A small manufacturer of specialty welding equipment has developed a level production plan for the next four
Question:
A small manufacturer of specialty welding equipment has developed a level production plan for the next four quarters, as follows:
Bid/ask for information | Pre-Q1 | Q1 | Q2 | Q3 | Q4 |
forecast demand) | 4,600 | 4,600 | 3,680 | 6,440 | |
regular production | 4,830 | 4,830 | 4,830 | 4,830 | |
outsourced production | |||||
running out of inventory | |||||
contract employees | 12 | ||||
laid off employees | |||||
Total Employees | 30 | 42 | 42 | 42 | 42 |
Additional Information:
Capacity information and cost variables | |
Production rate (units/employee/quarter) | 115 |
Subcontractor capacity (units/quarter) | 480 |
Regular production cost/unit | $70 |
Maintenance cost/unit/quarter | $14 |
Hiring cost/employee | $980 |
Layoff cost/employee | $2,600 |
Subcontracting cost/unit | $105 |
What is the total overhead cost for this production plan? (Show your answer to the nearest whole number .)
What is the total regular production cost for this production plan? (Show your answer to the nearest whole number .)
What is the total holding cost for this production plan? (Show your answer to the nearest whole number .)
What is the total rental cost for this production plan? (Show your answer to the nearest whole number .)
What is the total cost of fires for this production plan? (Show your answer to the nearest whole number .)
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase