HINT- total cost for plan D is $81,800

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HINT- total cost for plan D is $81,800

Hint Total Cost For Plan D Is 81 800 1 (53.74 KiB) Viewed 28 times

Hint Total Cost For Plan D Is 81 800 2 (55.11 KiB) Viewed 28 times

Hint Total Cost For Plan D Is 81 800 3 (41.97 KiB) Viewed 28 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 August month / Demand LO 1,200 September 1,400 1,800 1,800 December 1,600 * stockcast - $100/unit * Inventory cost - $25/unit/month *No Inventory left over June for plans A, B+D October November A. Time Production Hiring Layoff Coot! Demand 1.000 1,200 August 1,400 1,800 loctober November December 1,800 1,600 TOTAL COST