Zebra Technologies Corporation (ZTC) manufactures a number of navigation packages for pleasure boats. Their plant in Alabama wants to try a fixed production schedule for the next 6 months. When regular-time production and inventory cannot meet demand, they plan on first using overtime, and if that is insufficient, they will subcontract out in order to meet demand. The forecast for the next 6 months and key production data are provided below. Demand Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Hiring Cost Jan 700 Feb 600 Mar 400 65 units/month/employee $100/units $175/unit/month $150/unit 100 units $150/employee What would be the total cost of this plan? Apr 650 Employees Subcontracting Cost Subcontracting Limit May 850 Average Inventory Cost Initial Inventory Firing Cost Jun 1,000 10 $200/unit 200 units maximum $20/unit/month 100 units $200/employee
Zebra Technologies Corporation (ZTC) manufactures a number of navigation packages for pleasure boats. Their plant in Alabama wants to try a fixed production schedule for the next 6 months. When regular-time production and inventory cannot meet demand, they plan on first using overtime, and if that is insufficient, they will subcontract out in order to meet demand. The forecast for the next 6 months and key production data are provided below. Demand Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Hiring Cost Jan 700 Feb 600 Mar 400 65 units/month/employee $100/units $175/unit/month $150/unit 100 units $150/employee What would be the total cost of this plan? Apr 650 Employees Subcontracting Cost Subcontracting Limit May 850 Average Inventory Cost Initial Inventory Firing Cost Jun 1,000 10 $200/unit 200 units maximum $20/unit/month 100 units $200/employee
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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