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PLEASE HELP SOLVE STEP BY STEP A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the
PLEASE HELP SOLVE STEP BY STEP
A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. Table 1 Other data Production Demand Inventory carrying cost $5 per unit per month Month Days Forecast Subcontracting cost per unit $10 per unit 1 January 22 950 Average pay rate $5 per hour ($40 per day) 2 February 18 750 Overtime pay Rate $7 per hour (above 8 hrs per 3 March 21 750 day) 4 April 21 1,000 Labor-hours per unit 1.6 hrs per unit 5 May 22 1,300 Cost of increasing daily $300 per unit 6 June 1,050 production rate (hiring & training) Cost of decreasing daily $600 per unit production rate (layoffs) 20 This exercise only contains part b. b) Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan The production rate per day units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) Fill in the table below. (Enter your responses as whole numbers.) Regular Production Subcontract (Units) Month 1 January 2 February 3 March 4 April 5 May 6 June Demand 950 750 750 1,000 1,300 1,050 The total regular production cost = $ (Enter your response as a whole number.) The total subcontracting cost = $ (Enter your response as a whole number.) Total cost with plan 6 = $ (Enter your response as a whole number.) Enter your answer in each of the answer boxesStep by Step Solution
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