A steel workshop of PT Mental Baja produces leaf springs for cars. they have a demand forecast for the next 6 months as a next: i. January 446 units (production time 20 days) ii. February 600 units (production time 18 days) iii. March 700 units (production time 20 days) iv. April 900 units (production time 20 days) v. May 650 units (production time 20 days) vi. June 550 units (production time 20 days) The following are some important information to be the basis for doing calculation of production costs as follows: i. Inventory cost $4 per unit ii. Subcontractor fee $15 per unit iii. Workers cost $10 per hour or $80 per day iv. Production time per unit 1.6 hours Tasks and questions a. Assuming that the number of units that can be produced is 35 units per day and 1 person can make 7 units, make an estimated cost by using Constant Workforce approach. b. Assuming that internal processing is carried out using capacitors of daily production are the lowest for 6 months and constant, calculate estimated production costs with an approach of using Subcontractor. c. Which approach will be taken by the workshop? Describe the answer you

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...
icon
Related questions
Question

A steel workshop of PT Mental Baja produces leaf springs for cars. they
have a demand forecast for the next 6 months as a
next:
i. January 446 units (production time 20 days)
ii. February 600 units (production time 18 days)
iii. March 700 units (production time 20 days)
iv. April 900 units (production time 20 days)
v. May 650 units (production time 20 days)
vi. June 550 units (production time 20 days)

The following are some important information to be the basis for doing
calculation of production costs as follows:
i. Inventory cost $4 per unit
ii. Subcontractor fee $15 per unit
iii. Workers cost $10 per hour or $80 per day
iv. Production time per unit 1.6 hours

Tasks and questions
a. Assuming that the number of units that can be produced is 35 units per day
and 1 person can make 7 units, make an estimated cost by using
Constant Workforce approach.
b. Assuming that internal processing is carried out using
capacitors of daily production are the lowest for 6 months and constant,
calculate estimated production costs with an approach of using
Subcontractor.
c. Which approach will be taken by the workshop? Describe the answer
you

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Introduction to Forecasting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.