Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A solid-state drive (SSD) manufacturer projected that demand for the next six months will be as shown in the following table: Supply/demand information Beginning Ene

A solid-state drive (SSD) manufacturer projected that demand for the next six months will be as shown in the following table:

Supply/demand informationBeginningEneFebMarAbrCanJun
Expected demand)
48,00052,00060.00054.00058,00064.000
Regular production






Overtime production






Subcontracted production






Finishing inventory6,000





hired employees






laid off employees






Total Employees200






Cost variables as follows:

Cost variables
Cost of labour/hour$15
Cost per unit of overtime$36
Outsourcing cost/unit$32
Maintenance cost/unit/month$10
Hiring cost/employee$3,000
Dismissal cost/employee$5,000


Here is additional relevant information (capacity):

Capacity information
Total Labor Hours/SSD2
Regular production units/employee/month200
Max regular production/month56,000
Maximum production of overtime/month4,000
Maximum subcontractor production/month5,000


Given the information above (and don't overlook the initial number of employees and inventory levels in the first table), create a chase production plan (zero leftover inventory each month) with the lowest possible total cost, making sure to use as much regular production as possible.

What is the regular production cost (during the six months from January to June) for a chase production plan?



What is the total production cost of overtime for this production plan?



What is the total subcontract cost for this production plan?



What is the total maintenance cost for this production plan? 



What is the total rental cost for this production plan? 



What is the total fire cost for this production plan? 



What is the total cost (sum of all costs) for this production plan? 

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To create a chase production plan with the lowest possible total cost we need to match the production to the demand while minimizing the use of overtime subcontracting and other costs Heres the stepby... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Decision Making and Control

Authors: Jerold Zimmerman

9th edition

125956455X, 978-1259564550

More Books

Students also viewed these General Management questions

Question

Outline the contributions of Socrates to psychology.

Answered: 1 week ago

Question

=+b. What is Pd(2c ) when 5 4?

Answered: 1 week ago