José Martinez of El Paso has developed a polished stainless-steel tortilla machine that makes it a...

50.1K

Verified Solution

Question

General Management

José Martinez of El Paso has developed a polishedstainless-steel tortilla machine that makes it a “showpiece” fordisplay in Mexican restaurants. He needs to develop a 5-monthaggregate plan. His forecast of capacity and demand follows:

Month 1Month 1Month 1Month 1Month 1
Demand150160130200210
Capacity
Regular150150150150150
Overtime2020101010

Additional information: Subcontracting: 100units available over the 5-month period, Beginning inventory: 0units

Costs:

Regular time cost per unit = $100

Overtime cost per unit = $125

Subcontract cost per unit = $135

Inventory holding cost per unit = $3

Assume that back-orders are not permitted.

a. Using the transportation method, what is the total cost ofthe optimal plan?                          [ Select ]                     ["$90,140", "$86,100", "$88,150", "$85,500"]     

b. Does any regular time production go unused?                          [ Select ]                     ["cannot determine", "no", "yes"]        If so/not, how much is usedor not used? 50 units

c. What is the total cost of the plan if ending inventoryrequired for the next planning period is: 20 units (include holdingcosts in the overall calculation)?          [ Select ]                     ["$88,150", "$90,850", "$90,910", "$91,900"]     

please answer all the questions with the right answer thanks

Answer & Explanation Solved by verified expert
4.3 Ratings (850 Votes)
Already SolvedProduce in Used inM1M2M3M4M5TotalCapacityBeginning inventory0000000M1 reg time1500000150150M1 overtime00000020M1 subcontract000000999M2 reg time0150000150150M2 overtime01010002020M2 subcontract000000999M3 reg    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students