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Practical Management Science

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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Question

The following information relates to a company's aggregate production
planning activities:
Quarter Demand
Forecast
750
700
700
850
1
2
3
4
Beginning Workforce = 30 workers
Production per Employee = 25 units per quarter
Regular Production Cost = $5/unit
Hiring Cost = $89 per worker
Firing Cost = $283 per worker
Inventory Carrying Cost = $7 per unit per quarter
What is the total cost of the least expensive option between level and chase
demand strategies?

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please help me with Question 3 thanks! Demand forecasts for 2021 are as follows: Month Demand Jan 140,000 Feb 78,900 Mar 85,800 Apr 89,100 May 123,600 Jun 136,350 Jul 120,450 Aug 106,950 Sep 121,950 Oct 135,750 Nov 87,000 Dec 93,300 Each worker can produce 900 products per month and is paid $1500 per month. Assume that at the end of last year, the company has 100 employees working on the production line. Hiring and layoff (firing) decisions are made at the beginning of each month, and associated costs are charged at that time. It costs the company $400 to hire and $800 to lay off a worker. The company incurs holding cost for the amount of ending inventory in each month, and incurs backorder cost at the end of each month for any unfilled orders. The company incurs $2 per month for holding one unit in inventory and $4 per unit backorder. 1 Prepare a level aggregate plan. Under this level aggregate plan, how…
Given the following data: Inventory Holding Cost is $10/unit/month on ending inventory levels. Beginning inventory of Month 1 is 100 units. Hiring (Firing) Cost is $100 ($200) per worker. Each worker produces 10 units per month. There are 20 work persons on the payroll at the end of month 0. Month 1 2 3 4 5 6 Demand 300 300 400 300 300 400 What is the total cost of a chase strategy production plan?
I completed those steps and it is saying my answer is incorrect
The total planned expenditures is called as aggregate demand Select one: True False
7. Nowjuice, Inc., produces Shakewell fruit juice. A planner has developed an aggregate forecast for demand (in cases) for the next six months. Month May Jun Jul Forecast 4,000 4,800 5,600 Aug Sep 7,200 Oct 6,400 5,000 Use the following information to develop aggregate plans. Regular production cost Regular production capacity Overtime production cost Subcontracting cost Holding cost Beginning inventory $10 per case 5,000 cases $16 per case $20 per case $1 per case per month 0 Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan. Which plan has the lowest total cost? a. Use level production. Supplement using overtime as needed. b. Use a combination of overtime (500 cases per period maximum), inventory, and subcontracting (500 cases per period maximum) to handle variations in demand. c. Use overtime up to 750 cases per period and inventory to handle variations in demand.
The table below provides the aggregate plan of production by a firm. It is known that the firm uses a chase plan. The firm’s labor cost is $10/unit, hiring cost is $200 per unit of increase, and unit firing cost is $400 per unit of decrease in production. Given this information, what is the number in the cell with the question mark?
Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters. The number of available days of production and the anticipated demand are given below. Employees Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Demand Q1 2,400 6,019,000 They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below. 30 70 units/employee/quarter Q2 2,200 $1,000/unit $200/unit/quarter $1,500/unit <= 25% of Reg. Production Q3 1,700 Q4 1,800 Hire Cost Fire Cost Subcontracting Cost Subcontracting Limit Inventory Cost Initial Inventory $1,200/employee $800/employee $1,800/unit 400 units maximum $100/unit/quarter 280 units Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with inventory and backorders as needed. What is the total cost of this…
Caluclate Total Cost of Hirings
Exercise 3 Costs for a month in which it produced 800 units. The production manager was asked to review these costs and provide her best guess as to how they should be categorized. He responded with the following information: Total Costs Variable Costs Fixed Costs Material used in Production OMR 420000 420000 Labour, used in Production 214000 100000 114000 (Assembly and supervisor) Production Facilities cost( rent 115000 90000 250000 „Insurance, Utilities,.) Total production cost 749000 610000 139000 Required: A. Describe the production costs in the equation form Y = f + vX B. Assume Company intends to produce 1200 units next month. Calculate total production costs for the month.
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…
evelop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 9,700; winter, 8,000; spring, 7,000; summer, 11,700. Inventory at the beginning of fall is 485 units. At the beginning of fall you currently have 35 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 only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $80 for each temp; layoff, $160 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. In each quarter, produce to the full output of your regular workforce, even if that…
Complete the Table B on the following page to create the aggregate plan based on the chase production strategy including hiring and firing to meet demand exactly

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