The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturing requirements (in gallons) for the next four quarters are60,000, 90,000, 90,000, and 140,000 respectively. A level workforce is desired, relying only on anticipation inventory as a supply option. Stockouts andbackorders are to be avoided, as are overtime and undertime.a. Determine the quarterly production rate required to meet total demand for the year, and minimize the anticipation inventory that would be left over at the endof the year. Beginning inventory is 0.The quarterly production rate is 95000 gallons. (Enter your response as an integer.)b. Specify the anticipation inventory that will be produced. (Enter your responses as an integers.)QuarterAnticipationQuestion Viewer inventory (gallons)1234

Explanation for a: The quarterly production rate can be calculated by dividing the annual demand…

Answered: The Donald Fertilizer Company produces…

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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The Donald Fertilizer Company produces industrial chemi-cal fertilizers. The projected manufacturing requirements (inthousands of gallons) for the next four quarters are 90, 60,90, and 140, respectively. A level workforce is desired, relyingonly on anticipation inventory as a supply option. Stock-outs and backorders are to be avoided, as are overtime andundertime.a. Determine the quarterly production rate required to meettotal demand for the year, and minimize the anticipationinventory that would be left over at the end of the year.Beginning inventory is 0.b. Specify the anticipation inventory that will be produced.c. Suppose that the requirements for the next four quartersare revised to 60, 90, 140, and 90, respectively. If total de-mand is the same, what level of production rate is needednow, using the same strategy as part (a)?
Jill wants you to consider a hybrid aggregate plan, usingup to the maximum overtime per employee for any periodwhere demand cannot be satisfi ed with the current regular-timeproduction and the available inventory. Back orders can occur.(a) Show what would happen if this plan were implemented.(b) Calculate the costs associated with this plan.(c) Evaluate the plan in terms of cost, customer service,operations, and human resources
The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturing requirements (in thousands of gallons) for the next four quarters are 80, 50, 80, and 130, respectively. A level workforce is desired, relying only on anticipation inventory as a supply option. Stockouts and backorders are to be avoided, as are overtime and undertime.a. Determine the quarterly production rate required to meet total demand for the year, and minimize the anticipation inventory that would be left over at the end of the year. Beginning inventory is zero.b. Specify the anticipation inventory that will be produced.c. Suppose that the requirements for the next four quarters are revised to 80, 130, 50, and 80, respectively. If total demand is the same, what level of production rate is needed now, using the same strategy as part (a)?
Although the BackPack Company has always used a levelaggregate plan, Jill is interested in evaluating chase aggregateplans also. She has asked you to calculate how many hires and fi reswould be necessary to adjust capacity to meet demand exactlyeach period. If necessary, incur some undertime. Calculate thenumber of workers needed each period.
1. Foxie Owl’s Besty Bagel shop makes fresh bagels. She has to buy raw materials fresh every day for selling on that day. She wants to know exactly how much should she spend on raw materials. Foxie did some analysis over the past month and came back with the following numbers: Daily demand was equally likely to be 200, 225, 250, 275, or 300 bagels. What should be the number of bagels on hand to satisfy a Fill Rate requirement of 96%, rounded to next integer value? Group of answer choices 300 275 286 263 2. Suppose that instead of a discrete demand distribution, Foxie’s shop determines that the daily demand for bagels is normally distributed, with a mean of 250 and a standard deviation of 35. Foxie still wants a Fill Rate of 98%. What is the appropriate level of on-hand inventory for Foxie’s shop? Group of answer choices 263 274 257 270
A small company produces recreational vehicles. The (in units): Mar Apr May Jun Jul Aug Sep 50 Total Month 359 Forecast 55 60 60 40 50 44 Use the following information: Regular labour cost $240 per unit Overtime labour cost $360 per unit Regular capacity 40 units per month, using 5 workers Overtime capacity 8 units per month Holding cost $30 per unit per month Back-order cost $100 per unit per month Beginning inventory Desired ending inventory 0 Hiring cost $2,000 per worker Develop the minimum cost production plan and compute its total cost.
Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, washing, slicing, preserving, and finally packaging the prepared lettuce. Together, with help from vendors, they think they can adequately estimate demand, fixed costs, revenues, and variable cost per bag of lettuce. They think a largely manual process will have monthly fixed costs of $40,000 and variable costs of $2.00 per bag. A more mechanized process will have fixed costs of $72,000 per month with variable costs of $1.25 per bag. They expect to sell the shredded lettuce for $3.00 per bag. a) The break-even quantity in units for the manual process = enter your response here bags (round your response to the nearest whole number). b) The revenue…
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The demand information is given below. Month Demand Jan Feb Mar Apr May Jun 1,900 2,900 4,800 5,800 5,800 1,950 A worker can produce 25 units per month. Assume that the beginning inventory in January is 800 units, and the firm desires to have 150 units of inventory at the end of June. a. Use a chase production strategy to compute the monthly production, ending inventory/(backlog) and workforce levels. Do not round intermediate calculations. Round your answers to the nearest whole number. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". Month Demand Jan 1,900 Feb Mar Apr May Jun 2,900 4,800 5,800 5,800 1,950 Production 1100 2900 4800 5800 5800 2100 Ending inventory 800 0 150 Workforce 44 116 192 232 232 84 b. Use a level production strategy to compute the monthly production, ending inventory/(backlog) and workforce levels. Do not round intermediate calculations. Round your answers to the nearest whole number. Use a minus sign to enter a negative…
Helter Industries, a company that produces a line of women's bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps can be hired when needed and can be used as needed, whereas the full-time employees must be paid whether they are needed or not. Each full-time employee can produce 205 suits, while each part-time employee can produce 165 suits per month. Demand for bathing suits for the next four months is as follows: MAY JUNE JULY AUGUST 3,200 2,800 3,100 3,000 Beginning inventory in May is 403 (a complete two-piece includes both top and bottom) bathing suits. Bathing suits cost $40 to produce and carrying cost is 24 percent per year. Develop an aggregate plan that uses the 12 full-time employees each month and a minimum number of temporary employees. Assume that all employees will produce at their full potential each month. Calculate the inventory…
The demand information is given below. Month Jan Feb Mar Apr May Jun Demand 1,900 2,800 4,700 5,600 5,600 1,750 A worker can produce 25 units per month. Assume that the beginning inventory in January is 450 units, and the firm desires to have 300 units of inventory at the end of June. Use a chase production strategy to compute the monthly production, ending inventory/(backlog) and workforce levels. Do not round intermediate calculations. Round your answers to the nearest whole number. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". Month Jan Feb Mar Apr May Jun Demand 1,900 2,800 4,700 5,600 5,600 1,750 Production Ending inventory 450 Workforce Use a level production strategy to compute the monthly production, ending inventory/(backlog) and workforce levels. Do not round intermediate calculations. Round your answers to the nearest whole number. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". Month Jan Feb Mar…
A Pizza Company has a demand forecast for the next 12 months that is shown in Table 1 The current workforce of 100 staff can produce 1500 cases of pizzas per month. (a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan? (b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10 per cent greater than normal working hours? Table 1 demand forecast Month Demand (cases per month) January 600 February 800 March 1000 April 1500 May 2000 June 1700 July…

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