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You are responsible of developing the six-month aggregate production plan at Sodas Galore, a manufacturer of soft drinks. Your company makes three types of sodas: regular, diet and super-caffeinated. All three types are made using the same production process, and the switching costs can be ignored as they are so minimal. The S&OP team case created the following forecast of demand for the next six months. In addition to the sales forecast, the company has also developed planning values that are also shown in the next table. Sales Forecast (cases) Softdrinks Planning Values 8 workers Month January February 24,000 Current workforce 32,000 Average monthly output per worker 32,000 Inventory holding cost 46,000 Regular wage rate 60,000 Regular production hours/month 44,000 Overtime wage rate 240,000 Hiring cost 4,000 cases per month $.30 per case per month $20.00 per hour March April May 160 hours $30.00 per hour $1,000 per worker $1.15 per case $1,500 per worker June Total Subcontracting cost Firing/layoff cost What are the cost for a level production plan, a chase production plan and a mixed production plan (limit of overtime to just 12 cabinet sets per month in October and November

You are responsible of developing the six-month aggregate production plan at Sodas Galore, a manufacturer of soft drinks. Your company makes three types of sodas: regular, diet and super-caffeinated. All three types are made using the same production process, and the switching costs can be ignored as they are so minimal. The S&OP team case created the following forecast of demand for the next six months. In addition to the sales forecast, the company has also developed planning values that are also shown in the next table. Sales Forecast (cases) Softdrinks Planning Values 8 workers Month January February 24,000 Current workforce 32,000 Average monthly output per worker 32,000 Inventory holding cost 46,000 Regular wage rate 60,000 Regular production hours/month 44,000 Overtime wage rate 240,000 Hiring cost 4,000 cases per month $.30 per case per month $20.00 per hour March April May 160 hours $30.00 per hour $1,000 per worker $1.15 per case $1,500 per worker June Total Subcontracting cost Firing/layoff cost What are the cost for a level production plan, a chase production plan and a mixed production plan (limit of overtime to just 12 cabinet sets per month in October and November

Practical Management Science
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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You are responsible of developing the six-month aggregate production plan at Sodas Galore, a manufacturer of soft drinks. Your company makes three types of sodas: regular, diet and super-caffeinated. All three types are made using the same production process, and the switching costs can be ignored as they are so minimal. The S&OP team case created the following forecast of demand for the next six months. In addition to the sales forecast, the company has also developed planning values that are also shown in the next table. Month Sales Forecast (cases) Softdrinks Planning Values January 24,000 Current workforce 8 workers 32,000 Average monthly output per worker 32,000 Inventory holding cost 46,000 Regular wage rate February 4,000 cases per month $.30 per case per month $20.00 per hour March April May 60,000 Regular production hours/month 44,000 Overtime wage rate 160 hours June $30.00 per hour 240,000 Hiring cost $1,000 per worker $1.15 per case Total Subcontracting cost Firing/layoff cost $1,500 per worker What are the cost for a level production plan, a chase production plan and a mixed production plan (limit of overtime to just 12 cabinet sets per month in October and November
Transcribed Image Text:You are responsible of developing the six-month aggregate production plan at Sodas Galore, a manufacturer of soft drinks. Your company makes three types of sodas: regular, diet and super-caffeinated. All three types are made using the same production process, and the switching costs can be ignored as they are so minimal. The S&OP team case created the following forecast of demand for the next six months. In addition to the sales forecast, the company has also developed planning values that are also shown in the next table. Month Sales Forecast (cases) Softdrinks Planning Values January 24,000 Current workforce 8 workers 32,000 Average monthly output per worker 32,000 Inventory holding cost 46,000 Regular wage rate February 4,000 cases per month $.30 per case per month $20.00 per hour March April May 60,000 Regular production hours/month 44,000 Overtime wage rate 160 hours June $30.00 per hour 240,000 Hiring cost $1,000 per worker $1.15 per case Total Subcontracting cost Firing/layoff cost $1,500 per worker What are the cost for a level production plan, a chase production plan and a mixed production plan (limit of overtime to just 12 cabinet sets per month in October and November
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