2 Zebra Technologies Corporation (ZTC) manufactures a number of navigation packages for pleasure boats. Their plant in Alabama wants to try a fixed production schedule for the next 6 months. When regular-time production and inventory cannot meetdemand, they plan on first using overtime, and if that is insufficient, they will subcontract out in order to meet demand. The forecast for the next 6 months and key production data are provided below.JanFebMarAprМayJunDemand7006004006508501,000EmployeesSubcontracting CostSubcontracting LimitAverage Inventory CostInitial InventoryProduction Rate65 units/month/employee10Production Cost$100/units$200/unitBackorder Cost$175/unit200 units maximumOvertime Cost$150/unit$20/unit/monthOvertime Limit100 units100 unitsWhat would be the total cost of this plan?Question 2If management at ZTC is interested in a chase strategy using a hire/fire option, what is the total cost of this plan? They plan on using a policy where if the need were for 21.2 workers, they would hire 22 workers for that quarter. (Hint: this will impact regulartime production and inventory.)

Find the Given details below: Month Jan Feb Mar Apr May Jun Total Demand 700 600 400 650 850…

Answered: Zebra Technologies Corporation (ZTC)…

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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