A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecas

Question

A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. This exercise only contains part b. Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan. The production rate per day = units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) The total regular production cost = (Enter your response as a whole number.) The total subcontracting cost = (Enter your response as a whole number.) Total cost with plan 6 =. (Enter your response as a whole number.)

Explanation / Answer

EXPLANATION:

1)CALUCLATION OF PRODUCTION RATE PER DAY:

In plan 6 only seven workers are used in daily production.

2).Here the regular production cost is caluclated only by considering average pay per day , which is $40 per day. As per the plan -6 if monthly demand exceeds the regular production sub contract is used on excess production which is $12 per unit . Details of regular production cost and subcontract cost per every month as follows

Production rate per day as per plan 6 Working Hours Per Day 8 Work force available 7 Labour hours per unit 1.6 Daily production per day per labour (8/1.6) 5 Daily production per day with avilable workforce (5*7) 35

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