Question
PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below: Supply/Demand Info
PP.52 A 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) | 64,200 | 61,400 | 46,200 | 50,200 | 58,800 | 62,600 | |
Regular production | |||||||
Overtime production | |||||||
Subcontract production | |||||||
Ending inventory | 6,000 | ||||||
Hired employees | |||||||
Fired employees | |||||||
Total employees | 150 |
Cost variables are as follows:
Cost Variables | |
Labor cost/hour | $18 |
Overtime cost/unit | $30 |
Subcontracting cost/unit | $27 |
Holding cost/unit/month | $7 |
Hiring cost/employee | $3,200 |
Firing cost/employee | $5,200 |
Here is some additional relevant (capacity) information:
Capacity Information | |
Total labor hours/SSD | 4 |
Regular production units/employee/month | 200 |
Max regular production/month | 55,600 |
Max overtime production/month | 3,400 |
Max subcontractor production/month | 5,800 |
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? (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.) What is the total subcontract cost for this production plan? (Display your answer to the nearest whole 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.) What is the total fire cost for this production plan? (Display your answer to the nearest whole number.) What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.)
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