Scenario 8.3- MousetrapsA company faces the aggregate planning problem shown in the table below. Cost of regularproduction is $15 per unit, the cost of producing the same unit on overtime is $22.50, the costsubcontracting is $27 per unit, and the cost of carrying a unit in inventory from one month to the nextis $10.ForecastBeginning InventoryRegular TimeOvertimeSubcontractingEnding InventoryThe labor contract at the plant prohibits both overtime and subcontracting output to exceed 250units in any five-month window. The plant capacity is 20 units per day produced using two shifts andthe plant runs seven days a week. By policy, management wants to avoid stockouts.AugustWhich month has a positive ending inventory for the optimal aggregate plan for Scenario 8.3?SeptemberJuly800140O OctoberAugust September October November650 450550900November

This problem is related to aggregate planning. It is defined as a method for developing overall…

Answered: problem shown in the table below. Cost…

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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Prevar Corporation currently purchases components from one of its suppliers. The current purchase price is $1500 per component, with annual purchase volume of 750 units. The ops manager believes that this component could be made inhouse with some minor modifications to the current factory set up. Fixed cost for dedicating a line for this component is estimated at $50,000. Raw materials for the component is estimated at $900, overhead at $200 and it would take 10 hours of labor (at $20 per hour) to produce each component.
The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40 hours each per week, the BBBC production process usually produces 2,500 uniforms per week at a standard cost of $120 each. 68 employees work the first shift and 30 the second. The contract price is $220 per uniform. Because of the urgent need, BBBC is authorized to use around-the-clock production six days per week. When each of the two shifts works 72 hours per week, production increases to 3,800 uniforms per week but at a cost of $144 each. a. The multifactor productivity level for two shifts working 72 hours when compared to the level of the normal two shifts.
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
Materials requirement planning is most closely linked with which capacity module? Group of answer choices Rough cut capacity planning Capacity requirement planning Resource planning Master capacity scheduling
Exercise 3: Daily demand for a product of a computer manufacturer is 400,000 units. The company, on average, makes $150 net profit for each computer. The current fill rate is 86%. About 70% of their incomplete orders are back-ordered, and the rests are cancelled. The company is considering to improve the fill rate to 90% whose estimated daily additional operating cost (e.g.,improving the warehousing and transportation) is $2,000,000. What should be the minimum back-order cost to make this investment reasonable?
Dainty Ltd has an average weekly payroll of $200 000. The employees are entitled to 2 weeks', non- vesting sick leave per annum. Past experience suggests that 56% of employees will take the full 2 weeks' sick leave and 22% will take 1 week's leave each year. The rest of the employees take no sick leave.Calculate the expected annual sick-leave expense for Dainty Ltd (on the basis of average salaries)
Qty Standard Labor Hour Raw Material В Standard Labor 2 Hours Raw Material INDEPENDENT DEMAND Period 1 2 3 4 5 6 Total Product A 1,000 1,000 1,000 1,000 1,000 1,000 6,000 Product B 500 500 ,500 500 16. Products A and B are produced on two different dedicated production lines. If both lines work on the same shift schedule, the ratio of workers on line A to workers on line B is A. 2:1 В. 2:3 С. 2:5 D. 4:1
At Fraser engineering. Erix is trying to decide whether to purchase a certain part to to have it produced internally. Internal production could use either of two processes. One would entail a variable cost per unit of $17, and an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A has a price of $20 per-unit for any volume up to 30,000 units Vendor B has a price of $22 per-unit for demand of 1,000 units or less, and $18 per-unit for larger quantities. Vendor C offers a price of $21 per-unit for the first 1,000 units, and $19 for each additional unit. What is the correct formula to use to compare these options? Which options would be best for: I. 10,000 units? ii. 20,000 units? iii. 100,000 units? What is the value in considering these options across three very different demand values ranging from 10,000 to 100,000 units?
A small textile company makes several types of sweat-ers. Demand is very seasonal, as shown by the follow-ing quarterly demand estimates. Demand is estimated interms of standard hours of production required.An hour of regular time costs the company $12. Employees are paid $18 per hour on overtime, andlabor can be subcontracted from the outside at $14per hour. A maximum of 1000 overtime hours isavailable in any month. A change in the regular level of production (increase or decrease) incurs a one-time cost of $5 per hour for adding or subtracting anhour of labor. It costs 2 percent per month to carry an hour of finished work in inventory. Materials and overhead costs in inventory are equal to the directlabor costs. At the beginning of the fall quarter,there are 5000 standard hours in inventory and theworkforce level is equivalent to 10,000 standardhours.a. Suppose management sets the level of regular work-ers for the year equal to the average demand andsubcontracts out the rest. What is…
Find the constant workforce plan for the eight mont and total cost ?
Problem 2: Week Forecast Customer Orders Projected On-Hand Inventory MPS Available-to-Promise On-hand Inventory schedule production whenever projected on-hand inventory drops below MPS lot size Complete the master production schedule based on the following information 160 160 30 300 1 120 110 2 100 100 3 130 75 4 110 50 5 140 32 6 140 11 7 170 5 8 180 0

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