Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management A Competitive Advantage Approach Concepts

Authors: Fred R. David, Forest R. David

15th edition

978-0133444896, 133444791, 9780133444858, 133444899, 133444856, 978-0133444797

More Books

Students also viewed these General Management questions

Question

15. What are the four steps in taking a physical inventory?

Answered: 1 week ago