Overtime or SubcontractMonthDemandRegularProductionJan.Feb.MarchAprilMayJuneTotal000d. Determine the cost of the chase production plan.Total cost if workforce size adjustedTotal cost if overtime production usedTotal cost if subcontracting usedOvertime orSubcontractProductionX Answer is not complete.EndingInventory0Workers Required(4,000cases/worker)Hire0Firelayoff0 MonthJanuaryFebruaryMarchAprilMayJuneTotal DemandAverage Monthly DemandTABLE 13-4 Soda Galore Planning DataCurrent workforce6 workersAverage monthly output per worker4,000 cases per month.0.80 per case per monthInventory holding costRegular wage rateRegular production hours/month/workerOvertime wage rateHiring costSubcontracting costFiring/layoff costBeginning inventory4,000 (all safety stock)Assume that employees negotiate an increase in the regular production wage rate to $40 per hour and $60 per hour for overtime.Assume Soda Galore always plans to hold at least 4,000 cases of safety stock to meet unanticipated customer demand. Also assumethat hiring and layoff/firing, if necessary, occur at the beginning of the month.a. Using the planning information and the newly negotiated wage rates, develop a six-month production plan based on levelproduction. (Leave no cells blank - be certain to enter "0" wherever required.)ActGo toDemand Forecast16,000 cases24,000 cases32,000 cases32,000 cases24,000 cases136,000 cases264,000 cases44,000 cases$$36.00 per hour250 hours$54.00 per hour$1,000 per worker$3.20 per case$1,500 per worker

Note that, there is no information related to questions b and c, so we have answered the first…

Answered: Month January February March April May…

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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Resource Allocation Your salami manufacturing plant can order up to 1,000 pounds of pork and 2,400 pounds of beef per day for use in manufacturing its two specialties: Count Dracula Salami and Frankenstein Sausage. Production of the Count Dracula variety requires 1 pound of pork and 3 pounds of beef for each salami, while the Frankenstein variety requires 2 pounds of pork and 2 pounds of beef for every sausage. In view of your heavy investment in advertising Count Dracula Salami, you have decided that at least one third of the total production should be Count Dracula. On the other hand, because of the health-conscious consumer climate, your Frankenstein Sausage (sold as having less beef) is earning your company a profit of $5 per sausage, while sales of the Count Dracula variety are down and it is earning your company only $1 per salami. Given these restrictions, how many of each kind of sausage should you produce to maximize profits, and what is the maximum possible profit (in…
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Resource Allocation Your salami manufacturing plant can order up to 1,000 pounds of pork and 2,400 pounds of beef per day for use in manufacturing its two specialties: Count Dracula Salami and Frankenstein Sausage. Production of the Count Dracula variety requires 1 pound of pork and 3 pounds of beef for each salami, while the Frankenstein variety requires 2 pounds of pork and 2 pounds of beef for every sausage. In view of your heavy investment in advertising Count Dracula Salami, you have decided that at least one third of the total production should be Count Dracula. On the other hand, because of the health-conscious consumer climate, your Frankenstein Sausage (sold as having less beef) is earning your company a profit of $3 per sausage, while sales of the Count Dracula variety are down and it is earning your company only $1 per salami. Given these restrictions, how many of each kind of sausage should you produce to maximize profits, and what is the maximum possible profit (in…
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