1). daily production ratern

2). total regular production cost?

3). total subcontracting cost?

4). Total cost ?
 

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A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). Table 1 Other data Avg Dem Per Prod. Day Inventory carrying cost Production Demand $8 per unit per month Month Days Forecast Subcontracting cost per unit $12 per unit Average pay rate Overtime pay Rate $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit 1 January 22 950 2 February 18 750 March 21 750 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) 4 April 21 1,000 5 May 22 1,300 6 June 20 1,050 $600 per unit A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). Table 1 Other data Avg Dem Per Prod. Day Inventory carrying cost Production Demand $8 per unit per month Month Days Forecast Subcontracting cost per unit $12 per unit Average pay rate Overtime pay Rate $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit 1 January 22 950 2 February 18 750 March 21 750 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) 4 April 21 1,000 5 May 22 1,300 6 June 20 1,050 $600 per unit

Answer rating: 100% (QA)

1 By dividing the number of products produced by the manhours involved you calculate the av... View the full answer