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Homework answers / question archive / Suppose that each unit of production requires one hour of time on the production line

Suppose that each unit of production requires one hour of time on the production line

Finance

Suppose that each unit of production requires one hour of time on the production line.The variable production cost each week is as follows:

$10 per hour for each hour up to 40 hours (first shift)

$14.50 per hour for each hour from 40 to 80 hours (second shift)

$18.25 per hour for each hour from 80 to 120 (third shift)

The firm can build and hold inventory: that is, production in one week can be used to meet demand in future weeks.But all demand must be met, and no backordering is allowed. The holding cost for inventory is $1 per unit per week. The inventory at the end of twelve weeks should be zero. The inventory at start of week 1 is also zero.

Determine a production schedule that minimizes the variable production cost and inventory holding cost that meets all of the demand.

The firm can build and hold inventory: that is, production in one week can be used to meet demand in future weeks. But all demand must be met, and no backordering is allowed. The holding cost for inventory is $1 per unit per week. The inventory at the end of twelve weeks should .be zero. The inventory at start of week 1 is also zero .Determine a production schedule that minimizes the variable production cost and inventory holding cost that meets all of the demand Problem IV.3.a (points (graded 1/3 ? (How much in total is produced in the following shifts (for all 12 weeks Shift 1 480 Shift 2 370 X Shift 3 140 X ??? ??? ??????? 1 ?? ?????? 3 ??????? ????? (1/3 ????) ????? ????? Problem IV.3.b (points (graded 0.0/3.0 (.What percentage of weeks is the inventory above zero? (If your answer is say 10.15% , please enter it as 10.15, rounded to two decimal places Problem IV.3.c (points (graded 0.0/3.0 (How much is the total cost of the production schedule? (in dollars, rounded to two decimal places ?????? ??? ??????? 0 ?? ?????? 3 ??????? ????? Problem IV.3.d (points (graded 0.0/6.0 :If the cost for third shift is increased to $25, answer the following series of questions ? (How much in total will be produced in shift 3 (in all 12 weeks ?By how much does the total cost of holding inventory change .How much is the change in total cost of the production schedule? rounded to two decimal places
 

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