A steel workshop of PT Mental Baja produces leaf springs for cars. they have a demand forecast for the next 6 months as a next: i. January 446 units (production time 20 days) ii. February 600 units (production time 18 days) iii. March 700 units (production time 20 days) iv. April 900 units (production time 20 days) v. May 650 units (production time 20 days) vi. June 550 units (production time 20 days) The following are some important information to be the basis for doing calculation of production costs as follows: i. Inventory cost $4 per unit ii. Subcontractor fee $15 per unit iii. Workers cost $10 per hour or $80 per day iv. Production time per unit 1.6 hours Tasks and questions a. Assuming that the number of units that can be produced is 35 units per day and 1 person can make 7 units, make an estimated cost by using Constant Workforce approach. b. Assuming that internal processing is carried out using capacitors of daily production are the lowest for 6 months and constant, calculate estimated production costs with an approach of using Subcontractor. c. Which approach will be taken by the workshop? Describe the answer you

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 46P
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A steel workshop of PT Mental Baja produces leaf springs for cars. they
have a demand forecast for the next 6 months as a
next:
i. January 446 units (production time 20 days)
ii. February 600 units (production time 18 days)
iii. March 700 units (production time 20 days)
iv. April 900 units (production time 20 days)
v. May 650 units (production time 20 days)
vi. June 550 units (production time 20 days)

The following are some important information to be the basis for doing
calculation of production costs as follows:
i. Inventory cost $4 per unit
ii. Subcontractor fee $15 per unit
iii. Workers cost $10 per hour or $80 per day
iv. Production time per unit 1.6 hours

Tasks and questions
a. Assuming that the number of units that can be produced is 35 units per day
and 1 person can make 7 units, make an estimated cost by using
Constant Workforce approach.
b. Assuming that internal processing is carried out using
capacitors of daily production are the lowest for 6 months and constant,
calculate estimated production costs with an approach of using
Subcontractor.
c. Which approach will be taken by the workshop? Describe the answer
you

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