8. An operations planner, Lovell Bradley, is developing a sales and operations plan that involves backorders. The company's demand and production rates for the next four periods are as follows:Period1234Demand8,20010,0007,0006,600Production8,0008,0008,0007,600Beginning inventory at the start of period 1 is 400 units. Calculate beginning inventory, end-ing inventory, average inventory, and the back order amount, if any, for each of the next fourperiods.

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Answered: An operations planner, Lovell Bradley,…

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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A Company is interested in developing a quarterly aggregate production plan but they are not sure if a level strategy with backorders or a chase strategy would be better. They have the following information available regarding their production operation: Hiring workers Layoff workers Inventory holding Cost Stockout cost for backorders Production (Labor) cost Subcontracting cost Previous quarter's production Beginning inventoy Quarter forecasts are 2000, 6000, 4000, 5000, respectively. This problem has questions. Suppose that you want to use a level plan with backorders (one that produces at the average demand over the four quarters). Answer the next two questions using this plan. Do not round your intermediate calculations. Round your final answer to the nearest whole number. What would be your production rate each month? A. 4250 B. 3500 C. 4250, 3000, 4000, 5000 D. 2000, 6000, 4000, 5000 What is the ending inventory in Quarter 2 A. 500 B. 2250 C. 2500 D. 0 Suppose that you want to use…
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 2 clamps and 1 housing. Each clamp has 1handle and 1 casting. Each housing has 2 bearings and 2 shafts. There is no inventory on hand. c) Compute the net quantities needed if there are 25 of the base and 100 of the clamp in stock. Base: units (enter your response as a whole number). Spring: units Clamp: units Housing: units Handle units Casting: units Bearing: units Shaft: units
On August, a light business bought $3600 worth of lamps. At the beginning of September, the store had $1400 in lights on hand, and by the end of September, it projected to have $1600 in lamps on hand to meet some of the forecasted October sales. And what's the August planned cost of goods sold?
Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) January 4,150 February 4,250 March 3,950 April 4,350 May 4,950 June 4,650 July 5,250 August 4,850 September 5,350 October 5,650 November 6,250 December 5,950 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this…
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January February 4,100 4,200 March 3,900 April 4,300 May 4,900 June 4,600 July 5,200 August 4,800 September 5,300 October 5,600 November 6,200 December 5,900
Green Gardens' owner has asked your advice about a possible problem at his business. Over the last 6 months the large-sized lawn and garden inventory (ie, tables, chairs, planters, etc.) has appeared to be short. The inventory records that employees use to determine what is on hand show that more inventory is available than can actually be located. This has cause frustration and mis-trust in the inventory records for the sales employees. The owner realizes that the problem is bigger than just frustrated employees. He is afraid that inventory is being stolen, a problem he didn't think possible given that these are large items that are not easily moved. Requirements: Provide the owner with two internal controls that he could implement to reduce the likelihood of theft of the lawn and garden inventory.
A stock or s+ Туpe Chase Production Plan: Example • Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a regular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine. • Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than regular capacity. 3. 4. 7 8. MONTH 1 140 120 125 125 140 135 Forecast 120 135 Chase Production Plan Calculation
ABC COMPANY uses graphical techniques in its aggregate planning efforts. Over the next 12 months (its intermediate period), it estimates the sum of demands to be 300,000 units. The firm has 300 production days per year. In February, which has 20 production days, demand is estimated to be 20,000 units. A graph of demand versus level production will show that: O O level production is approximately 900 units per month. level production of 1000 units per day is above the February requirement. the firm must hire workers between January and June. the February requirement is equal level production of 1000 units. level production is approximately 800 units per day.
Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time, overtime, subcontract and backorders. Regular time is limited to 150 units per month (Cost per Unit-$30). Overtime is limited to a maximum of 20 units per month (Cost per Unit-$45). Units purchased from the subcontractor (Cost per Unit = $54) cannot exceed 70 per month and the total purchases from the subcontractor over the 6 month period cannot be over 220 units. Backorders cannot exceed 60 units in any given month (Cost per Unit - $5) and must be no more than 10 in Period 6. Average Inventory Holding cost per Unit = $10. Forecasted Demand as well as Beginning and desired Ending Inventory are listed in the table below. Regular Output Overtime Output Subcontract Beginning Inventory Month Total Available for Sale Less Forecast Plus Backlog-Current Period Less Backlog-Previous Period Ending Inventory Average Inventory 20 190 1 170 2 3 270 180 4 160 190 10 6 Total Required:…
Yu Amy Xia bas developed a specialized airtightvacuum bag to extend the freshness of seafood shipped to restaurants.She has put together the following demand cost data: You decides that the initial inventory of 250 units will incur the$0.20/unit cost from each prior quarter (unlike the situation inmost other companies, where a 0 unit cost is assigned).a) Find the optimal pla n using the transportation method.b) What is the cost of the plan?c) Does any regula r time capacity go unused? If so, how much in which periods?b) What is the extent of backordering in units and dollars?
evelop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 9,700; winter, 8,000; spring, 7,000; summer, 11,700. Inventory at the beginning of fall is 485 units. At the beginning of fall you currently have 35 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $80 for each temp; layoff, $160 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quarter, produce to the full output of your regular workforce, even if that…
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 2,100 February 1,700 June 2,100 March 1,600 July 1,700 April 1,900 August 1,500 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 $60 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. Evaluate the following plans D and E. 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 $50 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.…

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