1 for the soda galore problem discussed in the chapter, Ask an Expert

Management Studies

1. For the Soda Galore problem discussed in the chapter, assume that employees negoti- ate an increase in the regular production wage rate to $24.00 per hour and $36.00 per hour for overtime. Rework all aspects of the problem using the new wage rates.

2. Using the existing data in the solved problem (Neal Industries), assume that the over- time production wage rate is $24.00 per hour. Compute the cost of a chase plan using a stable workforce of 300 workers.

3. The Johnson Company manufactures expensive medical diagnostic equipment. It plans to meet all of its projected demand (given below for the next year by quarter). The firm plans to use a constant production rate of 300 units/quarter. Production costs are $20,000 per unit and holding costs are $2,000 per quarter per unit.

Quarter	1	2	3	4
Demand	200	300	400	300

What is the cost of this production plan?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91571124

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