PP.61 A small manufacturer of specialty welding equipment has developed a level production plan for the next four quarters, as seen below:
Supply/Demand Info Pre-Q1 Q1 Q2 Q3 Q4
Forecast (demand) 4,600 4,600 3,680 6,440
Regular production 4,830 4,830 4,830 4,830
Subcontract production
Ending inventory
Hired employees 12
Fired employees
Total employees 30 42 42 42 42
Additional Information:
Capacity Information & Cost Variables
Production rate (units/employee/quarter) 115
Subcontractor capacity (units/quarter) 480
Regular production cost/unit $70
Holding cost/unit/quarter $14
Hiring cost/employee $980
Firing cost/employee $2,600
Subcontract cost/unit $105
What is the overall total cost for this production plan? (Display your answer to the nearest whole number.)
What is the total regular production cost for this production plan? (Display your answer to the nearest whole number.)
What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)
What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)
What is the total fire cost for this production plan? (Display your answer to the nearest whole number.)
PLEASE DISPLAY ANSWERS IN EXCEL
