$2,000 per worker Develop the minimum cost production plan and compute its total cost.
$2,000 per worker Develop the minimum cost production plan and compute its total cost.
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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Question
![A small company produces recreational vehicles. The
(in units):
Mar Apr May Jun Jul Aug Sep
50
Total
Month
359
Forecast
55
60 60 40
50
44
Use the following information:
Regular labour cost
$240 per unit
Overtime labour cost
$360 per unit
Regular capacity
40 units per month, using
5 workers
Overtime capacity
8 units per month
Holding cost
$30 per unit per month
Back-order cost
$100 per unit per month
Beginning inventory
Desired ending inventory 0
Hiring cost
$2,000 per worker
Develop the minimum cost production plan and compute
its total cost.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F875e1466-457f-4df0-8836-9e851949bd7c%2F1b9d5d0a-26eb-4f36-b0a4-546e4444d06c%2F4j6h97_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A small company produces recreational vehicles. The
(in units):
Mar Apr May Jun Jul Aug Sep
50
Total
Month
359
Forecast
55
60 60 40
50
44
Use the following information:
Regular labour cost
$240 per unit
Overtime labour cost
$360 per unit
Regular capacity
40 units per month, using
5 workers
Overtime capacity
8 units per month
Holding cost
$30 per unit per month
Back-order cost
$100 per unit per month
Beginning inventory
Desired ending inventory 0
Hiring cost
$2,000 per worker
Develop the minimum cost production plan and compute
its total cost.
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