5. Formulate a level sales and operations plan for a company with the followingpredicted demand:MonthDemand6,30029,00036,00049,000515,00066,000Total51,300The beginning workforce is 125 employees. The monthly output per employee is150 units. The costs to hire and lay off a worker are $2,500 and $4,000, respectively.The cost to carry an item in inventory for one month is estimated at $10, and thestockout cost is $25 per unit. Show the production schedule, the inventory levels,and the changes in workforce from period to period. Compute the plan's cost.

Aggregate planning is a strategic process used in business and operations management to determine…

Answered: 5. Formulate a level sales and…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,400 May 2,200 February 1,500 June 2,100 March 1,800 July 1,700 April 1,700 August 1,700 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan A. Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $55 per unit. The cost of laying off workers is $75 per unit. Evaluate this plan. (Enter all responses as whole питbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,400 in February incurs a cost of…
Break-even analysis identifies output volume (number of units produced) when the total profit equals to A. Positive B. Minimum C. Negative D. 0
The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Month Month 1 July 2 August 3 September 4 October 5 November 6 December 1 2 3 September 4 October 5 November 6 December July August The total cost, excluding normal time labor costs, for Plan A = $ (Enter your response as a whole number.) Demand 1300 1150 1100 1600 1900 1200 Production 1,100 1,100 1,100 1,100 1,100 1,100 The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements…
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OQ17
Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 90,000; March 65,000; April 110,000; May, 55,000. Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1. Costs are hiring, $50 per new worker; layoff, $70 per worker laid off; inventory holding, $10 per unit-month; straight-time labor, $10 per hour; overtime, $15 per hour; backorder, $20 per unit a. Find the total cost of this plan?
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As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 2 springs, and 4 clamps. The base is assembled from 1 clamp and\ 1 housing. Each clamp has 1 handle and 2 castings.Each housing has 1 bearing and 2 shafts.There is no inventory on hand. C) Compute the net quantities needed if there are 25 of the base and 75 of the clamp in stock. (Product structure picture attached) Base = (?) units Spring = (?) units Clamp = (?) units Housing = (?) units Handle = (?) units Casting = (?) units Bearing = (?) units Shaft = (?) units
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1.Describe the overall frameworks for resource planning in both goods-producing and service-providing organizations. 2.Explain options for aggregate planning 3.Explain the three basic strategies for aggregate planning.

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