PP.63 Jupiter, a large candy company, is having great success with its "Swan" family of candy bars. Due to a number of factors they like to plan their production at least six months into the future. The table below contains their demand projections (in tons) for April through September: Apr Aug 52,200 58,700 Sep Supply/Demand Info Predicted Sales Beginning May Jun Jul 48,900 53,200 64,900 58,000 Regular production Overtime production Subcontract production Ending inventory 8,900 Hired employees Fired employees Total employees 529 Cost variables are as follows: Cost Variables Labor cost/hour Overtime cost/ton $16 $32 Subcontracting cost/ton $24 Holding cost/ton/month Hiring cost/employee Firing cost/employee $10 $3,700 $5,500 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/ton 2 Regular production tons/employee/month Max regular production (tons/month) 100 57,700 Max overtime production (tons/month) Max subcontractor production (tons/month) 3,400 4,300 Given the above information (and don't overlook beginning number of employees and inventory levels in the first table), create a LEVEL production plan wit only the use of regular production and no inventory left over at the end of the six-month period. What is the regular production cost (over the six months from April through September) for a level production plan? (Display your answer to the nearest whole number.) Number What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total holding cost for this production plan? (Display your answer to the nearest whole number.) 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
PP.63 Jupiter, a large candy company, is having great success with its "Swan" family of candy bars. Due to a number of factors they like to plan their production at least six months into the future. The table below contains their demand projections (in tons) for April through September: Apr Aug 52,200 58,700 Sep Supply/Demand Info Predicted Sales Beginning May Jun Jul 48,900 53,200 64,900 58,000 Regular production Overtime production Subcontract production Ending inventory 8,900 Hired employees Fired employees Total employees 529 Cost variables are as follows: Cost Variables Labor cost/hour Overtime cost/ton $16 $32 Subcontracting cost/ton $24 Holding cost/ton/month Hiring cost/employee Firing cost/employee $10 $3,700 $5,500 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/ton 2 Regular production tons/employee/month Max regular production (tons/month) 100 57,700 Max overtime production (tons/month) Max subcontractor production (tons/month) 3,400 4,300 Given the above information (and don't overlook beginning number of employees and inventory levels in the first table), create a LEVEL production plan wit only the use of regular production and no inventory left over at the end of the six-month period. What is the regular production cost (over the six months from April through September) for a level production plan? (Display your answer to the nearest whole number.) Number What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total holding cost for this production plan? (Display your answer to the nearest whole number.) 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:PP.63 Jupiter, a large candy company, is having great success with its "Swan" family of candy bars. Due to a number of factors they like to plan their
production at least six months into the future. The table below contains their demand projections (in tons) for April through September:
Apr
Jun
Jul
Aug
Sep
Supply/Demand Info
Predicted Sales
Beginning
May
48,900 53,200
64,900 52,200 58,700 58,000
Regular production
Overtime production
Subcontract production
Ending inventory
8,900
Hired employees
Fired employees
Total employees
529
Cost variables are as follows:
Cost Variables
Labor cost/hour
$16
Overtime cost/ton
$32
Subcontracting cost/ton
Holding cost/ton/month
$24
$10
Hiring cost/employee
$3,700
Firing cost/employee
$5,500
Here
some additional relevant (capacity) information:
Capacity Information
Total labor hours/ton
2
Regular production tons/employee/month
100
57,700
Max regular production (tons/month)
Max overtime production (tons/month)
Max subcontractor production (tons/month)
3,400
4,300
Given the above information (and don't overlook beginning number of employees and inventory levels in the first table), create a LEVEL production plan with
only the use of regular production and no inventory left over at the end of the six-month period.
What is the regular production cost (over the six months from April through September) for a level production plan? (Display your answer to the nearest
whole number.)
Number
What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.)
Number
What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.)
Number
What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)
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
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