Question: please answer a through d. thank you For the past 5 years, Archer's Burgers has produced frozen vegan burger patties via a combination of in-house

please answer a through d. thank you

please answer a through d. thank you For the past 5 years,

For the past 5 years, Archer's Burgers has produced frozen vegan burger patties via a combination of in-house manufacturing and subcontracting. Their 'historical plan' has always been to hold staffing steady in the first half of the year and make 560 cases per month via regular time production at a cost of $65 per case. Previous Output is 400. Back-orders are not acceptable to their customers. When utilized, the subcontractor, normally a direct competitor, charges Archer's $85 per case. There is no beginning inventory. The cost of increasing or decreasing capacity (hiring/layoff) is $5 per unit. Inventory holding costs $10 per case. Cost of lost sales is $35. Looking ahead, the operations manager forecasts demand of: Jan Feb March April May June 400 700 600 780 400 700 a. What would the costs be to continue to follow the 'historical plan'? [ Select ] The operations manager is considering a second plan. In this scenario, the plant will increase regular time production to 600 units per month for the first 3 months (January-March), then drop to 550 units for the last three months. b. What is the cost of the second plan? [ Select ] The final plan (which includes all costs and demands mentioned so far) would be to produce 530 units per month regular time, and out-source (subcontract) only when necessary to avoid any lost sales. c. What is the cost of plan 3? $243,950 d. Based on costs, which plan should be chosen? [ Select ]

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