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 nearest whole number.) 11340000 What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.) 48000 What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.) 167400 What 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.) Number What is the total fire cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.) Number
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 nearest whole number.) 11340000 What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.) 48000 What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.) 167400 What 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.) Number What is the total fire cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.) Number
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: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 nearest
whole number.)
11340000
What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.)
48000
What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.)
167400
What 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.)
Number
What is the total fire cost for this production plan? (Display your answer to the nearest whole number.)
Number
What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.)
Number

Transcribed Image Text: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 Info
Beginning
Jan
Feb
Mar
Apr
May
Jun
Forecast (demand)
59,600
51,600
62,600
57,200
47,800
48,800
Regular production
Overtime production
Subcontract production
Ending inventory
Hired employees
4,800
Fired employees
Total employees
220
Cost variables are as follows:
Cost Variables
Labor cost/hour
$18
Overtime cost/unit
$30
Subcontracting cost/unit
Holding cost/unit/month
Hiring cost/employee
$27
$12
$3,800
Firing cost/employee
$5,700
Here is some additional relevant (capacity) information:
Capacity Information
Total labor hours/SSD
2
Regular production units/employee/month
Max regular production/month
200
56,000
Max overtime production/month
Max subcontractor production/month
4,800
5,000
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