Trexoid Inc. makes a popular v

Trexoid Inc. makes a popular video game console. Demand varies each month, with highest demand coming in the last quarter of the year. Regular production costs are $120 per unit and inventory carrying cost is $5 per unit per quarter. Overtime production cost is $150 per unit. Assume that the 10 current Trexoid employees can produce a total of 50,000 units per quarter in regular production and can work enough overtime hours to produce the amount required if a chase plan is employed. On the other hand, hiring cost is $5,000 per employee and firing cost is $10,000 per employee. Trexoid currently has zero inventory on hand, and they would like to have zero inventories at the end of the year. Assume hiring and layoff/firing, if necessary, occur at the beginning of the quarter. Forecasted demand is as follows:

Quarter 1 30,000 units
Quarter 2 20,000 units
Quarter 3 70,000 units
Quarter 4 120,000 units

a. Given the above demand estimate, develop a production plan based on level production. (Leave no cells blank – be certain to enter “0” wherever required.)
b. Determine the cost of the level production plan.
c. Given the planning information, develop a production plan based on chase production. (Leave no cells blank – be certain to enter “0” wherever required.)
d. Determine the cost of the chase production plan.

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

Posted in Uncategorized