A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below:

Supply/Demand Info	Beginning	Jan	Feb	Mar	Apr	May	Jun
Forecast (demand)		48,000	52,000	60,000	54,000	58,000	64,000
Regular production
Overtime production
Subcontract production
Ending inventory	6,000
Hired employees
Fired employees
Total employees	200

Cost variables as as follows:

Cost Variables
Labor cost/hour	$13
Overtime cost/unit	$34
Subcontracting cost/unit	$29
Holding cost/unit/month	$9
Hiring cost/employee	$2,600
Firing cost/employee	$4,600

Here is some additional relevant (capacity) information:

Capacity Information
Total labor hours/SSD	2
Regular production units/employee/month	200
Max regular production/month	56,000
Max overtime production/month	4,000
Max subcontractor production/month	5,000

Given the above information (and don't overlook beginning number of employees and inventory levels in the first table), create a level production plan with only the use of regular production and no inventory left over at the end of the six-month period.

What is the regular production cost (over the six months from January through June) for a level production plan? (Display your answer to the nearest whole number.)

What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.)

What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.)

What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)

What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)

What is the total fire cost for this production plan? (Display your answer to the nearest whole number.)

What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.)

Answer rating: 100% (QA)

E F G Beginning Jan 48000 Feb 52000 C9SC13D9C13 E9C13 Mar 60000 Apr 5400... View the full answer