Solution to Aggregate Planning Problem
Solution:
Computation of:
Revenue
Simple returns = (service fee, $50) x no. of simple returns demand Complex returns = (service fee, $200) x no. of complex returns demand Cost of permanent employees Payment for accountant = (regular rate, $600 per week) x no. of permanent accountant Payment for computer system = (per computer rate, $175 per week) x no. of accountants who access to the computerized system Total permanent costs = payment to accountant + payment for computer system Computation of number of accountants needed per week based on expected demand: Simple returns = total no. of expected demand for simple returns/no. of simple returns that an accountant can process. Complex returns = total no. of expected demand for complex returns/no. of complex returns an accountant can process No. of accountants to be hired = no. of accountant needed to meet expected demand – no. of permanent accountant Cost of Temporary Accountants: A. Number of temporary accountants (subtract five permanent accountants from the total) Hiring fees = no. of accountants temporarily hired x hiring rate, $200 Payment for Accountant =no. of accountants hired x pay rate for temporary accountant, $600 Computer System = no. of accountants hired x computer rate, $175 Total Temporary Cost = Hiring fees + payment for accountants + Computer system payment Total Cost = Total permanent costs + total temporary costs B. In this case, we do not need to round up the number of accountants to meet demand in each period Hiring fees = no. of accountants temporarily hired x hiring rate, $200 Payment for Accountant =no. of accountants hired x pay rate for temporary accountant, $600 Computer System = no. of accountants hired x computer rate, $175 Total Temporary Cost = Hiring fees + payment for
Computation of:
Revenue
Simple returns = (service fee, $50) x no. of simple returns demand Complex returns = (service fee, $200) x no. of complex returns demand Cost of permanent employees Payment for accountant = (regular rate, $600 per week) x no. of permanent accountant Payment for computer system = (per computer rate, $175 per week) x no. of accountants who access to the computerized system Total permanent costs = payment to accountant + payment for computer system Computation of number of accountants needed per week based on expected demand: Simple returns = total no. of expected demand for simple returns/no. of simple returns that an accountant can process. Complex returns = total no. of expected demand for complex returns/no. of complex returns an accountant can process No. of accountants to be hired = no. of accountant needed to meet expected demand – no. of permanent accountant Cost of Temporary Accountants: A. Number of temporary accountants (subtract five permanent accountants from the total) Hiring fees = no. of accountants temporarily hired x hiring rate, $200 Payment for Accountant =no. of accountants hired x pay rate for temporary accountant, $600 Computer System = no. of accountants hired x computer rate, $175 Total Temporary Cost = Hiring fees + payment for accountants + Computer system payment Total Cost = Total permanent costs + total temporary costs B. In this case, we do not need to round up the number of accountants to meet demand in each period Hiring fees = no. of accountants temporarily hired x hiring rate, $200 Payment for Accountant =no. of accountants hired x pay rate for temporary accountant, $600 Computer System = no. of accountants hired x computer rate, $175 Total Temporary Cost = Hiring fees + payment for