A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. This exercise only contains part a. a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). Table 1 Avg Dem Per Prod. Day Inventory carrying cost Other data $8 per unit per month Production Demand Month Days Forecast Subcontracting cost per unit $12 per unit Average pay rate Overtime pay Rate $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit 1 January 22 950 2 February 18 750 3 March 21 750 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) 4 April 21 1,000 5 May 6 June 22 1,300 20 1,050 $600 per unit The production rate per day units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) Regular Production Subcontract Month Demand (Units) 1 January 950 2 February 750 3 March 750 4 April 1,000 5 May 6 June 1,300 1,050 The total regular production cost = $ (Enter your response as a whole number.) The total subcontracting cost = $| (Enter your response as a whole number.)
A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. This exercise only contains part a. a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). Table 1 Avg Dem Per Prod. Day Inventory carrying cost Other data $8 per unit per month Production Demand Month Days Forecast Subcontracting cost per unit $12 per unit Average pay rate Overtime pay Rate $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit 1 January 22 950 2 February 18 750 3 March 21 750 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) 4 April 21 1,000 5 May 6 June 22 1,300 20 1,050 $600 per unit The production rate per day units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) Regular Production Subcontract Month Demand (Units) 1 January 950 2 February 750 3 March 750 4 April 1,000 5 May 6 June 1,300 1,050 The total regular production cost = $ (Enter your response as a whole number.) The total subcontracting cost = $| (Enter your response as a whole number.)
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Transcribed Image Text:A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are
presented in the table below. There are 8 hours of production per day.
This exercise only contains part a.
a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using
subcontracting to meet remaining demand. Evaluate this plan.
To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number).
Table 1
Avg Dem Per
Prod. Day Inventory carrying cost
Other data
Production
Demand
$8 per unit per month
Month
Days
Forecast
Subcontracting cost per unit $12 per unit
Average pay rate
Overtime pay Rate
$5 per hour ($40 per day)
$7 per hour (above 8 hrs per
day)
1.6 hrs per unit
$300 per unit
1 January
22
950
2 February
18
750
з March
21
750
Labor-hours per unit
Cost of increasing daily
production rate (hiring &
training)
Cost of decreasing daily
production rate (layoffs)
4 April
21
1,000
5 May
22
1,300
June
20
1,050
$600 per unit
The production rate per day
units. (Enter your response as a whole number.)
%3D
Fill in the table below. (Enter your responses as whole numbers.)
Regular
Production
Subcontract
Month
Demand
(Units)
1
January
950
2 February
750
March
750
4 April
1,000
5 May
1,300
June
1,050
The total regular production cost = $
(Enter your response as a whole number.)
The total subcontracting cost = $
(Enter your response as a whole number.)
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