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PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below: Beginning
PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below: Beginning Jan Feb Mar Apr May 62,600 61,200 59,200 64,600 62,200 Jun 47,600 Supply/Demand Info Forecast (demand) Regular production Overtime production Subcontract production Ending inventory 7,800 Hired employees Fired employees Total employees 210 Cost variables are as follows: Cost Variables Labor cost/hour $19 Overtime cost/unit $39 Subcontracting cost/unit $32 Holding cost/unit/month $10 Hiring cost/employee $3,400 Firing cost/employee $5,700 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/SSD 3 Regular production units/employee/month 200 Max regular production/month 57,200 Max overtime production/month 3,200 Max subcontractor production/month 5,000 Assuming the company ONLY uses overtime and/or subcontract production if regular production capacity is not sufficient, answer the following questions:
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