Question: Styles 2.. 3...... 4. L..5....6 Q1) Evaluate each plan and find out which one is better in terms of total costs - Plan 1: for

Styles 2.. 3...... 4. L..5....6 Q1) Evaluate each plan and find out which one is better in terms of total costs - Plan 1: for the manufacturer is to maintain a constant workforce throughout the 6-month period. we assume that the production per day is average requirements (average production per day) and that we have a constant workforce, no overtime or idle time, no safety stock, and no subcontractors. The fimm accumulates inventory during the slack period of demand January through March, and depletes it during the higher-demand warm season, April through Jume. We assume beginning inventory = 0 and planned ending inventory = 0. - Plan 2: is to maintain a constant workforce at a level necessary to meet the lowest demand month (February ) and to meet all demand above this level by subcontracting = Please use the following information Costs table: Inventory carrying cost $ 3 per unit per month Subcontracting cost per unit 317 per unit Average pay rate $10 per hour (380 per day- & working hours per day) Labor-hours to produce a unit 4 hours per unit Monthly forecasts: Month Jan Expected Demand 1800 Production Days 16 20 20 Feb Mar Apr May Jun 600 800 1,250 1,350 1,500 28 25 20
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
