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Question 1 (34 points) Q1: Nighthawk Industries Inc. manufactures outdoor clothing apparel. They have developed a forecast for their blue jeans line. They have hired you to help them develop their production schedule for the next six months. Employees work eight-hour shift. This means each employee works eight hours a day. Additional supply needed to meet demand will be outsourced. Please use the information below to develop the production schedule and answer the questions below. Full time employee 10 employees Hourly pay rate (8hrs) $ 15 Labor-hours per unit 1 hour per unit Inventory carrying cost $ 10.00 Subcontracting Cost (Outsource cost) $20 per unit . . . . (G) Month (A) Demand Forecast (Units) (B) Production Days Per Month (D) Monthly Production (Units) (E) Subcontracting Production (Units) Monthly Inventory Change (Units) Ending Inventory (Units) Production Rate Per Day 80 January 5.000 31 (A) Demand Forecast (Units) (B) Production Days Per Month (D) Monthly Production (Units) Month (E) Subcontracting Production (Units) Monthly Inventory Change (Units) (G) Ending Inventory (Units) Production Rate Per Day = 80 January February March April 5.000 4.500 5,050 4.750 5,100 6,000 30,400 31 28 31 30 31 30 E 181 May June (# of work hours) / (Labor- (#of work hours) (# of employees) / (Ending Inventory * Carrying 1. Production per day per employee Hour per Unit) 2. Production rate per day (Labor-Hour per Unit) 3. Total inventory carrying cost Cost) 4. Total regular production cost employees) (hourly pay rate) (# of production days) 5. Total subcontracting cost Subcontracting Cost) 6. Total cost of plan (# of work hours) (# of (Subcontracting Units * (Total Inventory Carrying Cost + Total