The picture with all of the numbers is just the background info, the question I need #6. I have seen it solved on here before but no one explains their calculations. They all use 25000 for the production but don't say how they got to that number. Please break it down step by step.

Thank you!

es and Operations Planning 4. On December 20 (the end of the fourth quarter), Ivar Jorgenson, head operations planner for Ski & Sea, Inc., is in charge of developing a sales and operations plan for the coming year. Ski & Sea assembles jet skis and snowmobiles from subassemblies and component parts provided by reliable vendors. Both products (end items) utilize the same small engines and many of the same parts. They require the same assembly time and employee labor skills. The available planning in- formation is as follows: Demand Forecasts Snowmobiles Quarter Jet Skis 1 2 3 10,000 15,000 16,000 3,000 9,000 7,000 19,000 10,000 4 Anticipated Quarter 1 600 skis 400 Snowmobiles Beginning inventory Production and costs Regular time $15.00 per unit Overtime $22.50 per unit Subcontract $30.00 per unit Part-time $36.00 per unit Inventory $3.00 per unit per quarter, based on average inventory during each quarter Back order $24.00 per unit per quarter (based on back orders at end of quarter) Hiring $300.00 per full-time employee (no cost if part-time) Layoff $1,500.00 per full-time employee (no cost if part-time) Production rates Regular 500 units per full-time employee per quarter (of either unit) Overtime (max.) 200 units per full-time employee per quarter (of either unit) Part-time 400 units per part-time employee per quarter (of either unit) Initial workforce size 44 full-time employees (beginning of quarter 1) dditional assumptions Part-time employees may not work overtime. Assume 100% utilization of employees on regular time (i.e., all employees on the payroll during a period produce at least 500 units). If overtime is used, up to another 200 units can be produced per employee. Develop an operations plan that utilizes a loul full time c. Another possibility would be to hire an additional full-time employee on January 2 and employ him/her for the full year. Calculate the total annual cost. 6. Susie Svensen, the VP of marketing at Ski & Sea, is not happy with having back orders in any sales and operations plan for the future. She asks Ivar to develop a plan that requires no back orders at any time during the year. The VP of manufacturing, Josef Jaeger, says he will insist that any such plan specify the same output each quarter and use full-time employees on a regular time only. The VP of finance, Thor Ledger, states that quarter 4 ending inventory need not be zero, but it should be as low as possible. a. Use the original forecasts, beginning inventory, and other data from problem 4. Develop a plan that will meet the requirement of all three VPs. (Hint: Examine the graphs you prepared for problem 4b. What slope is required for the output line to eliminate backlogs?) b. What will the ending inventory for quarter 4 be? 7. On December 22, Thor Ledger informs Ivar that the cost of capital will be extremely high next year. As a consequence he asks him to develop a radically different type of sales and operations ha atrotocond the data from problem 4 Ending inventory is to be zero at the be to hire an additional full-time employee on January 2 and employ him/her for the full year. Calculate the total annual cost. 6. Susie Svensen, the VP of marketing at Ski & Sea, is not happy with having back orders in any sales and operations plan for the future. She asks Ivar to develop a plan that requires no back orders at any time during the year. The VP of manufacturing, Josef Jaeger, says he will insist that any such plan specify the same output each quarter and use full-time employees on a regular time only. The VP of finance, Thor Ledger, states that quarter 4 ending inventory need not be zero, but it should be as low as possible. a. Use the original forecasts, beginning inventory, and other data from problem 4. Develop a plan that will meet the requirement of all three VPs. (Hint: Examine the graphs you prepared for problem 4b. What slope is required for the output line to eliminate backlogs?) b. What will the ending inventory for quarter 4 be? 7. On December 22, Thor Ledger informs Ivar that the cost of capital will be extremely high next year As a consequence he asks him to develop a radically different type of sales and operations es and Operations Planning 4. On December 20 (the end of the fourth quarter), Ivar Jorgenson, head operations planner for Ski & Sea, Inc., is in charge of developing a sales and operations plan for the coming year. Ski & Sea assembles jet skis and snowmobiles from subassemblies and component parts provided by reliable vendors. Both products (end items) utilize the same small engines and many of the same parts. They require the same assembly time and employee labor skills. The available planning in- formation is as follows: Demand Forecasts Snowmobiles Quarter Jet Skis 1 2 3 10,000 15,000 16,000 3,000 9,000 7,000 19,000 10,000 4 Anticipated Quarter 1 600 skis 400 Snowmobiles Beginning inventory Production and costs Regular time $15.00 per unit Overtime $22.50 per unit Subcontract $30.00 per unit Part-time $36.00 per unit Inventory $3.00 per unit per quarter, based on average inventory during each quarter Back order $24.00 per unit per quarter (based on back orders at end of quarter) Hiring $300.00 per full-time employee (no cost if part-time) Layoff $1,500.00 per full-time employee (no cost if part-time) Production rates Regular 500 units per full-time employee per quarter (of either unit) Overtime (max.) 200 units per full-time employee per quarter (of either unit) Part-time 400 units per part-time employee per quarter (of either unit) Initial workforce size 44 full-time employees (beginning of quarter 1) dditional assumptions Part-time employees may not work overtime. Assume 100% utilization of employees on regular time (i.e., all employees on the payroll during a period produce at least 500 units). If overtime is used, up to another 200 units can be produced per employee. Develop an operations plan that utilizes a loul full time c. Another possibility would be to hire an additional full-time employee on January 2 and employ him/her for the full year. Calculate the total annual cost. 6. Susie Svensen, the VP of marketing at Ski & Sea, is not happy with having back orders in any sales and operations plan for the future. She asks Ivar to develop a plan that requires no back orders at any time during the year. The VP of manufacturing, Josef Jaeger, says he will insist that any such plan specify the same output each quarter and use full-time employees on a regular time only. The VP of finance, Thor Ledger, states that quarter 4 ending inventory need not be zero, but it should be as low as possible. a. Use the original forecasts, beginning inventory, and other data from problem 4. Develop a plan that will meet the requirement of all three VPs. (Hint: Examine the graphs you prepared for problem 4b. What slope is required for the output line to eliminate backlogs?) b. What will the ending inventory for quarter 4 be? 7. On December 22, Thor Ledger informs Ivar that the cost of capital will be extremely high next year. As a consequence he asks him to develop a radically different type of sales and operations ha atrotocond the data from problem 4 Ending inventory is to be zero at the be to hire an additional full-time employee on January 2 and employ him/her for the full year. Calculate the total annual cost. 6. Susie Svensen, the VP of marketing at Ski & Sea, is not happy with having back orders in any sales and operations plan for the future. She asks Ivar to develop a plan that requires no back orders at any time during the year. The VP of manufacturing, Josef Jaeger, says he will insist that any such plan specify the same output each quarter and use full-time employees on a regular time only. The VP of finance, Thor Ledger, states that quarter 4 ending inventory need not be zero, but it should be as low as possible. a. Use the original forecasts, beginning inventory, and other data from problem 4. Develop a plan that will meet the requirement of all three VPs. (Hint: Examine the graphs you prepared for problem 4b. What slope is required for the output line to eliminate backlogs?) b. What will the ending inventory for quarter 4 be? 7. On December 22, Thor Ledger informs Ivar that the cost of capital will be extremely high next year As a consequence he asks him to develop a radically different type of sales and operations