Given the Information in the below table's, calculate the total cost if you choose the: i) Level Strategy with average production per day. ii) Chase strategy for the production. Month Expected Demand Production Days Jan 600 22 Feb 800 18 March 900 21 21

College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter6: Systems Of Equations And Inequalities
Section: Chapter Questions
Problem 21T: A manufacturer produces two models of television stands. The table at the left shows the times (in...
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Given the Information in the below table's,
calculate the total cost if you choose the:
i) Level Strategy with average production per
day.
ii) Chase strategy for the production.
Month Expected Demand Production Days
Jan 600 22
Feb 800 18
March 900 21
April 1000 21
Inventory carrying cost $5 per unit per
month
Subcontracting cost per unit $20 per unit
Average Pay rate $10 per hour ($80 per day)
Over time Pay rate $17 per hour (above 8
hours)
Labour-hours to produce a unit 1.6 hours
per unit
Cost of increasing daily production rate
$300 per unit
Cost of decreasing daily production rate
$600 per unit
Transcribed Image Text:Given the Information in the below table's, calculate the total cost if you choose the: i) Level Strategy with average production per day. ii) Chase strategy for the production. Month Expected Demand Production Days Jan 600 22 Feb 800 18 March 900 21 April 1000 21 Inventory carrying cost $5 per unit per month Subcontracting cost per unit $20 per unit Average Pay rate $10 per hour ($80 per day) Over time Pay rate $17 per hour (above 8 hours) Labour-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate $300 per unit Cost of decreasing daily production rate $600 per unit
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