Question: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additional units at a $70 per unit

Plan A: Produce at a steady rate (equal to

Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additional units at a $70 per unit premium cost. Subcontracting capacity is limited to 500 units per month. (Enter all responses as whole numbers). Demand 1200 Production 1,200 Ending Inventory 0 Subcontract (Units) 0 Month 1 July 2 August 3 September 4 October 1300 0 100 1200 0 0 1700 1,200 1,200 1,200 1,200 1,200 0 500 5 November 1650 0 450 6 December 1650 0 450 The total cost, excluding normal time labor costs, for Plan A = $ 105,000. (Enter your response as a whole number.) Plan B: Vary the workforce to produce the prior month's demand. The firm produced 1,300 units in June. The cost of hiring additional workers is $35 per unit produced. The cost of layoffs is $60 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1200 in August requires a layoff (and related costs) of 100 units in August). Hire (Units) Layoff (Units) Ending Inventory Stockouts (Units) Production Demand 1200 Month 1 July 2 August 3 September 4 October 1300 1200 1700 1650 5 November 6 December 1650

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