Variabel Input Table Demand Forecast for Smartphones (in '000s)

Subject Amount Unit Month Demand

Total Worker Need 10 Person/team January 8,000
Capacity 125 Phones/team.hour February 10,000
Factory Operated day 20 day/month March 11,000
Factory Operated hour 8 hour/day April 11,000
Worker paid regular 4 t. rupiahs/hour/team May 11,000
Worker paid OT 6 t. rupiahs/hour/team June 12,000
Layoff cost 800 t. rupiahs/layoff/team July 13,000
hiring cost 400 t. rupiahs/hiring/team August 14,000
Inventory Cost 50 t. rupiahs/phone September 15,000
Atockout delayed discount 100 t. rupiahs/phone Oktober 17,000
Material Cost 500 t. rupiahs/phone November 19,000
Total Worker end of Dec 667 Team Desember 19,000
Cost Calculation Constrain
Period Hired (Ht) Laid Off Workface Overtime Inventory Stockout Production (Pt) Demand Workforce Capacity Iventory Overtime
(Lt) (Wt) (Ot) (It) (St) (Dt)
0 667 1,000
January 0 0 667 0 6,260 0 13,260 8,000 0 80 0 667
February 0 0 667 0 9,600 0 13,340 10,000 0 0 0 667
March 0 0 667 0 11,940 0 13,340 11,000 0 0 0 667
April 0 0 667 0 14,280 0 13,340 11,000 0 0 0 667
May 0 0 667 0 16,620 0 13,340 11,000 0 0 0 667
June 0 0 667 0 17,960 0 13,340 12,000 0 0 0 667
July 0 0 667 0 18,300 0 13,340 13,000 0 0 0 667
August 0 0 667 0 17,640 0 13,340 14,000 0 0 0 667
September 0 0 667 0 15,980 0 13,340 15,000 0 0 0 667
October 0 0 667 0 12,320 0 13,340 17,000 0 0 0 667
November 0 0 667 0 6,660 0 13,340 19,000 0 0 0 667
December 0 0 667 0 1,000 0 13,340 19,000 0 0 0 667

Period Hiring Layoff Reguler Overtime Inventory Stockout Material

Time
January 0 0 426,880 0 313,000 0 6,630,000
February 0 0 426,880 0 480,000 0 6,670,000
March 0 0 426,880 0 597,000 0 6,670,000
April 0 0 426,880 0 714,000 0 6,670,000
May 0 0 426,880 0 831,000 0 6,670,000
June 0 0 426,880 0 898,000 0 6,670,000
July 0 0 426,880 0 915,000 0 6,670,000
August 0 0 426,880 0 882,000 0 6,670,000
September 0 0 426,880 0 799,000 0 6,670,000
October 0 0 426,880 0 616,000 0 6,670,000
November 0 0 426,880 0 333,000 0 6,670,000
December 0 0 426,880 0 50,000 0 6,670,000

Total Cost 92,550,560 million rupiahs

Cost Calculation Constrain
Period Hired (Ht) Laid Off Workface Overtime Inventory Stockout Production (Pt) Demand Workforce Capacity Iventory Overtime
(Lt) (Wt) (Ot) (It) (St) (Dt)
0 667 1,000
January 0 167 500 0 0 0 7,000 8,000 0 3,000 0 500
February 0 0 500 0 0 0 10,000 10,000 0 0 0 500
March 50 0 550 0 0 0 11,000 11,000 0 0 0 550
April 0 0 550 0 0 0 11,000 11,000 0 0 0 550
May 0 0 550 0 0 0 11,000 11,000 0 0 0 550
June 50 0 600 0 0 0 12,000 12,000 0 0 0 600
July 50 0 650 0 0 0 13,000 13,000 0 0 0 650
August 50 0 700 0 0 0 14,000 14,000 0 0 0 700
September 50 0 750 0 0 0 15,000 15,000 0 0 0 750
October 316 0 1,066 0 4,320 0 21,320 17,000 0 0 0 1,066
November 1 0 1,067 0 6,660 0 21,340 19,000 0 0 0 1,067
December 0 400 667 0 1,000 0 13,340 19,000 0 0 0 667

Period Hiring Layoff Reguler Overtime Inventory Stockout Material

Time
January 0 133,600 320,000 0 0 0 3,500,000
February 0 0 320,000 0 0 0 5,000,000
March 20,000 0 352,000 0 0 0 5,500,000
April 0 0 352,000 0 0 0 5,500,000
May 0 0 352,000 0 0 0 5,500,000
June 20,000 0 384,000 0 0 0 6,000,000
July 20,000 0 416,000 0 0 0 6,500,000
August 20,000 0 448,000 0 0 0 7,000,000
September 20,000 0 480,000 0 0 0 7,500,000
October 126,400 0 682,240 0 216,000 0 10,660,000
November 400 0 682,880 0 333,000 0 10,670,000
December 0 320,000 426,880 0 50,000 0 6,670,000

Total Cost 86,495,400 million rupiahs

Answer
1. What is the annual cost of the current plan where Rudy maintains a workforce of 667
throughout the year? How much should the factory produce each month? What is
the maximum inventory under this plan?

Result of Case 1
Period Production Demand Inventory
(Pt) (Dt) (It)
January 13,260 8,000 6,260
February 13,340 10,000 9,600
March 13,340 11,000 11,940
April 13,340 11,000 14,280
May 13,340 11,000 16,620
June 13,340 12,000 17,960
July 13,340 13,000 18,300
August 13,340 14,000 17,640
September 13,340 15,000 15,980
October 13,340 17,000 12,320
November 13,340 19,000 6,660
December 13,340 19,000 1,000

The total annual cost under the current plan is 92,550,560,000,000 Rupiah. Please see the
table below for the amount should factory produce each month. The maximum inventory
under this plan is 18,300,000 in July.

2. How much can Rudy reduce cost by if he gives himself the flexibility of hiring and
firing teams as desired? How much should the factory produce each month? What is
the maximum inventory under this plan?

Result of Case 2
Period Production Demand Inventory
(Pt) (Dt) (It)
January 7,000 8,000 0
February 10,000 10,000 0
March 11,000 11,000 0
April 11,000 11,000 0
May 11,000 11,000 0
June 12,000 12,000 0
July 13,000 13,000 0
August 14,000 14,000 0
September 15,000 15,000 0
October 21,320 17,000 4,320
November 21,340 19,000 6,660
December 13,340 19,000 1,000

The total annual cost under the current plan is Rp 86,495,560,000,000 Rupiah.
So, there are Rp 6,055,160,000,000 costs can Rudy reduce If he gives himself the flexibility of hiring
and firing teams as desired. Please see the table below for the amount should factory
produce each month. The maximum inventory under this plan is 6,660,000 pcs on November.