Two of Crispe Cookies employees have resigned. Crispe Cookies management decides that they will not employ...
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Two of Crispe Cookies employees have resigned. Crispe Cookies management decides that they will not employ someone in those people's place yet as they will consider employing people when the demand increase for the Christmas festive season. They will rather make up the difference in output through overtime. The use of backlogs has proved to be successful in the past and are permitted in this plan as well. The company will recoup the total lost production by working overtime in these periods, which amounts to 1800 cakes in total. To accommodate this difference, the business will use overtime in periods 3,4 and 5 as these periods represent the months of August, September and October. (16) Period Forecast Output Regular Overtime Subcontract Output - forecast Inventory Beginning Ending Average Backlog Costs Regular Overtime Subcontract Inventory Back-order Total 1 16450 2 15950 3 15550 16550 5 18050 6 14950 Total / Totaal 97500 Two of Crispe Cookies employees have resigned. Crispe Cookies management decides that they will not employ someone in those people's place yet as they will consider employing people when the demand increase for the Christmas festive season. They will rather make up the difference in output through overtime. The use of backlogs has proved to be successful in the past and are permitted in this plan as well. The company will recoup the total lost production by working overtime in these periods, which amounts to 1800 cakes in total. To accommodate this difference, the business will use overtime in periods 3,4 and 5 as these periods represent the months of August, September and October. (16) Period Forecast Output Regular Overtime Subcontract Output - forecast Inventory Beginning Ending Average Backlog Costs Regular Overtime Subcontract Inventory Back-order Total 1 16450 2 15950 3 15550 16550 5 18050 6 14950 Total / Totaal 97500
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To calculate the output inventory and backlog for each period as well as the costs associated with regular production overtime subcontracting inventory and backorders we need to analyze the given info... View the full answer
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