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) 53,800 53,400 51,000 63,800 49,200 59,000 Regular production Overtime production Subcontract production Ending inventory 4,000 Hired employees Fired employees Total employees 190 Cost variables are as follows: Cost Variables Labor cost/hour $16 Overtime cost/unit $39 Subcontracting cost/unit $35 Holding cost/unit/month $14 Hiring cost/employee $3,100 Firing cost/employee $5,500 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/SSD 4 Regular production units/employee/month 200 Max regular production/month 55,400 Max overtime production/month 5,000 Max subcontractor production/month 5,800 Assuming the company uses regular production first, then ONLY overtime and/or subcontract production, 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.) What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.) What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.) 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.) What is the total fire cost for this production plan? (Display your answer to the nearest whole number.) What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole 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 Info Beginning Jan Feb Mar Apr May Jun Forecast (demand) 53,800 53,400 51,000 63,800 49,200 59,000 Regular production Overtime production Subcontract production Ending inventory 4,000 Hired employees Fired employees Total employees 190 Cost variables are as follows: Cost Variables Labor cost/hour $16 Overtime cost/unit $39 Subcontracting cost/unit $35 Holding cost/unit/month $14 Hiring cost/employee $3,100 Firing cost/employee $5,500 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/SSD 4 Regular production units/employee/month 200 Max regular production/month 55,400 Max overtime production/month 5,000 Max subcontractor production/month 5,800 Assuming the company uses regular production first, then ONLY overtime and/or subcontract production, 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.) What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.) What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.) 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.) What is the total fire cost for this production plan? (Display your answer to the nearest whole number.) What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.)

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

See similar textbooks

Related questions

Question

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)		53,800	53,400	51,000	63,800	49,200	59,000
Regular production
Overtime production
Subcontract production
Ending inventory	4,000
Hired employees
Fired employees
Total employees	190

Cost variables are as follows:

Cost Variables
Labor cost/hour	$16
Overtime cost/unit	$39
Subcontracting cost/unit	$35
Holding cost/unit/month	$14
Hiring cost/employee	$3,100
Firing cost/employee	$5,500

Here is some additional relevant (capacity) information:

Capacity Information
Total labor hours/SSD	4
Regular production units/employee/month	200
Max regular production/month	55,400
Max overtime production/month	5,000
Max subcontractor production/month	5,800

Assuming the company uses regular production first, then ONLY overtime and/or subcontract production, 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.)


What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.)


What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.)


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.)


What is the total fire cost for this production plan? (Display your answer to the nearest whole number.)


What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.)

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here