 15006.67 13821.25 17226.52
12815.03
75993.03
180
860.00

3031.60
7275.95
5747.52
16055.06

2356.17
6680.75
4846.62
13883.53

12126.40
15916.13
13705.62
41748.15

9424.67
14614.13
11557.32
35596.12

0.00

89
72
89- 73 = 16

h) time will same i.e. 9 minutes for rest it will be 8 minutes

7105.35 10358.00
9158.00 11115.87
13263.60 14589.87 14000.00 17684.33
12334.90 13705.62 12237.25 15173.98
32703.85 38653.48 35395.25 43974.18
32703.85
195367.18
180.00
860.00
182

228

0.00

228 - 186 = 42

180
73
332047.8

180
89
404825.4

150
89
337354.5

180
89
404825.4

180
89
404825.4

170
89
382335.1

186
331452.0

228
406296.0

228
338580.0

228
406296.0

228
406296.0

228
383724.0

Comments
16 new skilled labor hired in April
42 new unskilled labor hired in April

180

180
150
180
180
170
0.2093023 0.1744186 0.2093023 0.2093023 0.1976744
47369
81915
68263
81915
81915
77364
28422
34447
28706
34447
34447
32533
23874
26891
22409
26891
26891
25397

45001
27001
22680

77819
32725
25546

64850
27271
21289

77819
32725
25546

77819
32725
25546

73496
30906
24127

1
1
0

4020
3026
346

3620
1797
-865

2239
-1478
-3219

-6342
-1153
-2873

4
3
4

Inventory cost @12%pa. Therefore 1% for a month. Left up inventory ca

Stockout costs are opportunity lost.

Oct

Nov

Dec
Total for coming 6
months
13264
438741
16211
193003
14737
152351

28422
26527
23685

15158
21895
18527

18

16

14

180

160

140

13140
33480

11680
29760

10220
26040

0.00

0.00

0.00

*not laying off

workers in March
kept at 73

0.00

0.00

0.00

*not laying off

workers in March
kept at 186

Total demand met

(@95% yield)
Required Labour per unit(
416804
2
183353
12.8
144734
13

Total

2,266,213.60

2,272,644.00

Total production
hours from April
to May
860

Total
inventory Stockouts
9884
-6342
4827
-2631
350
-6957

*Stockout met demand lost opportunity cost

equired Labour per unit(mins)

8
28
31

Total from April to

Aug
391372
164581
128477