Meridian Pumps Case 1
Prof : Anil Dean
Group Assignment - (Group No -13
Member 1 - Karmanjot Singh - 30135
Member 2 - Rohan Malhotra - 30141
Member 3 - Soumya Priyadarshini - 301
19 Marks / 30 Marks
Opening Stock 200 units
Closing Stock 650 units
Hiring Costs $ 1,000.00 per worker
Firing Costs $ 1,800.00 per worker
Inhouse Production costs $ 70.00 per unit
Subcontract Production costs $ 100.00 per unit
Backorder Costs $ 120.00 per unit
Inventory Holding costs $ 18.00 per unit /month
Production capacity 20.00 per month / employee
Month -1 1
Forecast Demand 2080
Opening Stock
Production Monthly
Closing Stock Formula
Backorder
Employees Required
Production Change Costs
Hiring
Firing
Hiring Costs
Firing Costs
Inventory Costs
Backorder costs
In-house Production Costs
Total Costs
2 3 4 5 6
2700 3700 3240 2650 2340
TOTAL
16710
Opening Stock 200 units
Closing Stock 650 units
Hiring Costs $ 1,000.00 per worker
Firing Costs $ 1,800.00 per worker
Inhouse Production costs $ 70.00 per unit
Subcontract Production co$ 100.00 per unit
Backorder Costs $ 120.00 per unit
Inventory Holding costs $ 18.00 per unit /month
Production capacity 20.00 per month / employee
Month -1 1 2
Forecast Demand 2080 2700
Opening Stock 200 980
Production Monthly 2860 2860
Closing Stock Formula 980 1140
Backorder
Employees Required 90 143 143
Production Change Costs
Hiring 53 0
Firing
Hiring Costs $ 53,000.00 $ -
Firing Costs $ - $ -
Inventory Costs $ 17,640.00 $ 20,520.00
Backorder costs $ - $ -
In-house Production Costs $ 200,200.00 $ 200,200.00
Total Costs
Sample Calculations Period 1? -1 Mark
9 Marks / 10 Marks
3 4 5 6
3700 3240 2650 2340
1140 300 0 130
2860 2860 2860 2860
300 0 130 650
80
143 143 143 143
0 0 0 0
$ - $ - $ - $ -
$ - $ - $ - $ -
$ 5,400.00 $ - $ 2,340.00 $ 11,700.00
$ - $ 9,600.00 $ - $ -
$ 200,200.00 $ 200,200.00 $ 200,200.00 $ 200,200.00
TOTAL
16710
current workers 90
o/s+p-d=c/s
200+p-d=c/s
$ 53,000.00 p=650+16510
$ - p=17160
$ 57,600.00
$ 9,600.00 period production 17160/6 2860
$ 1,201,200.00
$ 1,321,400.00
Opening Stock 200 units
Closing Stock 650 units
Hiring Costs $ 1,000.00 per worker
Firing Costs $ 1,800.00 per worker
Inhouse Production costs $ 70.00 per unit
Subcontract Production costs $ 100.00 per unit
Backorder Costs $ 120.00 per unit
Inventory Holding costs $ 18.00 per unit /month
Production capacity 20.00 per month / employee
Month -1 1
Forecast Demand 2080
Opening Stock 200
Production Monthly 2080
Closing Stock Formula 200
Backorder 0
Employees Required 90 104
Production Change Costs
Hiring 14
Firing
Hiring Costs $ 14,000.00
Firing Costs
Inventory Costs $ 3,600.00
Backorder costs $ -
In-house Production Costs $ 145,600.00
Total Costs
Sample Calculations Period 1? -1 Mark
9 Marks / 10 Marks
2660
2 3 4 5
2700 3700 3240 2650
200 200 200 200
2700 3700 3240 2650
200 200 200 200
0 0 0 0
135 185 162 133
31 50 -23 -29
23 29
$ 31,000.00 $ 50,000.00
$ 41,400.00 $ 52,200.00
$ 3,600.00 $ 3,600.00 $ 3,600.00 $ 3,600.00
$ - $ - $ - $ -
$ 189,000.00 $ 259,000.00 $ 226,800.00 $ 185,500.00
2800
6 TOTAL
2340 16710
200
2790 17160
650
0
140
$ 7,000.00 $ 102,000.00
$ 93,600.00
$ 11,700.00 $ 29,700.00
$ - $ -
$ 195,300.00 $ 1,201,200.00
$ 1,426,500.00
Opening Stock 200 units
Closing Stock 650 units
Hiring Costs $ 1,000.00 per worker
Firing Costs $ 1,800.00 per worker
Inhouse Production costs $ 70.00 per unit
Subcontract Production costs $ 100.00 per unit
Backorder Costs $ 120.00 per unit
Inventory Holding costs $ 18.00 per unit /month
Production capacity 20.00 per month / employee
Month -1 1 2
Forecast Demand 2080 2700
Opening Stock 200 200
Production Monthly Highlighted data is 2080 2080
Closing Stock Formula entered manually no 200 200
justification for how
Subcontract Production the numbers are 0 620
Backorder obtained. 0 0
Employees Required 90 104 104
Production Change Costs $ - $ -
Hiring 104-90=14 0
Firing
Hiring Costs 14*1000=14000 $ -
Firing Costs 0 0
Inventory Costs $ 3,600.00 $ 3,600.00
Backorder costs $ - $ -
In-house Production Costs $ 145,600.00 $ 145,600.00
Subcontract Production costs $ - $ 62,000.00
Total Costs
Sample Calculations Period 1? -1 Mark
4 Marks / 10 Marks
3 4 5 6
3700 3240 2650 2340
200 200 200 200
2080 2080 2080 2080
200 200 200 650
1620 1160 570 710
0 0 0 0
104 104 104 104
$ - $ - $ - $ -
0 0 0 0
$ - $ - $ - $ -
0 0 0 0
$ 3,600.00 $ 3,600.00 $ 3,600.00 $ 11,700.00
$ - $ - $ - $ -
$ 145,600.00 $ 145,600.00 $ 145,600.00 $ 145,600.00
$ 162,000.00 $ 116,000.00 $ 57,000.00 $ 71,000.00
TOTAL
16710
12480
how?
how?
$ 14,000.00
$ 29,700.00
$ 873,600.00
$ 468,000.00
$ 1,385,300.00
Level Startergy is good, cause it cost Less.
