Question: a. Given the following forecast and steady regular output of 550 every month, what total cost would result if overtime is limited to a maximum

a. Given the following forecast and steady regular output of 550 every month, what total cost would result if overtime is limited to a maximum of 40 units a month, and subcontracting is limited to a maximum of 10 units a month? Unit costs are:

Regular output $ 20

Overtime $ 30

Subcontract $ 25

Average Inventory $ 10

Backlog $ 18

b. Suppose now that backlogs are not allowed. Modify your plan from part a to accommodate that new condition as economically as possible. The limits on overtime and subcontracting remain the same.

Month Forecast 540 540 570 590 600 580

Step by Step Solution

★★★★★

3.45 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Given Use regular output of 550 units per month Use a maximum of 40 units of overtime per month and a maximum of 10 units of subcontracting per month ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

372-B-M-L-O-M (3244).docx

120 KBs Word File

Students Have Also Explored These Related Management Leadership Questions!

The following table shows average Canadian gas prices, per litre, from 1979 to 2007. 1979 1983 1987 1991 0 4 8 12 1996 17 Year Years Since 1979 Price (C/L) 21.98 45.92 47.95 57.05 58.52 70.56 74.48...

Given the following forecast and cost information, determine the total cost of a plan that uses regular time production output of 600 units per month, overtime is used when needed up to a maximum of...

Given the following forecast and cost information, determine the total cost of a chase plan that uses regular time production output of 400 units per month, overtime is used when needed up to a...

I appreciate to know the procedure to get all needed information Question 2: Given the following forecast and steady regular output of 550 every month, what total cost would result if overtime is...

4. a. Given the following forecast and steady regular output of 550 every month, what total cost would result if overtime is limited to a maximum of 40 units a month, and subcontracting is lim- ited...

4. a. Given the following forecast and steady regular output of 550 every month, what total cost would result if owertime is limited to a maximum of 40 units a month, and subcontracting is limited to...

a . Given the following forecast and steady regular output of 5 5 0 every month, what total cost would result if overtime is limited to a maximum of 4 0 units a month, and subcontracting is limited...

a. Given the following forecasts and steady regular output of 550 every month, what total cost would result if overtime is limited to a maximum of 40 units a month, and subcontracting is limited to a...

Let S22 be the set of 2 Ã 2 symmetric matrices. Verify that the linear transformation R is invertible and find R-1. R(E)- =(a b) + (2a 3b 2c)a + (a b+ c)a? R: S2 + P2, R %3D

In a certain manufacturing process, the (Fahrenheit) temperature never varies by more than 2o from 62o. The temperature is, in fact, a random variable F with distribution (a) Find E (F) and V (F)....

5.24 A survey is planned to estimate the proportion of voters in a community who plan to vote for Candidate Y. Calculate the conservative margin of error, as a proportion and as a percentage, for...

The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals: A. * strategic planning B. tactical planning...

A niche bicycle manufacturer manufactures bicycles in two different sizes. David, the company's owner-manager, has just received the following forecasts for the next six months. a. Under what...

What is a time fence and why is it useful?

How is MPS for a process industry different?

2) Peter is a salesman for Kroner industries which specializes in making of natural gas furnaces. Peter has told you that your current furnace needs to be replaced and he offers the following...

Sims & Company is brainstorming on if it is a good idea to invest in a short-term installation project. The investment has the following projected cash flows seen below: Required Initial Investment...

Prepare a Cash Budget for the months of January to March 2019 6 Sales information for November and December of 2018 and Sales forcast for January to March of 2019 are as follows 8 November (2018)...