Question

The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time sto

What are the numbers for subcontract (units) for the picture above?

The total cost, excluding normal time labor costs, for Plan A = $___?(enter response as a whole number)

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Answer #1

Answer:

Subcontract Units (SU) = Demand - Production

July: SU = 1300 - 1100 = 200

Aug: SU = 1150- 1100 = 50

Sep: SU = 1100 - 1100 = 0

Oct: SU = 1600 - 1100 = 500

Nov: SU = 1900 - 1100 = 800

Dec: SU = 1900 - 1100 = 800

Total Subcontract Units = 200 + 50 + 500 + 800 + 800 = 2350 units

Total Cost for Plan A = Total Subcontract Units*Subcontract Cost per unit = 2350*60 = $141000

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