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Can you answer it? developed the following forecasts for demand in cases) A small distiller produces whisky. The salesperson tras for the next six months.
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developed the following forecasts for demand in cases) A small distiller produces whisky. The salesperson tras for the next six months. Sep Oct Month May Jun Jul Aug Forecast 4.000 4.800 5.600 7.200 6.400 5.000 Use the following information: Regular labour cost $20 per case Regular labour capacity 5,000 cases per month using 50 workers Overtime labour cost $30 per case Part-time labour cost $40 per case Holding cost $2 per case per month Back-order cost $10 per case per month Beginning inventory Develop the minimum cost production plan using level output/workforce, supplemented with each of the follow- ing, and compute the total cost for each plan. Which plan has lower total cost? a. Use overtime (up to 1,000 cases per month). (Hint: Use OT in a three-month period.) b. Use a combination of overtime (500 cases per month maximum) and part-time labour (500 cases per month maximum). (Hint: Use OT in a five-month period. supplemented with part-time production.) developed the following forecasts for demand in cases) A small distiller produces whisky. The salesperson tras for the next six months. Sep Oct Month May Jun Jul Aug Forecast 4.000 4.800 5.600 7.200 6.400 5.000 Use the following information: Regular labour cost $20 per case Regular labour capacity 5,000 cases per month using 50 workers Overtime labour cost $30 per case Part-time labour cost $40 per case Holding cost $2 per case per month Back-order cost $10 per case per month Beginning inventory Develop the minimum cost production plan using level output/workforce, supplemented with each of the follow- ing, and compute the total cost for each plan. Which plan has lower total cost? a. Use overtime (up to 1,000 cases per month). (Hint: Use OT in a three-month period.) b. Use a combination of overtime (500 cases per month maximum) and part-time labour (500 cases per month maximum). (Hint: Use OT in a five-month period. supplemented with part-time production.)Step by Step Solution
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