Question
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
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) | 55,000 | 45,800 | 62,200 | 45,000 | 59,400 | 55,000 | |
Regular production | |||||||
Overtime production | |||||||
Subcontract production | |||||||
Ending inventory | 7,200 | ||||||
Hired employees | |||||||
Fired employees | |||||||
Total employees | 180 |
Cost variables are as follows:
Cost Variables | |
Labor cost/hour | $18 |
Overtime cost/unit | $39 |
Subcontracting cost/unit | $35 |
Holding cost/unit/month | $13 |
Hiring cost/employee | $2,500 |
Firing cost/employee | $5,100 |
Here is someadditional relevant (capacity) information:
Capacity Information | |
Total labor hours/SSD | 4 |
Regular production units/employee/month | 200 |
Max regular production/month | 57,600 |
Max overtime production/month | 4,400 |
Max subcontractor production/month | 4,200 |
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.)
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