Jose Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a "showpiece" for display in Mexican restaurants. His forecast of capacity and demand follows:DemandCapacityRegular timeOvertime114014020217015040Month313015020CostsRegular-time cost per unitOvertime cost per unitSubcontract cost per unitInventory holding cost per unit per month4230Subcontracting: 90 units available over the 5-month periodBeginning inventory: 0 unitsEnding inventory required: 10 unitsAssume that backorders are not permitted.Using the transportation method, the total cost of the optimal plan is $ (enter your response as a whole number).15020$90$115$128$4524016020

Production is the process of manufacturing the finished products using the raw materials and…

Answered: Jose Martinez of El Paso has developed…

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 industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits. Required: 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $8.70 per unit. However, fixed expenses would increase to a total of $642,060 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. 2. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety percentage. 3. Refer again to the data in…
What are total regular time costs?
A 126,000 square foot office building in Plano, Texas is fully leased to the Dr. Pepper Snapple Group at a base rent of $2.50 per square foot per month. The building’s expenses total $0.90 per square foot per month and an expense stop in the Dr. Pepper lease is set at $6.00 per square foot per year. What is the annual NOI? a. $3,024,000 b. $3,175,200 c. $3,780,000 d. $2,419,200
The James Lawson C hemical Supply Companyma nufactures and packages expensive vials of mercury. Giventhe following demand, supply, cost, and inventory data, allocateproduction capacity to meet demand at minimum cost usingthe transportation method. A constant workforce is expected.Backorders are permitted.
Management and forecasting of capacity is of greatest importance during which Product Life Cycle phase(s)? ⒸA. Decline B. Growth and Maturity ⒸC. Maturity D.Growth E. Introduction and Growth
What are the benefits of using a systems approach to capacity planning in inventory management ?
Show what would happen if this plan were implemented. (If the answer is void please enter 0, do not leave any fields blank.) Plan 1 2 3 4 Number of clients Hour required Regular time hours Undertime hours
a) GOT7 Soda Pop, Inc., has a new fruits drink. The production planner has assembled the following cost data and demand forecast as follow: [GOT7 Soda Pop, Inc., mempunyai minuman buah-buahan yang baru, Perancang pengeluaran telah mengumpul data tentang kos dan ramalan permintaan seperti berikut:] Quarter Demand 1,800 First Second 1,200 Third 1,600 Fourth 1,300 Table 1: Cost and demand forecast [Jadual 1: Kos dan ramalan permintaan] Previous quater's output 1,300 cases Beginning inventory 0 cases Stockout cost Inventory holding cost Hiring employees Terminating employees Subcontracting cost Unit cost on regular time Overtime cost RM150 RM40 per case at the end of quater RM40 per case RM80 per case RM60 per case RM30 per case RM15 extra per case You as the production planner need to develop an aggregate planning. You are required to: [Anda sebagai perancang pengeluaran perlu membangunkan perancangan agregat Anda dikehendaki untuk:] i) Assess plan A: strategy that hires and fires…
Describe how the common tools for capacity planningsuch as waiting-line models, simulation, and decisiontrees assist in capacity decisions.
Distinguish between effective capacity and actual output
XYZ Healthcare Center receives reimbursement from C.H.E.A.T.E.M. insurance company. XYZ receives P20 per physical therapy session. Each session lasts 15 minutes. Because of a shortage of physical therapists, XYZ often finds it necessary to use a temporary service to provide therapists. Assume collections and other variable cost amount to P3 per visit and all other facility costs are fixed. What is the most (per hour) XYZ should pay for physical therapist ?
1. What factors should be considered when selecting the appropriate capacity cushion? Howdoes the choice of capacity cushion relate to other decisions in operations management?To other functional areas? 2. Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?

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