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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: 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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