Ram Roy's firm has developed the following supply,demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportationmethod. What is the cost? Assume that the initial inventory has noholding cost in the first period and backorders are not permitted.supply availableperiodinitial inventoryregular-time cost per unitOvertime cost per unitsubcointract cost per unitcarrying cost per unit per month123Regular Tim overtime subcontrac demand forecast30353015$LA LA LA L$$$90.00110.00120.003.00151010555505040

Answered: Image /qna-images/answer/7db3e2b9-9d81-4309-9786-d5b95a780ae4.jpg

Answered: Ram Roy's firm has developed the…

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...

See similar textbooks

Similar questions

Hi, Pls provide answers. thank you.
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,400 May 2,300 February 1,700 June 2,100 March 1,600 July 1,900 April 1,700 August 1,300 Her operations manager is considering a new plan, which begins in January with 200units on hand and ends with zero inventory. Stockout cost of lost sales is $125per unit. Inventory holding cost is $25per unit per month. Ignore any idle-time costs. The plan is called plan B. Plan B: Produce at a constant rate of 1,300units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75per unit. Subcontracting capacity is limited to 1,000units per month. Evaluate this plan by computing the costs for January through August. Part 2 In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by…
Explore the concept of dynamic order quantity in the Wilson approach and how it adapts to changing demand patterns. Provide examples.
Develop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the following table*. Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 30 30 30 60 20 20 70 60 *Holding cost $1.50/unit/week; setup cost = $200; lead time = 1 week; beginning inventory = 40. Develop a lot-for-lot solution (enter your responses as whole numbers). Period 1 2 3 4 Gross requirements 30 30 On-hand at beginning of period 40 On-hand at end of period Order receipt Order release 72 68 53 30 60 20 8 9 10 11 12 20 70 60
Inventory Problem at Three Spoons Market Randy is the owner of Three Spoons Market. Three Spoons Market is an upscale tapas restaurant in a town of about 200,000 people. According to both Yelp and Trip Advisory, it is the highest restaurant in town. Randy had been having trouble with inventory management (he runs out some items while others go bad) and has brought you in as a consultant to help, due your background in inventory management. The menu at the restaurant changes monthly, and there are daily specials. Randy follows what other restaurant Owners are doing to improve their bottom line-he reads trade publication and online blogs. He also tries to keep up with trends in other industries that may help him manage better. He recently read about the success small-jobs have had with many managing inventory as A,B or C. As Randy thinks about his business, it is really a job shop, since food is prepared after the consumer orders from the menu. The food is prepared to customer tastes and…
Please help me with show all calculation thanku
Develop a EOQ solution and calculate total relevant costs for the gross requirements in the following table*. Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20 30 30 30 20 10 40 60 *Holding cost =$ 2.50/unit/week; setup cost =$ 150; lead time =1 week; beginning inventory =40. What is the average demand per week? with 2 decimal places): Calculate Economic Order Quantity (EOQ) Develop a EOQ solution (enter your responses as whole numbers). Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20 30 30 30 20 10 40 60 Scheduled receipt…
Costco also employs a just-in-time inventory management system, which includes sharing data directly with many of its largest suppliers. Companies like Kimberly-Clark calculate re-order points in real time and send new inventory, as needed, to replenish store shelves. Costco also works to redesign product packaging to squeeze more bulky goods onto trucks and shelves, reducing the number of orders Costco needs to place with suppliers.Occasionally, the company leverages its 75 million square feet of warehouse space to reduce purchasing costs. For example, when Procter & Gamble recently announced a 6% price increase for its paper goods, Costco bought 258 truckloads of paper towels at the old rate and stored them using available capacity in its distribution centers and warehouses.These inventory management techniques have allowed Costco to succeed in tough times while others have failed. Costco turns its inventory nearly 12 times a year, far more often than other retailers. With many…
ABC COMPANY uses graphical techniques in its aggregate planning efforts. Over the next 12 months (its intermediate period), it estimates the sum of demands to be 300,000 units. The firm has 300 production days per year. In February, which has 20 production days, demand is estimated to be 20,000 units. A graph of demand versus level production will show that: O O level production is approximately 900 units per month. level production of 1000 units per day is above the February requirement. the firm must hire workers between January and June. the February requirement is equal level production of 1000 units. level production is approximately 800 units per day.
Yu Amy Xia bas developed a specialized airtightvacuum bag to extend the freshness of seafood shipped to restaurants.She has put together the following demand cost data: You decides that the initial inventory of 250 units will incur the$0.20/unit cost from each prior quarter (unlike the situation inmost other companies, where a 0 unit cost is assigned).a) Find the optimal pla n using the transportation method.b) What is the cost of the plan?c) Does any regula r time capacity go unused? If so, how much in which periods?b) What is the extent of backordering in units and dollars?
A what is the inventory turnover for the hamburger patties? B. On average, how many days of supply are on hand?
Calculate MPS for all periods

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS