The aggregate demand for a product line for the next 6 months is given below. The firm has regular capacity of 120 units per month, overtime capacity for 40 more units per month, and subcontracting can supply up to 100 units per month. Month 1 2 3 4 5 6 Demand 220 160 200 210 200 190 Additional Data Previous output level 150 units Beginning inventory 100 units Shortage cost K250 per unit per month Inventory holding cost K100 per unit per month Regular time cost K1200 per unit Subcontracting cost K2000 per unit Overtime cost K1500 per unit Hiring workers to increase production level K200 per unit Firing workers to decrease production level K500 per unit Use the Chase Strategy and answer the following questions. a. What is the total cost of shortagesand the cost of overtime production? b. What is the cost of subcontracting? c. What is the cost of increasing production level?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
The aggregate demand for a product line for the next 6 months is given below. The firm has regular
capacity of 120 units per month, overtime capacity for 40 more units per month, and subcontracting
can supply up to 100 units per month.
Month 1 2 3 4 5 6
Demand 220 160 200 210 200 190
Additional Data
Previous output level 150 units
Beginning inventory 100 units
Shortage cost K250 per unit per month
Inventory holding cost K100 per unit per month
Regular time cost K1200 per unit
Subcontracting cost K2000 per unit
Overtime cost K1500 per unit
Hiring workers to increase production level K200 per unit
Firing workers to decrease production level K500 per unit
Use the Chase Strategy and answer the following questions.
a. What is the total cost of shortagesand the cost of overtime production?
b. What is the cost of subcontracting?
c. What is the cost of increasing production level?
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