PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below:Supply/Demand InfoFebMarJun49,00051,20049,000Forecast (demand)Regular productionOvertime productionSubcontract productionEnding inventoryHired employeesFired employeesTotal employeesCost variables are as follows:Cost VariablesLabor cost/hourOvertime cost/unitSubcontracting cost/unitHolding cost/unit/monthHiring cost/employeeFiring cost/employeeBeginning Jan45,0007,200160$19$34$31$11$3,700$5,800Here is some additional relevant (capacity) information:Capacity InformationTotal labor hours/SSDRegular production units/employee/monthMax regular production/monthMax overtime production/monthMax subcontractor production/month320056,6003,0004,200Apr May62,60045,600 Assuming the company uses regular production first, then ONLY overtime and/or subcontract production, answer the following questions:What is the regular production cost (over the six months from January through June) for a CHASE production plan? (Display your answer to the nearestwhole number.)NumberWhat is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.)NumberWhat is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.)NumberWhat is the total holding cost for this production plan? (Display your answer to the nearest whole number.)NumberWhat is the total hire cost for this production plan? (Display your answer to the nearest whole number.)NumberWhat is the total fire cost for this production plan? (Display your answer to the nearest whole number.)NumberWhat is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.)Number

Chase plan means producing only as much required i.e. keeping the inventory to minimum levels i.e.…

Answered: PP.52 A manufacturer of solid state…

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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7. Nowjuice, Inc., produces Shakewell fruit juice. A planner has developed an aggregate forecast for demand (in cases) for the next six months. Month May Jun Jul Forecast 4,000 4,800 5,600 Aug Sep 7,200 Oct 6,400 5,000 Use the following information to develop aggregate plans. Regular production cost Regular production capacity Overtime production cost Subcontracting cost Holding cost Beginning inventory $10 per case 5,000 cases $16 per case $20 per case $1 per case per month 0 Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan. Which plan has the lowest total cost? a. Use level production. Supplement using overtime as needed. b. Use a combination of overtime (500 cases per period maximum), inventory, and subcontracting (500 cases per period maximum) to handle variations in demand. c. Use overtime up to 750 cases per period and inventory to handle variations in demand.
The units of Manganese Plus available for sale during the year were as follows: Mar. 1 June 16 Nov. 28 Inventory Purchase Purchase 23 units @ $29 32 units @ $30 42 units @ $36 97 units $667 960 1,512 $3,139 There are 14 units of the product in the physical inventory at November 30. The periodic inventory system is used. a. Determine the inventory cost by the FIFO method. $ b. Determine the inventory cost by the LIFO method. $ c. Determine the inventory cost by the weighted average cost methods. Round intermediate calculations and final answer to two decimal places.
Q7. The president of Rose Bowl Enterprises, Desmond Howard, projects the firms aggregate DEMAND requirements over the next 8 months as follows: These are the monthly DEMAND, not production. MONTH JAN FEB MAR APR MAY JUN JULY AUG DEMAND 1,400 1,600 1,800 1,800 2,200 2,200 1,800 1,800 PRODUCTION 1,600 from December INVENTORY 200 from Dec plus 200 His operations manager is considering a new plan, which begins in January with 200 units 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 A. Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand was given as 1,600 units per month. Therefore, the production for JAN will be 1,600. However, only 1,400 are needed. Therefore, the extra 200 produced go into inventory and there is a holding cost for inventory. Also, per the above, you already have 200 units in inventory…
4 (Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the Expected Monetary Value (EMV)? Alternatives Large Inventory Small Inventory Probability A) $68,400 O B)-$20,000 O C) $10,000 O D) $51,500 O E) $78,400 Large Crowd $220,000 $90,000 .20 PROFIT ($) Average Crowd $50,000 $70,000 .50 Small Crowd -$2,000 -$5,000 30
10

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