EE Company has the following aggregate demand requirements and data for the upcoming four quarters. Which of the following production plans has lower cost, Plan A using chase demand or Plan B using pure level strategy or C using 1350 evel with subcontracting if needed. * Period 1 Demand Previous output 1300 units 1,400 Beginning Inventory O units Inventory holding cost Hiring workers 1,200 P10.00 1,600 P40.00 1.500 Stockout cost P50.00 12 34

EE Company has the following aggregate demand requirements and data for the upcoming four quarters. Which of the following production plans has lower cost, Plan A using chase demand or Plan B using pure level strategy or C using 1350 evel with subcontracting if needed. * Period 1 Demand Previous output 1300 units 1,400 Beginning Inventory O units Inventory holding cost Hiring workers 1,200 P10.00 1,600 P40.00 1.500 Stockout cost P50.00 12 34

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Similar questions

Assume material A calls out material B (qty per = 1). Material A has a stock quantity of 10. Material A has a demand for 100 due on 7/1 and there is an order for 90 with a due date of 7/1 and start date of 6/15. What is the requirement QUANTITY that will be generated for product B?
a. Produce utilizing a level strategy at 180 units in which 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? [Select] b. Was there a need to back-order? If so, how many units? [Select] c. 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? [Select] d. Based on the mixed strategy, what was the cost of utilizing overtime [Select] e. Based on a strategy of varying the workforce (Chase), what is the total cost? [Select] f. Which strategy provides the lowest cost solution? [Select]
Complete the master production schedule (enter your responses as whole numbers). On-hand inventory at end of week 1: 190 Week Forecasted demand Booked orders Projected ending inventory Master production schedule Available to promise 2 280 125 680 770 3 400 170 280 4 290 265 640 650 5 250 150 390 6 260 265 965 840 7 250 240 715 8 290 125 1295 870 555 9 310 190 985
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
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 4,240 February 4,340 March 4,040 April 4,440 May 5,040 June 4,740 July 5,340 August 4,940 September 5,440 October 5,740 November 6,335 December 6,030 a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 4 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round…
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…
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For the following bill of material, if we need to produce 10 units of finished product P, how many component C do we need? Assume there is no on-hand inventory. P M(3) 80 0 120 O 16 40 160 N(4) B(3) C(4) D(5) C(4)
1. Using the data provided here for problem 1. Calculate the following: 6 7 8 | 9 Week Demand 1| 2 3 4 5 2554 2333 4678 4525 2243 2988 2301 3777 3245 2122 2987 2487 2567 10 11 12 13 a. Average weekly demand. b. Target inventory for 98% Inventory Service Level for this period if you get replenished with new inventory every two weeks. Formulas used: a. b.