### Production Strategy QuestionnaireThis interactive module helps explore different production strategies and their associated costs. Review each question and select the appropriate options from the dropdown menus.#### a. Level Strategy- **Question:** Produce utilizing a **level strategy** at 180 units, where the company incurs regular time production costs, inventory charges, and any costs due to the change in the production level from the previous output level. What is the cost of this strategy? - **Answer Selection:** [Dropdown menu]#### b. Back-order Requirement- **Question:** Was there a need to back-order? If so, how many units? - **Answer Selection:** [Dropdown menu]#### c. Mixed Strategy- **Question:** Produce utilizing a **mixed strategy** by producing 160 units every month. Then, utilize overtime and subcontracting to meet demand. (*Don't forget the capacity limitations on overtime and subcontracting.*) What is the cost of this strategy? - **Answer Selection:** [Dropdown menu]#### d. Overtime Costs- **Question:** Based on the mixed strategy, what was the cost of utilizing overtime? - **Answer Selection:** [Dropdown menu]#### e. Varying Workforce- **Question:** Based on a strategy of **varying the workforce** (Chase), what is the total cost? - **Answer Selection:** [Dropdown menu]#### f. Cost-Effective Strategy- **Question:** Which strategy provides the lowest cost solution? - **Answer Selection:** [Dropdown menu]This questionnaire is designed to help you understand and analyze the financial implications of different production strategies in a business setting. **ABC Wash, Inc. Production Planning Case Study****Context:**ABC Wash, Inc. manufactures commercial and industrial laundry machines, primarily used by hotels. The company faces the following monthly aggregate demand for the next six months: - Month M1: 220 units- Month M2: 195 units- Month M3: 210 units- Month M4: 212 units- Month M5: 230 units- Month M6: 205 unitsThe firm has a regular production capacity of 200 units per month and an overtime capacity of 20 units. Currently, subcontracting can supplement this with up to 40 additional units per month, but the availability of this option may change.Previous production output was 150 units with an inventory starting at 100 units.**Cost Information:**- Back-Ordering: $250 per unit per month- Inventory Holding: $100 per unit at the end of the month- Regular Time Production: $1,200 per unit- Subcontracting: $2,000 per unit- Overtime: $1,500 per unit- Cost of Increasing Units (Hiring): $200 per unit- Cost of Decreasing Units (Layoffs): $350 per unit**Problem Questions:**a. **Level Strategy Production Cost:** Produce utilizing a level production strategy at 180 units per month. Incur costs based on regular production, inventory holding, and capacity changes. Determine the total cost of this production strategy.b. **Back-Ordering Necessities:** Determine if there is a need to back-order during the six months. Calculate how many units need to be back-ordered if applicable.f. **Lowest Cost Strategy:** Assess various strategies to find the most cost-effective solution for production planning over the six-month period. Make your selection based on the provided data and constraints.This case study explores optimal production strategies under given constraints, enabling learners to analyze costs and develop decision-making skills related to operations management.

Find the Level Strategy below: a. The Cost of the strategy is $ 1380400 b. Back order Requirement:…

Answered: ABC Wash, Inc., makes commercial 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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Under a level strategy, variations in demand are managed by Question 11 options: using advertising and price changes. varying inventory levels. All of these choices are correct. varying the number of workers.
12:16 +1 (876) 474-5168 10/31/20, 5:53 PM Exercise 2: ABC analysis Perform an ABC analysis on the foilowing set of products. Annual Item Demand Unit Cost A211 1200 $9 $90 $6 $150 $2000 $120 $90 B390 100 C003 4500 D100 400 E707 35 F660 250 G473 1000 H921 100 $75 LUILOANS ICES
Break - Even Point in Units Chillmax Company plans to sell 3, 500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, varlable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the break-even pairs of shoes. 2. Check your answer by preparing a contribution margin income statement based on the break- even units. Enter all amounts as a positive number:
Q5: TechGear did not use Jane's proposal and decided to stay with the current vendor. The management recently has been selling the product in boxes, where a box includes 10 units. After looking into the sale data of 250 observations for a reorder period (or lead time, i.e., 3 business days), only 6 situations were found: either 21 boxes, 22 boxes, 23 boxes, 24 boxes, 25 boxes, or 26 boxes had been sold during a reorder period. The frequencies for each situation are listed below. The management has been using the above ROP in Q2 (ROP = 240). To achieve a service level of 90% or better, the management calculated the minimum safety stock (SS) needed (such SS = 0 if it is not needed). With this SS, there may be an impact on the inventory costs for the year due to the above safety stock. Is this possible impact an increase or decrease in the inventory costs of the year? What is the most possible amount of this impact (in $)? Boxes sold Units sold Frequency (observations) 21 210 20…
1. a) Zoey Enterprises manufactures solar engines for helicopters. Given the fuel savings available, new orders for 125 units have been made by customers requesting credit. The variable cost is $11,400 per unit, and the credit price is $13,000 each. Credit is extended for one period. The required return is 1.9 percent per period. If Zoey Enterprises extends credit, it expects that 30 percent of the customers will be repeat customers and place the same order every period forever, and the remaining customers will place one-time orders. Should credit be extended? 2. b) Now, assume that the probability of default is 15 percent. Should the orders be filled now? Assume the number of repeat customers is affected by the defaults. In other words, 30 percent of the customers who do not default are expected to be repeat customers.
Calculate the available-to-promise row in the following ma-trix.
8
Case Study 4: Inventory Management. I) A Furniture manufacturing company uses 1200 units of an item annually and the cost price is $250 per unit. The ordering costs are $600 per order and holding costs are $4.00 per item per annum. Required: Calculate the economic order quantity. Determine the number of orders per annum. Determine the annual stock holding cost. Determine the annual ordering cost.
2. Perform an ABC analysis for the data provided. Clearly explain why you classified items as A, B, or C. Annual Unit Item Usage 2400 Cost $19.51 $32.60 $10.20 $6.80 2 6200 3 8500 4 3200 6000 $4.50 $55.70 $3.60 $44.90 $35.62 750 7 8200 8 9000 5800 10 820 $82.60 $40.50 11 500 12 2000 $15.40 $14.60 $35.80 13 2400 14 6300 15 4750 $17.30 2700 $51.75 $42.90 $25.30 16 17 1600 18 1350 19 5000 $67.00 20 1000 $125.00
Tinker's 2020 cost of goods sold was $750,000 and 2019 cost of goods sold was $770,000. The inventory at the end of 2020 was $188,000 and $208,000 at the end of 2019. What was Tinker's inventory turnover during 2020? Group of answer choices A)3.79 b)3.99 C)3.84 D)3.89 E)None of the above
Answer 12.7a-c Please show detailed calculations or software output
2. Demand for Quiggly Pops (QP) follows an up and down pattern over the four quarters of a year, with peaks in the spring and winter months when special promotions are held. Production is handled by a highly-skilled local workforce during a regular 40-hour week (i.e., overtime and subcontracting are not used). The company likes to zero out its inventory at the end of a year so that it can start fresh each January. QP currently uses a level production strategy, but would like to evaluate other options. Create a production plan and calculate the cost of the plan for each strategy listed below. Which plan would you recommend to QP? (a) Level production (b) Chase demand Quarter Demand Forecast 1 70,000 2 100,000 3 50,000 4 150,000 Beginning workforce 40 workers Production rate per worker 1250 units/quarter Regular production cost $10 per unit Hiring cost $500 per worker Firing cost $500 per worker Holding cost $1 per unit per quarter

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