1) Scheduling at Washburn Guitar View the video Scheduling at Washburn Guitar (10.40 minutes, Ctrl+Click on the link); what are your key takeaways (tie to one or more of the topics discussed in Chapters 11 and/or 16) after watching this video. Note: As a rough guideline, please try to keep the written submission to one or two paragraphs. 2) Bosa Limited, a specialist confectionary manufacturer, makes a variety of confectionary products candies in its manufacturing facility at Ulaanbaatar. Its line of confectionary products exhibits a highly seasonal demand pattern. The firm’s costs and quarterly sales forecasts are as follows: Costs: Hiring cost = $200 per worker, Firing cost = $600 per worker, Inventory carrying cost = $0.60 per pound per worker, Production per employee = 1000 pounds per quarter, Beginning workforce = 125 workers. Quarter Sales Forecast/ Demand(pounds) Production Spring 80,000 95,000 Summer 50,000 95,000 Fall 100,000 95,000 Winter 150,000 95,000 a) Compute a level production strategy for the firm. Quarter Demand Production Quarterly Inventory Change Ending Inventory Spring 80,000 95,000 Summer 50,000 95,000 Fall 100,000 95,000 Winter 150,000 95,000 Total b) Compute a chase demand production strategy for the firm. Quarter Demand Production Workers Needed (Beginning = 125) Workers Hired Workers Fired Spring 80,000 95,000 Summer 50,000 95,000 Fall 100,000 95,000 Winter 150,000 95,000 Total 380,000 380,000 c) Determine whether a level production or chase demand production strategy would more economically meet the firm’s demand for confectionery products.
1) Scheduling at Washburn Guitar
View the video Scheduling at Washburn Guitar (10.40 minutes, Ctrl+Click on the link); what are your key takeaways (tie to one or more of the topics discussed in Chapters 11 and/or 16) after watching this video.
Note: As a rough guideline, please try to keep the written submission to one or two paragraphs.
2) Bosa Limited, a specialist confectionary manufacturer, makes a variety of confectionary products candies in its manufacturing facility at Ulaanbaatar. Its line of confectionary products exhibits a highly seasonal demand pattern. The firm’s costs and quarterly sales forecasts are as follows: Costs: Hiring cost = $200 per worker, Firing cost = $600 per worker, Inventory carrying cost = $0.60 per pound per worker, Production per employee = 1000 pounds per quarter, Beginning workforce = 125 workers.
|
Quarter |
Sales Forecast/ Demand(pounds) |
Production |
|
Spring |
80,000 |
95,000 |
|
Summer |
50,000 |
95,000 |
|
Fall |
100,000 |
95,000 |
|
Winter |
150,000 |
95,000 |
- a) Compute a level production strategy for the firm.
|
Quarter |
Demand |
Production |
Quarterly Inventory Change |
Ending Inventory |
|
Spring |
80,000 |
95,000 |
|
|
|
Summer |
50,000 |
95,000 |
|
|
|
Fall |
100,000 |
95,000 |
|
|
|
Winter |
150,000 |
95,000 |
|
|
|
Total |
|
|
|
|
- b) Compute a chase demand production strategy for the firm.
|
Quarter |
Demand |
Production |
Workers Needed (Beginning = 125) |
Workers Hired |
Workers Fired |
|
Spring |
80,000 |
95,000 |
|
|
|
|
Summer |
50,000 |
95,000 |
|
|
|
|
Fall |
100,000 |
95,000 |
|
|
|
|
Winter |
150,000 |
95,000 |
|
|
|
|
Total |
380,000 |
380,000 |
|
|
|
- c) Determine whether a level production or chase demand production strategy would more economically meet the firm’s demand for confectionery products.
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