Question
Jupiter, a large candy company, is having great success with its Swan family of candy bars. Due to a number of factors they like to
Jupiter, a large candy company, is having great success with its "Swan" family of candy bars. Due to a number of factors they like to plan their production at least sixmonths into the future. The table below contains their demand projections (in tons) for April through September:
Supply/Demand Info Beginning Apr May Jun Jul Aug Sep
Predicted sales 2,925 3,425 4,675 4,025 2,150 4,825
Regular production
Overtime production
Subcontract production
Ending inventory 700
Hired employees
Fired employees
Total employees 70
Cost variables are as follows:
Cost Variables
Labor cost/hour $19
Overtime cost/ton $64
Subcontracting cost/ton $55
Holding cost/ton/month $9
Hiring cost/employee $1,000
Firing cost/employee $1,900
Here is someadditional relevant (capacity) information:
Capacity Information
Total labor hours/ton 3
Regular production tons/employee/month 25
Max regular production (tons/month) 2,600
Max overtime production (tons/month 1,000
Max subcontractor production (tons/month)2,125
What is thetotalREGULAR production cost(over the six months from April through September) for a chase production plan? (whole number.)
What is thetotal overtime productioncostfor this production plan? (whole number.)
What is thetotal subcontractcostfor this production plan? (whole number.)
What is thetotal holdingcostfor this production plan? (whole number.)
What is thetotal hirecostfor this production plan? (whole number.)
What is thetotal firecostfor this production plan? (whole number.)
What is thetotal cost(sum of all costs) for this production plan? (whole number.)
Step by Step Solution
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