Foldrite Case

Group: Nguyen Huy Cuong Le Quynh Anh Dang Thi Xuan Phuong

SOLUTION FOR FOLDRITE FURNITURE CASE
Service level is 95% (5% of output is defect)
Wages skilled / labor hour = 19 + 33% * 19 = $25.27
Wages unskilled / labor hour = 9 + 10%*9 = $9.9
Hiring cost per worker (skilled) = $1,500/worker
Hiring cost per worker (unskilled) = 25*2*1.33 = $66.5/worker
Training cost per unskilled to be skilled (4 weeks with full wage) = 4*9.9 = $39.6/worker
Production requirement = demand forecast = Sum of (daily demand * production days)
Production hours required (skilled) = Sum (Production requirement * time to produce one unit)
Production hours required (unskilled) = Sum (Production requirement *time to produce one unit)
Hours per month per worker = Workdays per month * Working hours a day (10)
Workers required (skilled) = Production hours required (skilled)/hours per month per worker
Workers required (unskilled) = Production hours required (unskilled)/hours per month per worker
Hiring cost (unskilled) = No of new workers (unskilled) * hiring cost (66.5)
Direct Labor cost = Production hours required (skilled) * wages (25.27) + Production hours required (unskilled) * wages (9.9)
Layoff cost is calculated from http://www.coworkforce.com/uibestimator/ as given in the case Name | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | Cloud Chair (unit) | 4,480 | 15,000 | 45,000 | 73,800 | 65,250 | 79,200 | 86,400 | 67,150 | 34,000 | 27,000 | 14,400 | 12,600 | 524,280 | AlStrong (unit) | 18,816 | 17,850 | 27,000 | 29,700 | 28,500 | 36,000 | 32,400 | 29,750 | 25,500 | 25,200 | 20,800 | 15,400 | 306,916 | GreenComfort (unit) | 16,960 | 16,530 | 22,680 | 25,200 | 22,500 | 27,900 | 25,200 | 21,250 | 21,250 | 22,500 | 17,600 | 14,000 | 253,570 |