Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data

Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day. You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Mr. Chua that you can do a better job at aggregate planning than his current staff. He said. "Fine. You do that, and you have a 1-year contract. To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Costs Holding cost Subcontracting Other data Current workforce (June) Labor-hours disk drive Workdays/month 8 people 4 hours 20 days 150 disk drives Regular-time labor Overtime labor Hiring cost Layoff cost $9/disk drive/Month $80/disk drive $12 $18/hour (above 8 hours) $40 worker $80 worker Beginning Inventory Ending Inventory O disk drives "Note that there is no holding cost for June. Fill in the table below (Enter all responses as whole numbers. In the hirefire column, use positive numbers for hires-plus signs omitted negative numbers for layoffs.) Beginning Units Month Demand Inventory Produced Personnel on Hire/ Ending Staff Layoff Inventory 0 June 150 1 July 400 2 August 480 3 September 450 4 October 650 5 November 750 6 December 720

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Students also viewed these Accounting questions