Reference no: EM132691849
Jupiter, a large candy company, is having great success with its "Swan" family of candy bars. Due to a number of factors they like to plan their production at least six months into the future. The table below contains their demand projections (in tons) for April through September:
Supply/Demand Info Beginning Apr May Jun Jul Aug Sep
Predicted Sales 52,500 45,800 62,500 47,000 58,700 54,400
Regular production
Overtime production
Subcontract production
Ending inventory 6,500
Hired employees
Fired employees
Total employees 495
Cost variables are as follows:
Cost Variables
Labor cost/hour $16
Overtime cost/ton $37
Subcontracting cost/ton $30
Holding cost/ton/month $11
Hiring cost/employee $2,800
Firing cost/employee $4,600
Here is some additional relevant (capacity) information:
Capacity Information
Total labor hours/ton 2
Regular production tons/employee/month 100
Max regular production (tons/month) 56,300
Max overtime production (tons/month) 4,500
Max subcontractor production (tons/month) 4,300
- What is the regular production cost (over the six months from April through September) for a level production plan? (whole number.)
- What is the total overtime production cost for this production plan? (whole number.)
- What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.)
- What is the total holding cost for this production plan? (whole number.)
- What is the total hire cost for this production plan? (whole number.)
- What is the total fire cost for this production plan? (whole number.)
- What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.)