PP.63 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: Apr Aug 52,200 58,700 Sep Supply/Demand Info Predicted Sales Beginning May Jun Jul 48,900 53,200 64,900 58,000 Regular production Overtime production Subcontract production Ending inventory 8,900 Hired employees Fired employees Total employees 529 Cost variables are as follows: Cost Variables Labor cost/hour Overtime cost/ton $16 $32 Subcontracting cost/ton $24 Holding cost/ton/month Hiring cost/employee Firing cost/employee $10 $3,700 $5,500 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/ton 2 Regular production tons/employee/month Max regular production (tons/month) 100 57,700 Max overtime production (tons/month) Max subcontractor production (tons/month) 3,400 4,300 Given the above information (and don't overlook beginning number of employees and inventory levels in the first table), create a LEVEL production plan wit only the use of regular production and no inventory left over at the end of the six-month period. What is the regular production cost (over the six months from April through September) for a level production plan? (Display your answer to the nearest whole number.) Number What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total subcontract 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 What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.) Number

PP.63 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: Apr Aug 52,200 58,700 Sep Supply/Demand Info Predicted Sales Beginning May Jun Jul 48,900 53,200 64,900 58,000 Regular production Overtime production Subcontract production Ending inventory 8,900 Hired employees Fired employees Total employees 529 Cost variables are as follows: Cost Variables Labor cost/hour Overtime cost/ton $16 $32 Subcontracting cost/ton $24 Holding cost/ton/month Hiring cost/employee Firing cost/employee $10 $3,700 $5,500 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/ton 2 Regular production tons/employee/month Max regular production (tons/month) 100 57,700 Max overtime production (tons/month) Max subcontractor production (tons/month) 3,400 4,300 Given the above information (and don't overlook beginning number of employees and inventory levels in the first table), create a LEVEL production plan wit only the use of regular production and no inventory left over at the end of the six-month period. What is the regular production cost (over the six months from April through September) for a level production plan? (Display your answer to the nearest whole number.) Number What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total subcontract 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 What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.) Number

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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