Kansas Furniture Has Received The Following Demand Requirements Month Demand July 1 000 August 1 200 September 1 400 Oc 1 (72.02 KiB) Viewed 31 times
Kansas Furniture Has Received The Following Demand Requirements Month Demand July 1 000 August 1 200 September 1 400 Oc 2 (42.92 KiB) Viewed 31 times
Kansas Furniture has received the following demand requirements: Month Demand July 1,000 August 1,200 September 1,400 October 1,800 November 1,800 December 1,600 Stockout costs are $100 per unit Inventory costs are $25 per unit per month No inventory left over from June for plans A, B, and D. Plan A: Produce at a steady rate equal to minimum requirements and subcontract the rest at $60 per unit. Store additional units in inventory. What is the total cost? Plan B: Vary the workforce. June's production was 1,300 units. The cost of hiring is $3,000 per 100 units. The cost of layoffs is $6,000 per 100 units. What is the total cost? Plan C: Keep the current workforce steady at a level producing 1,300 units per month. Subcontract the remainder to meet demand at $60 per unit. Assume 300 units in inventory available at end of June and usable in July. What is the total cost? Plan D: Keep the current workforce steady at a level producing 1,300 units per month. Permit maximum overtime at 20% at $40 per unit. The warehouse can only store 180 units. Idle the plant at $60 per unit. Subcontract any additional units at $60 per unit. What is the total cost?
July month / Demand LOO August 1,200 Soptember 1,400 1,800 November ( 1,800 Pecember 1,600 * Stockeast - $100/unit *Inwentary cost - #25/unit/month *No Inventory left over June for plans A, B+ D October A. Time Production Hiring Layoff Cost! Demand 1,000 1,200 1,400 August Sep october November December 1,800 1,800 1,600 TOTAL COST
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!