Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PP . 5 2 A manufacturer of solid state drives ( SSDs ) has projected the next six months of demand to be as shown
PP A manufacturer of solid state drives SSDs has projected the next six months of demand to be as shown the table below:
SupplyDemand Info Beginning Jan Feb Mar Apr May Jun
Forecast demand
Regular production
Overtime production
Subcontract production
Ending inventory
Hired employees
Fired employees
Total employees
Cost variables are as follows:
Cost Variables
Labor costhour $
Overtime costunit $
Subcontracting costunit $
Holding costunitmonth $
Hiring costemployee $
Firing costemployee $
Here is some additional relevant capacity information:
Capacity Information
Total labor hoursSSD
Regular production unitsemployeemonth
Max regular productionmonth
Max overtime productionmonth
Max subcontractor productionmonth
Assuming the company uses regular production first Hire and Fire then overtime andor subcontract production, answer the following questions:
What is the regular production cost over the six months from January through June for a CHASE production plan? Display your answer to the nearest whole number.
What is the total overtime production cost for this production plan? Display your answer to the nearest whole number.
Number
What is the total subcontract cost for this production plan? Display your answer to the nearest whole number.
Number
What is the total holding cost for this production plan? Display your answer to the nearest whole number.
What is the total hire cost for this production plan? Display your answer to the nearest whole number.
Number
What is the total fire cost for this production plan? Display your answer to the nearest whole number.
Number
What is the total cost sum of all costs for this production plan? Display your answer to the nearest whole number.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started