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PP.61 A small manufacturer of specialty welding equipment has developed a level production plan for the next four quarters. Note, however, that this plan is incomplete and requires that you first compute the ending inventory for each quarter (and assume there is no Pre-Q1 ending inventory) before you answer the questions below Supply/Demand Info Forecast (demand) Regular production Subcontract production Ending inventory Hired employees Fired employees Total employees Pre-Q1 Q1 Q3 3.500 3.000 7,000 5.125 5.125 5.125 23 18 The table below shows additional relevant information: Capacity Information & Cost Variables Production rate (units/employee/quarter) Subcontractor capacity (units/quarter) Regular production costunit Holding costunit/quarter Hiring cost'employee Firing cost employee Subcontract cost/unit 125 450 500 $11 $1.000 $2,750 $128 Q4 7,000 5,125 41 What is the overall total cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total regular production cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total holding cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total hire cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total fire cost for this production plan? (Display your answer to the nearest whole number.) Number

PP.61 A small manufacturer of specialty welding equipment has developed a level production plan for the next four quarters. Note, however, that this plan is incomplete and requires that you first compute the ending inventory for each quarter (and assume there is no Pre-Q1 ending inventory) before you answer the questions below Supply/Demand Info Forecast (demand) Regular production Subcontract production Ending inventory Hired employees Fired employees Total employees Pre-Q1 Q1 Q3 3.500 3.000 7,000 5.125 5.125 5.125 23 18 The table below shows additional relevant information: Capacity Information & Cost Variables Production rate (units/employee/quarter) Subcontractor capacity (units/quarter) Regular production costunit Holding costunit/quarter Hiring cost'employee Firing cost employee Subcontract cost/unit 125 450 500 $11 $1.000 $2,750 $128 Q4 7,000 5,125 41 What is the overall total cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total regular production cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total holding cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total hire cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total fire cost for this production plan? (Display your answer to the nearest whole number.) Number

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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# Production Planning Exercise A small manufacturer of specialty welding equipment has developed a level production plan for the next four quarters. Note, however, that this plan is incomplete and requires that you first compute the ending inventory for each quarter (and assume there is no Pre-Q1 ending inventory) before you answer the questions below. ## Supply/Demand Information | Supply/Demand Info | Pre-Q1 | Q1 | Q2 | Q3 | Q4 | |-------------------|--------|------|------|------|------| | Forecast (demand) | | 3,500| 3,000| 7,000| 7,000| | Regular production| | 5,125| 5,125| 5,125| 5,125| | Subcontract production| | | | | | | Ending inventory | | | | | | | Hired employees | | 18 | | | | | Fired employees | | | | | | | Total employees | | 23 | 41 | 41 | 41 | ## Capacity Information & Cost Variables | Variable | Value | |---------------------------|-------| | Production rate (units/employee/quarter) | 125 | | Subcontractor capacity (units/quarter) | 450 | | Regular production cost/unit | $80 | | Holding cost/unit/quarter | $11 | | Hiring cost/employee | $1,060 | | Firing cost/employee | $2,750 | | Subcontract cost/unit | $128 | ### Calculation Questions 1. **What is the overall total cost for this production plan? (Display your answer to the nearest whole number.)** - **Answer:** (Input field for number) 2. **What is the total regular production cost for this production plan? (Display your answer to the nearest whole number.)** - **Answer:** (Input field for number) 3. **What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)** - **Answer:** (Input field for number) 4. **What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)** -
Transcribed Image Text:# Production Planning Exercise A small manufacturer of specialty welding equipment has developed a level production plan for the next four quarters. Note, however, that this plan is incomplete and requires that you first compute the ending inventory for each quarter (and assume there is no Pre-Q1 ending inventory) before you answer the questions below. ## Supply/Demand Information | Supply/Demand Info | Pre-Q1 | Q1 | Q2 | Q3 | Q4 | |-------------------|--------|------|------|------|------| | Forecast (demand) | | 3,500| 3,000| 7,000| 7,000| | Regular production| | 5,125| 5,125| 5,125| 5,125| | Subcontract production| | | | | | | Ending inventory | | | | | | | Hired employees | | 18 | | | | | Fired employees | | | | | | | Total employees | | 23 | 41 | 41 | 41 | ## Capacity Information & Cost Variables | Variable | Value | |---------------------------|-------| | Production rate (units/employee/quarter) | 125 | | Subcontractor capacity (units/quarter) | 450 | | Regular production cost/unit | $80 | | Holding cost/unit/quarter | $11 | | Hiring cost/employee | $1,060 | | Firing cost/employee | $2,750 | | Subcontract cost/unit | $128 | ### Calculation Questions 1. **What is the overall total cost for this production plan? (Display your answer to the nearest whole number.)** - **Answer:** (Input field for number) 2. **What is the total regular production cost for this production plan? (Display your answer to the nearest whole number.)** - **Answer:** (Input field for number) 3. **What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)** - **Answer:** (Input field for number) 4. **What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)** -
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