Question
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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