PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below:
Supply/Demand Info Beginning Jan Feb Mar Apr May Jun
Forecast (demand) 63,200 64,400 49,800 60,600 57,400 60,000
Regular production
Overtime production
Subcontract production
Ending inventory 7,600
Hired employees
Fired employees
Total employees 180
Cost variables are as follows:
Cost Variables
Labor cost/hour $14
Overtime cost/unit $39
Subcontracting cost/unit $36
Holding cost/unit/month $9
Hiring cost/employee $2,700
Firing cost/employee $6,000
Here is some additional relevant (capacity) information:
Capacity Information
Total labor hours/SSD 4
Regular production units/employee/month 200
Max regular production/month 55,400
Max overtime production/month 3,800
Max subcontractor production/month 5,800
Assuming the company ONLY uses overtime and/or subcontract production if regular production capacity is not sufficient, answer the following questions: