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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Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 45% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,500 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $550 and a per loaf ingredient cost of $0.40. Current multifactor productivity for 640 work hours per month = loaves/dollar (round your response to three decimal places).
Handerson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 8.5 kilos 0.4 hours 0.4 hours Standard Price or The company reported the following results concerning this product in August. Actual output Raw materials used in production Purchases of raw materials Rate $ 6.00 per kilo $ 20.00 per hour $ 6.00 per hour 3,200 units 29,030 kilos 31,600 kilos Actual direct labor-hours 1,160 hours Actual cost of raw materials purchases $ 195,920 $ 22,736 Actual variable overhead cost $ 7,540 Actual direct labor cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for August is: Multiple Choice $5,440 F
The table gives the total cost schedule for oil changes at the local Jiffy Lube. What is Jiffy Lube's total fixed cost?
Thunderbird Manufacturing purchases a new stamping machine for $40,000. Its useful life is estimated to be 250,000 units with a salvage value of $5,000. Prepare a units-of-production (UOP) depreciation schedule based on the given annual usage (units produced) as shown below. chart attached
Explain the figures and mention the disadvantages and advantages of the following figures based on the operation management perspective: leading demand with an incremental expansion, leading demand with one-step expansion, lagging demand with incremental expansion, attempts to have an average capacity that straddles demand with incremental expansion
. Up, Up, and Away is a producer of kites and wind socks. Relevant data on a bottleneck operation in the shop for the upcoming fiscal year are given in the following table: Item Demand forecast Lot size Standard processing time Standard setup time Kites 30,000 units/year 20 units 0.3 hour/unit 3.0 hours/lot Wind Socks 12,000 units/year 70 units 1.0 hour/unit 4.0 hours/lot The shop works two shifts per day, 8 hours per shift, 200 days per year. Currently, the company operates four machines, and desires a 25 percent capacity cushion. How many machines should be purchased to eet the upcoming year's demand without resorting to any short-term capacity solutions?
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 45%in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand.The bakery currently makes 1,800 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $650 and a per loaf ingredient cost of $0.40. After increasing the number of work hours to 928 per month,what is the multifactor productivity =? loaves/dollar (round your response to…
QtyI Standard Labor Hour Raw Material Standard Labor 2 Hours Raw Material INDEPENDENT DEMAND Period 2 3 4 5 Total 6 Product A 1,000 1,000 1,000 1,000 1,000 1,000 6,000 Product B 500 500 500 1,500 15. The standard labor capacity required to support this plan is A. 9,000 hours B. 13,500 hours C. 18,000 hours D. 21,000 hours 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
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 55% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,600 loaves per month. Employees are paid $ 8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $ 850 and a per loaf ingredient cost of $ 0.35. Part 2 Current multifactor productivity for 640 work hours per month = enter your response here loaves/dollar (round…
WAI knows from historical records that approximately 40percent of its labor is used in Department 101 and 60 percentis used in Department 102. Th e reverse is true of machine time;60 percent is used in Department 101 and 40 percent is used inDepartment 102.(a) Calculate the labor and machine hours needed inDepartment 101 for each period of the MPS developed inProblem 4.(b) Calculate the labor and machine hours needed inDepartment 102 for each period of the MPS developed inProblem 4.
On the average, a firm has an 8-week lead time for work-in-process, and annual cost of goods sold is $12 million. Assuming that the company works 50 weeks a year: a. What is the dollar value of the work-in-process? b. If the lead time could be reduced to 6 weeks, what would be the reduction in WIP?
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.

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