Chapter 13, Problem 5P

a.

Summary Introduction

Interpretation:

The calculation of the production hours required to produce the exact quantity needed.

Concept Introduction:

The calculation of the production hours using the following formula:

  $\text{Hours needed}={\text{Production}}_i\times \text{Time required to produce one unit}$

b.

Summary Introduction

Interpretation:

The calculation of the available regular time production hours each period $T_m$ .

Concept Introduction:

The calculation of the time $T_m$ by using the following formula:

  $T_m=\text{Available labor hours per period}\times \text{No}\text{. of regular time Employees}$

c.

Summary Introduction

Interpretation:

The calculation of the overtime required hours.

Concept Introduction:

The overtime required hours can be calculated using the following formula:

  $\text{Overtime}=\text{ Required hours}-\text{Available hours}$

d.

Summary Introduction

Interpretation:

The calculation of the impact of the plan.

Concept Introduction:

The impact of the plan can be calculated using the following formula:

  $\text{Impact}=\frac{\text{Overtime hours}}{\text{Total no}\text{. of employees}}$

e.

Summary Introduction

Interpretation:

The calculation of the costs associated with the plan.

Concept Introduction:

The overtime cost and regular labor cost would be calculated and the total cost would be the sum of these two costs.

f.

Summary Introduction

Interpretation:

The evaluation of the plan in terms of cost, customer service, operations and human resources.

Concept Introduction:

The customer demand is being met, but costs are $81,000 over the costs of the hiring and firing plan in Problem 3.