APP Trial and Error Given the following information: Quarter Demand 2 9,000 3 10,200 4 3,300 Regular Prod. Capacity = 7,225 units/qtr Regular Prod. Cost = $12/unit Overtime Prod. Capacity = 2,000 units/qtr Overtime Prod. Cost = $17/unit Subcontracting Capacity = 10,000 units/qtr Subcontracting Cost = $22/unit Inventory Cost = $5/unit/qtr Beginning Inventory = 0 units Backordering Cost = $12/unit/qtr Beginning workforce = 50 workers Hiring Cost = $2000/worker Production rate/worker = 200 units/qtr Firing Cost = $5000/worker Develop a Production Plan using Level Production with Overtime and Subcontracting Strategies. A) How many units will be produced by the Subcontractor during the 3rd quarter? B) What is the cost of the plan? Develop a Production Plan using Chase Demand with Subcontracting Strategies. (Hint: # of workers should be an integer value, round up values.) C) How many workers will be hired by the company during the 2nd quarter? D) What is the cost of the plan?
APP Trial and Error
Given the following information:
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Regular Prod. Capacity = 7,225 units/qtr Regular Prod. Cost = $12/unit Overtime Prod. Capacity = 2,000 units/qtr Overtime Prod. Cost = $17/unit
Subcontracting Capacity = 10,000 units/qtr Subcontracting Cost = $22/unit
Inventory Cost = $5/unit/qtr
Beginning Inventory = 0 units Backordering Cost = $12/unit/qtr
Beginning workforce = 50 workers Hiring Cost = $2000/worker
Production rate/worker = 200 units/qtr Firing Cost = $5000/worker
Develop a Production Plan using Level Production with Overtime and Subcontracting Strategies.
A) How many units will be produced by the Subcontractor during the 3rd quarter?
B) What is the cost of the plan?
Develop a Production Plan using Chase Demand with Subcontracting Strategies. (Hint: # of workers should be an integer value, round up values.)
C) How many workers will be hired by the company during the 2nd quarter?
D) What is the cost of the plan?
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