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A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. Table 1 Other data Month 1 January 22 Production Demand Days Forecast 950 2 February 18 750 Inventory carrying cost Subcontracting cost per unit Average pay rate Overtime pay Rate 3 March 21 750 4 April 21 1,000 5 May 22 1,300 6 June 20 1,050 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) $5 per unit per month $10 per unit $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit $600 per unit This exercise only contains part b. b) Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan. The production rate per day = ☐ units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) The total regular production cost = $ (Enter your response as a whole number.) The total subcontracting cost = $. (Enter your response as a whole number.) Total cost with plan 6 = $. (Enter your response as a whole number.) Regular Month Demand Production Subcontract (Units) 1 January 950 2 February 750 3 March 750 4 April 1,000 5 May 1,300 6 June 1,050

A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. Table 1 Other data Month 1 January 22 Production Demand Days Forecast 950 2 February 18 750 Inventory carrying cost Subcontracting cost per unit Average pay rate Overtime pay Rate 3 March 21 750 4 April 21 1,000 5 May 22 1,300 6 June 20 1,050 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) $5 per unit per month $10 per unit $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit $600 per unit This exercise only contains part b. b) Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan. The production rate per day = ☐ units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) The total regular production cost = $ (Enter your response as a whole number.) The total subcontracting cost = $. (Enter your response as a whole number.) Total cost with plan 6 = $. (Enter your response as a whole number.) Regular Month Demand Production Subcontract (Units) 1 January 950 2 February 750 3 March 750 4 April 1,000 5 May 1,300 6 June 1,050

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. Table 1 Other data Month 1 January 22 Production Demand Days Forecast 950 2 February 18 750 Inventory carrying cost Subcontracting cost per unit Average pay rate Overtime pay Rate 3 March 21 750 4 April 21 1,000 5 May 22 1,300 6 June 20 1,050 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) $5 per unit per month $10 per unit $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit $600 per unit This exercise only contains part b. b) Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan. The production rate per day = ☐ units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) The total regular production cost = $ (Enter your response as a whole number.) The total subcontracting cost = $. (Enter your response as a whole number.) Total cost with plan 6 = $. (Enter your response as a whole number.) Regular Month Demand Production Subcontract (Units) 1 January 950 2 February 750 3 March 750 4 April 1,000 5 May 1,300 6 June 1,050
Transcribed Image Text:A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. Table 1 Other data Month 1 January 22 Production Demand Days Forecast 950 2 February 18 750 Inventory carrying cost Subcontracting cost per unit Average pay rate Overtime pay Rate 3 March 21 750 4 April 21 1,000 5 May 22 1,300 6 June 20 1,050 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) $5 per unit per month $10 per unit $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit $600 per unit This exercise only contains part b. b) Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan. The production rate per day = ☐ units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) The total regular production cost = $ (Enter your response as a whole number.) The total subcontracting cost = $. (Enter your response as a whole number.) Total cost with plan 6 = $. (Enter your response as a whole number.) Regular Month Demand Production Subcontract (Units) 1 January 950 2 February 750 3 March 750 4 April 1,000 5 May 1,300 6 June 1,050
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