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Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters.
Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters. The number of available days of production and the anticipated demand are given below.
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Demand
They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below.
Employees
Hire Cost $employee
Production Rate unitsemployeequarter Fire Cost $employee
Production Cost $unit Subcontracting Cost $unit
Backorder Cost $unitquarter Subcontracting Limit units maximum
Overtime Cost $unit Inventory Cost $unitquarter
Overtime Limit of Reg. Production Initial Inventory units
Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with inventory and backorders as needed. What is the total cost of this plan?
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