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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