May 8,000 Jan Feb March Apr 2,000 June 4,000 8,000 6,000 2,000 Current work force 10 workers Production per worker Inventory holding cost Regular wage rate Overtime wage rate Sub-contracting (S/c) cost Hiring cost Firing cost Beginning inventory 200 units per month s0.30 per case per month $20.00 per hour $30.00 per hour $40.00 per hour $1,200 per worker $2,400 per worker 3000 units Ending Inventory Mth Regular Production Overtime Sic Workers H Demand F Jan 4,000 Feb 8,000 March 6,000 Apr 2,000 Мay 8,000 June 2,000 Total 30,000

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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(b) Use a level production strategy.

Jan
Feb
March
Apr
May
June
4,000
8,000
6,000
2,000
8,000
2,000
Curent work force
10 workers
Production per worker
Inventory holding cost
Regular wage rate
Overtime wage rate
200 units per month
$0.30 per case per month
$20.00 per hour
Sub-contracting (S/c) cost
Hiring cost
Firing cost
$30.00 per hour
$40.00 per hour
$1,200 per worker
$2,400 per worker
Beginning inventory
3000 units
Mth
Regular
Production
Slc
Ending
Inventory
Workers H F
Demand
Overtime
Jan
4,000
Feb
8,000
March
6,000
Apr
2,000
May
8,000
June
2,000
Total
30,000
Total Cost:
Transcribed Image Text:Jan Feb March Apr May June 4,000 8,000 6,000 2,000 8,000 2,000 Curent work force 10 workers Production per worker Inventory holding cost Regular wage rate Overtime wage rate 200 units per month $0.30 per case per month $20.00 per hour Sub-contracting (S/c) cost Hiring cost Firing cost $30.00 per hour $40.00 per hour $1,200 per worker $2,400 per worker Beginning inventory 3000 units Mth Regular Production Slc Ending Inventory Workers H F Demand Overtime Jan 4,000 Feb 8,000 March 6,000 Apr 2,000 May 8,000 June 2,000 Total 30,000 Total Cost:
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