1) Quantity expected to be sold in quarter = 2,160 + 1,800 + 2,240 = 6,200 units
Quantity to be produced in quarter = 6,200 - 300 + 100 = 6,000 units
Monthly production program = 6,000 / 3 = 2,000 units
Finished products
+ Production
- Sales
= Result
January
300
2000
2160
140
February
140
2000
1800
340
March
340
2000
2240
100
We see that there would be no shortage of stock and even that we should in principle never
go below the safety stock.
The planned production schedule requires 2000 x 3/4h = 1500 hours per month.
The current monthly capacity being 12 workers x 130h = 1560h, it would not be necessary to
subcontracting.
2) .
Sales
+ Safety Stock
- Finished products
= Production
Hours needed
January
2160
100
300
1960
1470
February
1800
100
100
1800
1350
March
2240
100
100
2240
1680
1560 hours would be exceeded by 120h in March. These 120 hours
corresponds to the manufacture of 160 units of the product (=120h /0.75h), which should be
entrusted to the
subcontractor for a cost representing 2400 € (= 160 units x 15 €).