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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In the context of an Accident and Emergency Department, high demand variation can be addressed by having: Select one alternative: Yield Management. Over staffing and preferential access. Marketing. Standby capacity and flexible staffing. Demand management.
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 $125 per unit, inventory carrying costs of $20 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 1,200 units per month and subcontract additional units at a $60 per unit premium cost. Subcontracting capacity is limited to 500 units per month. (Enter all responses as whole numbers). Month Demand Production Ending Inventory Subcontract (Units) 1 July 1200 1,200 0 Insert 2 August 1300 1,200 0 Insert 3 September 1200 1,200 0 Insert 4 October 1700 1,200 0 Insert 5 November 1650 1,200…
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…
strategy can be used to adjust the capacity for seasonable demand.
Break-even analysis identifies output volume (number of units produced) when the total profit equals to A. Positive B. Minimum C. Negative D. 0
Please answer may questions as possible as you can. Time running Thank you❤
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March 1,600 1,700 1,800 April 1,700 Month 0 December 1 January 2 February 3 March 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 $70 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. Evaluate the following plans D and E. 4 April 6 May 6 June Plan D: Keep the current workforce stable at producing 1,600 units per month. In addition to the regular production, another 20% of the normal production units can be produced in overtime at an additional cost of $55 per unit. A warehouse now constrains the maximum allowable inventory on hand to 600 units or less. Note: Do not produce in overtime if production or inventory are adequate to cover demand. 7 July 8 August Demand 1,500 1,700 1,800 1,700 2,100 2,100 1,800 1,500…
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…
The Morning Brew Coffee Shop sells Regular, Cappuccino, and Vienna blends of coffee. The shop's current daily labor cost is $320, the equipment cost is $125, and the overhead cost is $225. Daily demands, along with price and material costs per beverage, are given below: Regular Vienna Cappuccino Coffee coffee Beverages sold Price per beverage 400 150 100 $2.00 $3.00 $4.00 Material per beverage ($) $0.50 $0.75 $1.25 Harald Luckerbauer, the manager at Morning Brew Coffee Shop, would like to understand how adding Eiskaffee (a German coffee beverage of chilled coffee, milk, sweetener, and vanilla ice cream) will alter the shop's productivity. Her market research shows that Eiskaffee will bring in new customers and not cannibalize current demand. Assuming that the new equipment is purchased before Eiskaffee is added to the menu, Harald has developed new average daily demand and cost projections. The new equipment cost is $200, and the overhead cost is $350. Modified daily demands, as well…
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What is the BOM stock needed for the shoe department for April if the sales are planned at $64,000 and the stock to sales ratio is 18.3?
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