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What would the subcontracting cost have to be increased to make the cost of Plan 2 be the same as Plan 3? Copy and paste
What would the subcontracting cost have to be increased to make the cost of Plan 2 be the same as Plan 3? Copy and paste the NEW Plan 3 table into the document (as a picture not an excel object).
Picture 3 fac N o R S T U V w A B D | E G 1 K L M Plan 3 - Hiring & Layoffs (Production rate for 1st month is equal to demand for 1st month and therefore no change in production rate from previous month) 1 2 3 Month Expected Demand Production Days Demand per Day Change in Production Rate 4 Jul 5 Aug 6 Sep 1200 1400 2500 2800 1600 1400 22 18 21 21 22 20 55 78 119 133 73 70 23 41 14 -60 Labor Cost to meet Increasing Production Decreasing Production monthly demand (Hiring Cost) (Layoff Cost) $ 47,520.00 $ 55,440.00 $ 11,500.00 $ 99,000.00 $ 20,500.00 $ 110,880.00 $ 7,000.00 $ 63,360.00 $ 60,000.00 $ 55,440.00 $ 3,000.00 w Z AA Costs: Plan 1 Plan 2 Plan 3 Regular Labor $432,115.20 $ 270,072.00 $ 431,640.00 Inventory Carrying $ 10,848.00 Overtime Labor Hiring $ 39,000.00 Layoffs $ 63,000.00 Subcontracting $ 204,000.00 Total cost $442,963.20 $ 474,072.00 $ 533,640.00 7 Oct 8 Nov Jun -3 9 10 11 12 13 14 15 16 Plan 2- Subcontracting in Constant Workforce (workforce level set at level to meet min demand; all demand met by subcontracting) 17 Production Days Demand per Day Subcontracted Units Subcontracting Cost Production Month @min. workforce 1210 990 22 1155 18 Month Expected Demand 19 Jul 1200 20 Aug 1400 21 Sep 2500 22 Oct 2800 23 Nov 1600 Jun Plot Area 1400 24 25 26 18 21 21 22 20 55 78 119 133 73 70 -10 410 1345 1645 390 300 $ $ $ $ $ $ (500.00) 20,500.00 67,250.00 82,250.00 19,500.00 15,000.00 1155 1210 1100 O 27 28 29 30 Picture 3 fac N o R S T U V w A B D | E G 1 K L M Plan 3 - Hiring & Layoffs (Production rate for 1st month is equal to demand for 1st month and therefore no change in production rate from previous month) 1 2 3 Month Expected Demand Production Days Demand per Day Change in Production Rate 4 Jul 5 Aug 6 Sep 1200 1400 2500 2800 1600 1400 22 18 21 21 22 20 55 78 119 133 73 70 23 41 14 -60 Labor Cost to meet Increasing Production Decreasing Production monthly demand (Hiring Cost) (Layoff Cost) $ 47,520.00 $ 55,440.00 $ 11,500.00 $ 99,000.00 $ 20,500.00 $ 110,880.00 $ 7,000.00 $ 63,360.00 $ 60,000.00 $ 55,440.00 $ 3,000.00 w Z AA Costs: Plan 1 Plan 2 Plan 3 Regular Labor $432,115.20 $ 270,072.00 $ 431,640.00 Inventory Carrying $ 10,848.00 Overtime Labor Hiring $ 39,000.00 Layoffs $ 63,000.00 Subcontracting $ 204,000.00 Total cost $442,963.20 $ 474,072.00 $ 533,640.00 7 Oct 8 Nov Jun -3 9 10 11 12 13 14 15 16 Plan 2- Subcontracting in Constant Workforce (workforce level set at level to meet min demand; all demand met by subcontracting) 17 Production Days Demand per Day Subcontracted Units Subcontracting Cost Production Month @min. workforce 1210 990 22 1155 18 Month Expected Demand 19 Jul 1200 20 Aug 1400 21 Sep 2500 22 Oct 2800 23 Nov 1600 Jun Plot Area 1400 24 25 26 18 21 21 22 20 55 78 119 133 73 70 -10 410 1345 1645 390 300 $ $ $ $ $ $ (500.00) 20,500.00 67,250.00 82,250.00 19,500.00 15,000.00 1155 1210 1100 O 27 28 29 30Step by Step Solution
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