Essay About Day Labor Cost And Sane Hires

Operations Management
Assembly Line 1 [pic 1]No of unitsper unit contributionDay contributionNo of WorkersRegular wagesOvertime wagesregular hoursovertime hourstotal costscenariohiring cost31530945071830801008Original 420301260091830801296Solution 112000420301260071830821428solution 20Solution 1- Mr. Sane hires 9 workers then no overtime work will be required and demand will be fulfilled.Involving cost of hiring 2 people =12000 rs. And low per day labor cost compared to any other solution available.Solution 2 – Mr. sane doesn’t hire any worker and incurs the highest cost of labor wages/day but no training cost. He may operate by using his workforce overtime until 91 days but if order continuous for more than 91 days then it’s appropriate to opt solution 1.