Operations Management
Autor: Sourabh Lalwani • January 21, 2017 • Exam • 336 Words (2 Pages) • 867 Views
Assembly Line 1
[pic 1]
No of units | per unit contribution | Day contribution | No of Workers | Regular wages | Overtime wages | regular hours | overtime hours | total cost | scenario | hiring cost |
315 | 30 | 9450 | 7 | 18 | 30 | 8 | 0 | 1008 | Original |
|
420 | 30 | 12600 | 9 | 18 | 30 | 8 | 0 | 1296 | Solution 1 | 12000 |
420 | 30 | 12600 | 7 | 18 | 30 | 8 | 2 | 1428 | solution 2 | 0 |
Solution 1- Mr. Sane hires 9 workers then no overtime work will be required and demand will be fulfilled.
Involving cost of hiring 2 people =12000 rs. And low per day labor cost compared to any other solution available.
Solution 2 – Mr. sane doesn’t hire any worker and incurs the highest cost of labor wages/day but no training cost. He may operate by using his workforce overtime until 91 days but if order continuous for more than 91 days then it’s appropriate to opt solution 1.
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