Latrisa International Inc. manufactures outdoor clothing apparel. They have deve
ID: 337625 • Letter: L
Question
Latrisa International Inc. manufactures outdoor clothing apparel. They have developed a forecast for their sandal Line. They have hired you to help them develop their production schedule for the next six months. Please use the information below to develop the production schedule and answer the questions below.
Full time employee 10 employees
Hourly pay rate (8hrs) $ 8.00
Labor-hours per unit 4 hours per unit
Subcontracting cost $ 20.00
Inventory carrying cost $ 7.00
Month
(A)
Demand Forecast
(Units)
(B)
Production Days Per Month
(C)
Average Production Days Per Month
(D)
Monthly Production
(Units)
(E)
Subcontracting Production (Units)
(F)
Monthly Inventory Change
(Units)
(G)
Ending Inventory
(Units)
January
2,500
30
February
2,475
25
March
3,000
30
April
3,500
30
May
4,100
30
June
4,525
30
Production per hour ________________
Production rate per day ________________
Total inventory carrying cost ________________
Total regular production cost ________________
Total subcontracting cost ________________
Total cost of plan ___________________
Month
(A)
Demand Forecast
(Units)
(B)
Production Days Per Month
(C)
Average Production Days Per Month
(D)
Monthly Production
(Units)
(E)
Subcontracting Production (Units)
(F)
Monthly Inventory Change
(Units)
(G)
Ending Inventory
(Units)
January
2,500
30
February
2,475
25
March
3,000
30
April
3,500
30
May
4,100
30
June
4,525
30
Explanation / Answer
Latrisa International Inc. manufactures outdoor clothing apparel. They have developed a forecast for their sandal Line. They have hired you to help them develop their production schedule for the next six months. Please use the information below to develop the production schedule and answer the questions below.
Full time employee 10 employees
Hourly pay rate (8hrs) $ 8.00
Labor-hours per unit 4 hours per unit
Subcontracting cost $ 20.00
Inventory carrying cost $ 7.00
Month
(A)
Demand Forecast
(Units)
(B)
Production Days Per Month
(C)
Average Production Days Per Month
(D)
Monthly Production
(Units)
(E)
Subcontracting Production (Units)
(F)
Monthly Inventory Change
(Units)
(G)
Ending Inventory
(Units)
January
2,500
30
February
2,475
25
March
3,000
30
April
3,500
30
May
4,100
30
June
4,525
30
Production per hour ________________
Production rate per day ________________
Total inventory carrying cost ________________
Total regular production cost ________________
Total subcontracting cost ________________
Total cost of plan ___________________
Month
(A)
Demand Forecast
(Units)
(B)
Production Days Per Month
(C)
Average Production Days Per Month
(D)
Monthly Production
(Units)
(E)
Subcontracting Production (Units)
(F)
Monthly Inventory Change
(Units)
(G)
Ending Inventory
(Units)
January
2,500
30
February
2,475
25
March
3,000
30
April
3,500
30
May
4,100
30
June
4,525
30
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