Kchis2AF1NThe president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:JanuaryMay2,100June2,100FebruaryMarchJuly1,700AprilAugust1,400Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $125 per unit. Inventory holding cost is$20 per unit per month. Ignore any idle-time costs. The plan is called plan B.Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Subcontractingcapacity is limited to 700 units per month. Evaluate this plan by computing the costs for January through August.Calculator Ask my instructorIn order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers).0@2WSF2XHcommand#m3E30F3D$4C900888F4RFde L%5V20FSTG0Period Month Demand ProductionDecemberJanuaryFebruaryMarchAprilMay6June7July8 August123456B1,4001,7001,7001,800MacBook ProMF6YH&71,4001.7001,7001,8002,1002,1001,7001,400N999F7UJ1,4001,4001,4001,4001,4001,4001,4001,400*8DII-MEndingInventory200MKMFM3PBS8M(9DDF9<OIHSubcontractUnits).c0Lcommand4F10P^•.2:;Clear allCF11option{[?+ 11==..1Check answerF12◄}]delete▼1returnshi

Month Demand December - January 1400 February 1700 March 1700 April 1800 May 2100…

Answered: K The president of Hill Enterprises,…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Operation managemetn
The president'of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows January February 1,450 1,600 May 2,300 2,200 1,900 June March 1,700 1,700 July April August 1,300 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-lime costs. Evaluate the foilowing plan This exercise contains only Plan E Plan E Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of the demand Subcontract cost is $75 per unit. Plan E Production Subcontract Ending Inventory Month O December 1 January Demand (Units) (Units) 200 1,450 1,600 2 February 1,600 1,600 3 March 1,700 1,600 4 April 1,700 1,600 5 May 2,300 1,600 6 June 7 July 8 August 2,200 1,600 1,900 1,600 1,300 1,600 The total subcontracting cost = S (Enter your response as a…
10. The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: 2,100 January February 1,200 May 1,500 June 2,100 1,700 1,800 March July August 1,900 April 1,300 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan B. Plan B: Produce at a constant rate of 1,200 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Subcontracting capacity is limited to 900 units per month. Evaluate this plan by computing the costs for January through August. In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers).…
The forecasted demand for fudge for the next four months is 110, 140, 230, and 160 pounds. What is the recommended production rate if a level strategy is adopted with no backorders or stockouts? What is the ending inventory for month 4 under this plan? Round your answers to the nearest whole number. Production rate: pounds/month Ending inventory (month 4): pounds What is the level production rate with no ending inventory in month 4? Round your answer to one decimal place. Production rate: pounds/month
Caluclate Total Cost of Hirings
Calculate Total Cost of Stockout
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May 1,500 1,700 1,700 June 1,700 January February March April 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 $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement = 1800 units. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers). D₂₁ 0 December 1 January 2 February 3 March 4…
Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 90,000; March 65,000; April 110,000; May, 55,000. Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1. Costs are hiring, $50 per new worker; layoff, $70 per worker laid off; inventory holding, $10 per unit-month; straight-time labor, $10 per hour; overtime, $15 per hour; backorder, $20 per unit a. Find the total cost of this plan?
Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and Inventory with a stable workforce; stable means that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 80,640; March, 67,200; April, 100,280; May, 40,280. Productivity is four units per worker hour, eight hours per day, 21 days per month. Assume zero Inventory on February 1. Costs are: hiring, $50 per new worker, layoff, $70 per worker laid off, Inventory holding, $11 per unit-month; regular time labor, $12 per hour; overtime, $18 per hour; backorder, $22 per unit. Develop a production plan and calculate…
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June January February March April 7 July 8 August 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 plan. This exercise contains only Plan D. 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. Demand 1,450 1,600 1,600 1,700 1,450 1,600 1,600…

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