Latrisa International Inc. manufactures outdoor clothing apparel. They have deve
ID: 339581 • 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
Answer:
Given informations as below
Then the table is calculated as below
Month (A) (B) (C) (D) (E) (F) (G) Demand Forecast Production Days Per Month Average Production Days Per Month Monthly Production (emply*units per day* days) Subcontracting Production (Units) Monthly Inventory Change Ending Inventory (Units) (Units) Demand-Production (Units) (Units) January 2,500 30 29.166 600 1,900 2500 0 February 2,475 25 29.166 500 1,975 2475 0 March 3,000 30 29.166 600 2,400 3000 0 April 3,500 30 29.166 600 2,900 3500 0 May 4,100 30 29.166 600 3,500 4100 0 June 4,525 30 29.166 600 3,925 4525 0 3500 16600Related Questions
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