A solid-state drive (SSD) manufacturer projected that demand for the next six months will be as shown in the following table:

Supply/demand information	Beginning	Ene	Feb	Mar	Abr	Can	Jun
Expected demand)		48,000	52,000	60.000	54.000	58,000	64.000
Regular production
Overtime production
Subcontracted production
Finishing inventory	6,000
hired employees
laid off employees
Total Employees	200

Cost variables as follows:

Cost variables
Cost of labour/hour	$15
Cost per unit of overtime	$36
Outsourcing cost/unit	$32
Maintenance cost/unit/month	$10
Hiring cost/employee	$3,000
Dismissal cost/employee	$5,000

Here is additional relevant information (capacity):

Capacity information
Total Labor Hours/SSD	2
Regular production units/employee/month	200
Max regular production/month	56,000
Maximum production of overtime/month	4,000
Maximum subcontractor production/month	5,000

Given the information above (and don't overlook the initial number of employees and inventory levels in the first table), create a chase production plan (zero leftover inventory each month) with the lowest possible total cost, making sure to use as much regular production as possible.

What is the regular production cost (during the six months from January to June) for a chase production plan?

What is the total production cost of overtime for this production plan?

What is the total subcontract cost for this production plan?

What is the total maintenance cost for this production plan? 

What is the total rental cost for this production plan? 

What is the total fire cost for this production plan? 

What is the total cost (sum of all costs) for this production plan? 

Answer rating: 100% (QA)

To create a chase production plan with the lowest possible total cost we need to match the production to the demand while minimizing the use of overtime subcontracting and other costs Heres the stepby... View the full answer