A small company produces recreational vehicles. The marketing manager has developed the following forecasts (in units): LO2 Month Forecast Use the following information: Regular labour cost Overtime labour cost Regular capacity Overtime capacity Holding cost Back-order cost Beginning inventory Desired ending inventory Hiring cost Mar 50 Apr 44 May 55 $240 per unit $360 per unit Jun 40 units per month, using 5 workers 60 8 units per month 0 $30 per unit per month $100 per unit per month 0 $2,000 per worker Develop the minimum cost production plan and compute its total cost. (Hint: Hire eight new workers and meet any shortages with overtime.) Jul 60 Aug 40 Sep 50 Total 359
A small company produces recreational vehicles. The marketing manager has developed the following forecasts (in units): LO2 Month Forecast Use the following information: Regular labour cost Overtime labour cost Regular capacity Overtime capacity Holding cost Back-order cost Beginning inventory Desired ending inventory Hiring cost Mar 50 Apr 44 May 55 $240 per unit $360 per unit Jun 40 units per month, using 5 workers 60 8 units per month 0 $30 per unit per month $100 per unit per month 0 $2,000 per worker Develop the minimum cost production plan and compute its total cost. (Hint: Hire eight new workers and meet any shortages with overtime.) Jul 60 Aug 40 Sep 50 Total 359
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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Transcribed Image Text:8. A small company produces recreational vehicles. The marketing manager has developed the following forecasts (in units): LO2
Month
Forecast
Use the following information:
Regular labour cost
Overtime labour cost
Regular capacity
Overtime capacity
Holding cost
Back-order cost
Beginning inventory
Desired ending inventory
Hiring cost
Mar
50
Apr
44
May
55
$240 per unit
$360 per unit
Jun
40 units per month, using 5 workers
60
8 units per month
$30 per unit per month
0
$100 per unit per month
0
$2,000 per worker
Develop the minimum cost production plan and compute its total cost. (Hint: Hire eight new workers and meet any shortages with overtime.)
Jul
60
Aug
40
Sep
50
Total
359
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