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PP.51A small manufacturer of specialty welding equipment has developed a chase production plan for the next four quarters, as seen below: Supply/Demand Info Pre-Q1 Q1

PP.51A small manufacturer of specialty welding equipment has developed a chase production plan for the next four quarters, as seen below:

Supply/Demand Info Pre-Q1 Q1 Q2 Q3 Q4
Forecast (demand) 3,240 3,600 4,080 3,480
Regular production 3,240 3,600 4,080 3,480
Subcontract production
Ending inventory
Hired employees 3 4
Fired employees 3 5
Total employees 30 27 30 34 29

The table below shows additional relevant information:

CapacityInformation & Cost Variables
Production rate (units/employee/quarter) 120
Subcontractor capacity (units/quarter) 480
Regular production cost/unit $71
Holding cost/unit/quarter $15
Hiring cost/employee $1,020
Firing cost/employee $2,150
Subcontract cost/unit $128

What is the overall total cost for this production plan? (Displayyour answer to the nearest whole number.) What is the total regular productioncost for this production plan? (Displayyour answer to the nearest whole number.) What is the total holdingcost for this production plan? (Displayyour answer to the nearest whole number.) What is the total hirecost for this production plan? (Displayyour answer to the nearest whole number.) What is the total firecost for this production plan? (Displayyour answer to the nearest whole number.)

PP.52A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below:

Supply/Demand Info Beginning Jan Feb Mar Apr May Jun
Forecast (demand) 48,600 59,200 48,000 52,000 54,800 48,800
Regular production
Overtime production
Subcontract production
Ending inventory 4,200
Hired employees
Fired employees
Total employees 220

Cost variables are as follows:

Cost Variables
Labor cost/hour $20
Overtime cost/unit $40
Subcontracting cost/unit $32
Holding cost/unit/month $12
Hiring cost/employee $3,200
Firing cost/employee $4,900

Here is someadditional relevant (capacity) information:

Capacity Information
Total labor hours/SSD 2
Regular production units/employee/month 200
Max regular production/month 53,000
Max overtime production/month 3,200
Max subcontractor production/month 6,000

Assuming the company ONLY uses overtime and/or subcontract production if regular production capacity is not sufficient, answer the following questions: What is the regular production cost(over the six months from January through June) for a CHASE production plan? (Displayyour answer to the nearest whole number.) What is the total overtime productioncost for this production plan? (Displayyour answer to the nearest whole number.) What is the total subcontractcost for this production plan? (Displayyour answer to the nearest whole number.) What is the total holdingcost for this production plan? (Displayyour answer to the nearest whole number.) What is the total hirecost for this production plan? (Displayyour answer to the nearest whole number.) What is the total firecost for this production plan? (Displayyour answer to the nearest whole number.) What is the total cost(sum of all costs) for this production plan? (Displayyour answer to the nearest whole number.)

PP.61A small manufacturer of specialty welding equipment has developed a levelproduction plan for the next four quarters. Note, however, that this plan is incomplete and requires that you first compute the ending inventory for each quarter (and assume there is no Pre-Q1 ending inventory) before you answer the questions below.

Supply/Demand Info Pre-Q1 Q1 Q2 Q3 Q4
Forecast (demand) 4,140 3,220 2,760 6,440
Regular production 4,140 4,140 4,140 4,140
Subcontract production
Ending inventory
Hired employees 6
Fired employees
Total employees 30 36 36 36 36

The table below shows additional relevant information:

CapacityInformation & Cost Variables
Production rate (units/employee/quarter) 115
Subcontractor capacity (units/quarter) 490
Regular production cost/unit $66
Holding cost/unit/quarter $10
Hiring cost/employee $820
Firing cost/employee $2,850
Subcontract cost/unit $117

What is the overall total cost for this production plan? (Displayyour answer to the nearest whole number.) What is the total regular productioncost for this production plan? (Displayyour answer to the nearest whole number.) What is the total holdingcost for this production plan? (Displayyour answer to the nearest whole number.) What is the total hirecost for this production plan? (Displayyour answer to the nearest whole number.) What is the total firecost for this production plan? (Displayyour answer to the nearest whole number.)

PP.63 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 six months 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 46,400 45,600 48,000 55,200 52,000 55,600
Regular production
Overtime production
Subcontract production
Ending inventory 8,200
Hired employees
Fired employees
Total employees 481

Cost variables are as follows:

Cost Variables
Labor cost/hour $20
Overtime cost/ton $29
Subcontracting cost/ton $21
Holding cost/ton/month $10
Hiring cost/employee $2,500
Firing cost/employee $5,000

Here is someadditional relevant (capacity) information:

Capacity Information
Total labor hours/ton 4
Regular production tons/employee/month 100
Max regular production (tons/month) 51,100
Max overtime production (tons/month) 3,700
Max subcontractor production (tons/month) 5,300

Given the above information (and don't overlook beginning number of employees and inventory levels in the first table), create a LEVEL production plan with only the use of regular production and no inventory left over at the end of the six-month period. What is the regular production cost(over the six months from April through September) for a levelproduction plan? (Displayanswer to the nearest whole number.) What is the total overtime productioncost for this production plan? (Display answer to the nearest whole number.) What is the total subcontractcost for this production plan? (Displayanswer to the nearest whole number.) What is the total holdingcost for this production plan? (Displayyour answer to the nearest whole number.) What is the total hirecost for this production plan? (Display answer to the nearest whole number.) What is the total firecost for this production plan? (Display answer to the nearest whole number.) What is the total cost(sum of all costs) for this production plan? (Displayyour answer to the nearest whole number.)

PP.71A small manufacturer of specialty welding equipment has developed a combinationproduction plan for the next four quarters, as seen below:

Supply/Demand Info Pre-Q1 Q1 Q2 Q3 Q4
Forecast (demand) 6,885 7,830 7,830 7,560
Regular production 6,885 7,560 7,560 7,560
Subcontract production 405 135
Ending inventory 135
Hired employees 2 5
Fired employees
Total employees 49 51 56 56 56

The table below shows additional relevant information:

CapacityInformation & Cost Variables
Production rate (units/employee/quarter) 135
Subcontractor capacity (units/quarter) 460
Regular production cost/unit $79
Holding cost/unit/quarter $11
Hiring cost/employee $700
Firing cost/employee $2,250
Subcontract cost/unit $119

What is the overall total cost for this production plan? (Displayyour answer to the nearest whole number.) What is the total subcontract cost for this production plan? (Displayyour answer to the nearest whole number.) What is the total holdingcost for this production plan? (Displayyour answer to the nearest whole number.) What is the total hirecost for this production plan? (Displayyour answer to the nearest whole number.) What is the total firecost for this production plan? (Displayyour answer to the nearest whole number.)

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