A 012 wth0 esTstatdu2xal AMOHA JHO(A) 008A seiV i ds0BeiV :10ADVIEVINE ISVO3ASOS!CPOM XXXXXXXXXXX1839JAVDAA1sbrel fotolCASEEIGHT GLASSES A DAY (EGAD)Backlogs are not allowedThe EGAD Bottling Company has decided to introduce a new lineof premium bottled water that will include several "designer"flavors. Marketing manager Georgianna Mercer is predicting anupturn in demand based on the new offerings and the increasedpublic awareness of the health benefits of drinking more water.She has prepared aggregate forecasts for the next six months, asshown in the following table (quantities are in tankloads).Backordering costBeginning inventory0 tankloadsAmong the strategies being considered are the following:Level production supplemented by up to 10 tankloads amonth from overtime.A combination of overtime, inventory, and subcontracting.Regular production should be the same each month.MonthMay JunAug Sept Oct TotalUsing overtime for up to 15 tankloads a month, along withinventory to handle variations. Regular production should bethe same each month.Forecast 500870 4200906Production manager Mark Mercer (no relation to Georgianna) hasdeveloped the following information. (Costs are in thousands ofdollars.)QuestionRegular production cost$1 per tankloadRegular production capacity60 tankloadsOvertime production cost$1.6 per tankloadSubcontracting cost$1.8 per tankloadHolding cost$2 per tankload per month 7.9.3.93.HMGMT3213 Hom...Sydni JonesAutoSaversHOFormulasDataReviewViewHelpFileHomeInsertDrawPage LayoutConditional FormattingA.Gopn,ClipboardFormat as TableEditingAlignmentNumberCellsFontE Cell StylesStylesE31KN.F.H.C.E.B.1.2 PeriodMaySeptOctTotaluninr3 Forecast4 OutputRegular15 max/month5.15 max/monthOvertime6.Subcontract8 Output - Forecast9 InyentoryBeginningBuipu3Average111213 Backlog14 Costs:15RegularOvertimeSubcontract18Inventory19 Total2122 Strategy C: Using overtime for up to 15 tank loads a month, along with inventory to handle variations. Regular production should be the same each2324252731323435373840414243.4445

Note that, As mentioned in the questions, we have answered Strategy C alone.

Answered: Strategy C: Using overtime for up to 15…

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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You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 200 attendees. Assume that there is no inventory on ha nd of any of the items. Explode the bill of material. (Subscripts indicate the number of units required.)
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You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 300 attendees. Assume that there is no inventory on hand of any of the items. Explode the bill of material. (Subscripts indicate the number of units required.) K(1) L(5) M(3) J Determine the number of units of each item required. Item K: Item L: Item M:
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Operations Management
Lawn King produces a couple models of push lawn mowers. A total of 60 workers are currently employed to work on the assembly line. Hiring cost is $800 for each new employee, while the cost of laying off an employee is $1200. The production strategy in current use is a one-shift-per-day level strategy at average demand. Differences between demand and production are balanced by inventory and backorders. If a backorder occurs, the order is filled from the next available production run and safety stock is consumed if needed and replenished later. Lawn King utilizes a $7/unit carrying cost per month for inventory, and backorders have a cost of $10/unit per month. Production is estimated at 5 mowers per worker per shift, and the assembly line operates 20 working days (shifts) per month. Lawn King keeps 500 mowers as safety stock, which will be the beginning inventory for September. The regular time cost of production is $50 per lawn mower. [Hint: production = (# of…
. Terminator, Inc., manufactures a motorcycle part in lots of 250 units. The raw materials cost for the part is $150, and the value added in manufacturing 1 unit from its components is $300, for a total cost per completed unit of $450. The lead time to make the part is 3 weeks, and the annual demand is 4,000 units. Assume 50 working weeks per year. a. How many units of the part are held, on average, as cycle inventory? What is its value? b. How many units of the part are held, on average, as pipeline inventory? What is its value?
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