Overtime or SubcontractMonthDemandRegularProductionJan.Feb.MarchAprilMayJuneTotal000d. Determine the cost of the chase production plan.Total cost if workforce size adjustedTotal cost if overtime production usedTotal cost if subcontracting usedOvertime orSubcontractProductionX Answer is not complete.EndingInventory0Workers Required(4,000cases/worker)Hire0Firelayoff0 MonthJanuaryFebruaryMarchAprilMayJuneTotal DemandAverage Monthly DemandTABLE 13-4 Soda Galore Planning DataCurrent workforce6 workersAverage monthly output per worker4,000 cases per month.0.80 per case per monthInventory holding costRegular wage rateRegular production hours/month/workerOvertime wage rateHiring costSubcontracting costFiring/layoff costBeginning inventory4,000 (all safety stock)Assume that employees negotiate an increase in the regular production wage rate to $40 per hour and $60 per hour for overtime.Assume Soda Galore always plans to hold at least 4,000 cases of safety stock to meet unanticipated customer demand. Also assumethat hiring and layoff/firing, if necessary, occur at the beginning of the month.a. Using the planning information and the newly negotiated wage rates, develop a six-month production plan based on levelproduction. (Leave no cells blank - be certain to enter "0" wherever required.)ActGo toDemand Forecast16,000 cases24,000 cases32,000 cases32,000 cases24,000 cases136,000 cases264,000 cases44,000 cases$$36.00 per hour250 hours$54.00 per hour$1,000 per worker$3.20 per case$1,500 per worker

Note that, there is no information related to questions b and c, so we have answered the first…

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Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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