Assuming the company ONLY uses overtime and/or subcontract production if regular production capacity is not sufficient, answer the following questions:What is the regular production cost (over the six months from January through June) for a CHASE production plan? (Display your answer to the nearestwhole number.)11340000What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.)48000What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.)167400What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)NumberWhat is the total fire cost for this production plan? (Display your answer to the nearest whole number.)NumberWhat is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.)Number PP.52 A manufacturer of solid state drives (SSDS) has projected the next six months of demand to be as shown the table below:Supply/Demand InfoBeginningJanFebMarAprMayJunForecast (demand)59,60051,60062,60057,20047,80048,800Regular productionOvertime productionSubcontract productionEnding inventoryHired employees4,800Fired employeesTotal employees220Cost variables are as follows:Cost VariablesLabor cost/hour$18Overtime cost/unit$30Subcontracting cost/unitHolding cost/unit/monthHiring cost/employee$27$12$3,800Firing cost/employee$5,700Here is some additional relevant (capacity) information:Capacity InformationTotal labor hours/SSD2Regular production units/employee/monthMax regular production/month20056,000Max overtime production/monthMax subcontractor production/month4,8005,000

Given- Cost Variables-Labor cost/hr =$18Overtime cost/unit =$30Subcontracting cost/unit…

Answered: Assuming the company ONLY uses overtime…

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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Similar questions

A20
Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 11,000; winter, 8,000; spring, 6,000; summer, 13,000. Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $100 for each temp; layoff $200 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. a. What is the total cost for this plan?
The table above provides the aggregate plan of production by a firm. It is known that the firm uses a level plan with backorders. Given this information, what is the number in the cell with the question mark?
Use Excel formulas to complete the calculations and then answer the short-answer questions in the following spreadsheet: Inventory Analysis at Walmart Click for more options Hint: When calculating retail price {RP} based on cost {C} and markup percentage {M%} on RP, use the Cost Complement formula we have discussed previously in class: RP = [(C)/(100% - M%)] x 100
Ray Holt seeks an investment for his new business. The investor will bear all the costs(fixed + variable) and wants a rate of return of at least Y%. For the business fixed cost is Fc, selling price of a unit is Sp, and Cost of production of a unit is Cp. How many units, x, should Ray Holt maketo meet the investor’s rate of return requirement? If the requested rate of return is 10%, fixed cost is $10,000, selling price is $5, and cost of production is $3, how many units should be made?
Given the following data: Inventory Holding Cost is $10/unit/month on ending inventory levels. Beginning inventory of Month 1 is 100 units. Hiring (Firing) Cost is $100 ($200) per worker. Each worker produces 10 units per month. There are 20 work persons on the payroll at the end of month 0. Month 1 2 3 4 5 6 Demand 300 300 400 300 300 400 What is the total cost of a chase strategy production plan?
A retailer has two merchandizers, Sue and Bob, who are responsible for setting orderquantities for the products they manage. For all of their products, the critical ratio is .7and the coefficient of variation of their demand forecasts is 0.35. At the end of the season, Sue is proud to report that she has sold the entire inventory she purchased. Bob, onthe other hand, sold only about a third of his products. Who is more likely to be choosing quantities that maximize expected profit? a. Sue because she doesn’t incur the cost of salvaging inventory.b. Sue because she must have sold more units than Bob.c. Bob because even leftover inventory generates some additional revenue.d. Bob because he is probably ordering more than the mean of the demand forecast.
The lease cost for a specialized highway design software package is estimated to be $13,000 for each of years 1, 2, and 3 (future dollars). (a) Calculate the CV amount today (year 0) of each future cost estimate at the inflation rate of 6% per year. (b) Develop a spreadsheet and graph for inflation rates of 3%, 6%, and 8% per year that show the CV today.
Birka Styles & Co is introducing a new line of beachwear for their retail stores. The manager needs to decide how many lots of the new beachwear to order for their stores. The marketing came up with a payoff table (see below) considering information about the price, projected sales level, and cost of inventory and ordering. DEMAND Order size Low Medium High 1 lot 12,000 15,000 15,000 2 lots 9,000 25,000 35,000 3 lots 6,000 35,000 60,000 The owner found out that: P(Low demand) = 1/3; P(Med demand) = 1/2; P(High demand) = 1/6. Which of the following decision is NOT true? A)The best decision is to order 3 lots for a payoff of $29,500. The probabilities gave me enough information to perform a Laplace approach. B)The best decision is to order 3 lots for a payoff of $29,500. The probabilities gave me enough information to perform the EMV approach. C)The EVPI is $2,000. D)The EVwPI is $31,500.
You work for the Brad's Nailer Company which manufactures two types of nailers: a pneumatic model and a cordless model. You have contracted to supply a national retail chain with both pneumatic nailers and cordless nailers. However, Brad's nailer production capability is limited in three departments: production, testing, and packaging. Your answer will be the revenue for a production plan that maximizes revenue - rounded to the nearest whole dollar. (The number of nailers may not be a whole number, which is acceptable in this chapter.) Use Scenario 2 Pneum. Revenue Pneum. Prod Hrs Pneum. Test Hrs Pneum. Pkg Hrs Pneum. Sales Cordless Revenue Cordless Prod Hrs Cordless Test Hrs Cordless Pkg Hrs Cordless Sales Prod Hrs max Testing Hrs max Pkg Hrs max Scenario 1 Scenario 2 Scenario 3 42 0.3 0.3 0.1 21,000 67 0.3 0.4 0.1 15,000 11,000 15,000 4,800 55.50 0.4 0.3 0.1 24,500 69.75 0.3 0.5 0.1 12,000 14,000 15,000 4,800 38.50 0.25 0.4 0.1 18,000 44 0.4 0.4 0.2 14,000 14,000 15,000 4,800
Pls help with below homework. Select the correct option and explain it in 7-8 sentences.
Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Unit Price ($) Product EndingInventory Beginning Ending A 500 0.15 0.19 B 50 1.40 1.80 C 100 4.50 4.20 D 60 12.00 13.60 Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. (Round your answer to the nearest integer.) I = ?? What type of weighted aggregate price index must be developed for the LIFO inventory valuation? -Paasche index -Laspeyres Index

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