Operations Management
Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 11, Problem 3P

Determine the total cost for this plan given the following forecast:

Chapter 11, Problem 3P, Determine the total cost for this plan given the following forecast: Use steady regular output of

Use steady regular output of 400 units per month, use overtime as needed for up to 40 units per month, and use subcontracting to make up any needed output to match the forecast. Unit costs are:

Regular output = $25

Overtime = $40

Subcontract = $60

Average Balance Inventory = $15

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Determine the total cost for this plan given the following forecast:Month 1 2 3 4 5 6Forecast 380 400 420 440 460 480Use steady regular output of 400 units per month, use overtime as needed for up to 40 units permonth, and use subcontracting to make up any needed output to match the forecast. Unit costs are:Regular output = $25Overtime = $40Subcontract = $60Average Balance Inventory = $15
Given the following forecast and cost information, Regular time cost $ 40.00 per unitdetermine the total cost of a plan that uses regular time Overtime cost $ 60.00 per unitproduction output of 600 units per month, overtime is subcontracting cost $ 80.00 per unitused when needed up to a maximum of 60 units per holding cost $ 10.00 per unit per monthmonth, and subcontracting is used if additional units are needed to meet the forecast.Month Forecast1 5702 6003 6304 6505 6706 690Totals
Given the following forecast and cost information,        determine the total cost of a plan that uses regular time       production output of 600 units per month, overtime is        used when needed up to a maximum of 60 units per       month, and subcontracting is used if additional units are needed to meet the forecast       Regular time cost  $                            40.00 per unit   Overtime cost  $                            60.00 per unit (60 max)   subcontracting cost  $                            80.00 per unit   holding cost   $                            10.00 per unit per month    month 1 forecast 563 month 2 forecast 608 month 3 forecast 648 month 4 forecast 668 month 5 forecast 666 month 6 forecast 688   Show in Excel

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