If the aggregate production strategy is to maintain a constant workforce that supports the lowest demand month
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Question:
If the aggregate production strategy is to maintain a constant workforce that supports the lowest demand month and use subcontraction to support higher levels of demand, use the data in the table below to determine: |
A. The Average Daily Demand from July thru December |
B. How many workers will be required to produce at the lowest daily demand rate? Each worker works 8 hours per day and makes $10.00 per hour. |
C. The total Subcontracting cost for each month. |
D. The total incurred labor cost per month. |
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Month | Expected Demand | Production Days | Demand Per Day (computed) |
Jul | 817 | 19 | 43 |
Aug | 720 | 18 | 40 |
Sep | 924 | 22 | 42 |
Oct | 1,323 | 21 | 63 |
Nov | 1,596 | 21 | 76 |
Dec | 1,800 | 20 | 90 |
7,180 | 121 | ||
Subcontracting cost per unit: | $20.00 | ||
Labor Hours to Produce a Unit: | 2.0 |
Posted Date: