Question
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
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 | 49,100 | 48,200 | 59,700 | 48,700 | 50,200 | 62,800 | |
Regular production | |||||||
Overtime production | |||||||
Subcontract production | |||||||
Ending inventory | 12,100 | ||||||
Hired employees | |||||||
Fired employees | |||||||
Total employees | 470 |
Cost variables are as follows:
Cost Variables | |
Labor cost/hour | $15 |
Overtime cost/ton | $33 |
Subcontracting cost/ton | $28 |
Holding cost/ton/month | $12 |
Hiring cost/employee | $2,800 |
Firing cost/employee | $5,600 |
Here is someadditional relevant (capacity) information:
Capacity Information | |
Total labor hours/ton | 3 |
Regular production tons/employee/month | 100 |
Max regular production (tons/month) | 51,500 |
Max overtime production (tons/month) | 3,000 |
Max subcontractor production (tons/month) | 4,300 |
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? (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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