Sales & Operations Planning - LPA local firm manufactures children's toys. The projected demand over the next four months for one particular model of toy robot is given in the following table.MonthWorkdaysDemandJanuary233800February167200March202800April224400Assume that a normal day is eight hours. Hiring costs are $350 per worker and firing costs are $850 per worker. Holding costs are $4 per unit held per month. Additionally,assume that it requires an average of two hours for one worker to assemble one toy. Shortages are not permitted. It is given that the ending inventory for December was 900 ofthese toys and the manager wishes to have at least 800 units on hand at the end of April. Assume that the current workforce level is 35 workers. The firm wants to minimize itscost.Answer the following questions.1.Formulate the problem as a linear program. For simplicity, use the number from the questions instead of introducing parameter notations. Clearly define yourvariables and provide the objective function and constraints.2.By looking at the numbers, could the producer avoid hiring new workers?

SInce no shortages are allowed, this will be a chase strategy.

Answered: Sales & Operations Planning - LP A…

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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Which of the following is an outcome of keeping a constant level of production capacity while matching the predictable variability? Group of answer choices 1.Surplus of stock can appear during lull periods. 2.Shortage of stock can appear during peak periods. 3.There is no need to adjust the amount of production resources. 4.All of the above.
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Historical demands observed for the last 5 months are 1000, 2300, 3200, 1750, and 1200. To match the demand, the company placed respective orders of 1100, 2500, 4000, 1000, and 900 units. (a) Compute the variance of demand. (b) Compute the variance of orders. (c) Compute the bullwhip measure. Is there an amplifying or smoothing effect?
requirements over a typical six-month periöd are as 1 4 5. 6 Requirement 750 800 750 600 900 700 Produce # of Employees Hire Layoff Beginning Inventory Ending Inventory Average Inventory The current workforce level is 4 workers. Production rate is 150/worker/month. The following costs apply:Wages = $2,000/worker/month Hiring cost - $200/worker Layoff Cost = $250/worker Inventory holding cost = $1/unit/month Back ordering cost - $2/unit/month If a Level strategy is used, what is the total inventory cost, which includes inventory holding cost and back ordering cost? First, you need to determine the quantity to produce every period. 00s O O 1100 O 450 O 900 3. 2.
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?
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Peet’s Coffees in Menlo Park, California, sells Melitta Number 101 coffee filters at afairly steady rate of about 60 boxes of filters monthly. The filters are ordered from asupplier in Trenton, New Jersey. Peet’s manager is interested in applying some inventorytheory to determine the best replenishment strategy for the filters.Peet’s pays $2.80 per box of filters and estimates that fixed costs of employee timefor placing and receiving orders amount to about $20. Peet’s uses a 22 percent annualinterest rate to compute holding costs.a. How large a standing order should Peet’s have with its supplier in Trenton, and howoften should these orders be placed?
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…
Please do not give solution in image format thanku In 2018, the government of Ghana launched operation one district one factory (IDIE). Based on IDIF, Ekumfi Pineapple Factory Co. Ltd (EPF) was launched. In 2019 the management of ERF started production with 100 workers per shift, each of the three shifts working 8 hours per day. Every working day the payroll cost was GHIC 20,000 and overhead expenses amounted to GHC 5000 and material cost GHC 4000. At the end of the first year, the company produced 1,000,000 boxes of pineapple juice. During the second year, EPF acquired a loan from Exim Bank to purchase a new plant. After the introduction of the new plant, the management reduced the size of its workers per shift to 80, each working 8 hours per day, with the payroll cost reducing to GHC 18,000 and overhead expenses also reducing to GHC 4000 and material cost rising to GHC 6000. Production rose to 1,200,000 boxes. Regard yourself as the Operations Manager of EPF: a) What are the…
Please do not give solution in image formate thanku. Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall, you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stock outs at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $100 for each temp; layoff, $200 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season.

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