The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:2,1002,200JanuaryFebruaryMarchApril56Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory Stockout cost of lost sales is $100 per unit. Inventory holding cost is$20 per unit per month. Ignore any idle-time costs. The plan is called plan B.Period Month Demand0DecemberJanuary12 February3March4 AprilMayJune7Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Subcontractingcapacity is limited to 800 units per month. Evaluate this plan by computing the costs for January through Augustin order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers)81,5001,7001,6001,700JulyAugustMayJuneJulyAugust1,5001,7001,6001,7002,1002,2001,9001,4001,9001,400Production1,4001,4001,4001,4001,4001,4001,4001,400EndingInventory200SubcontractUnits

Cost is the amount that is incurred by the company on producing goods and services by using raw…

Answered: The president of Hill Enterprises,…

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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LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming four quarters. Demand in each of the four quarters and production, overtime, and subcontracting capacities are reported in the table below, in addition to the feasible production plan. The relevant costs are: • Regular time production cost is $10/unit. Overtime production cost is $14/unit. Subcontracting cost is $18/unit Inventory is held at a cost of $1/unit/quarter. • Units may be backordered at a cost of $4/unit/quarter. Production Resource Regular Time Q1 Overtime Q1 Subcontract Q1 Regular Time Q2 Overtime Q2 Subcontract Q2 Regular Time Q3 Overtime Q3 Subcontract Q3 Demand in Quarter Demand in Quarter Q2 0 20 0 550 Q1 550 230 0 0 0 0 40 40 0 860 250 470 0 40 0 1330 What is the inventory cost for the year? What is the backorder cost for the year? What is the total cost for the year? Q3 0 0 0 0 0 30 510 160 0 700 What is the total overtime production cost for the year? Capacity 550 250 500…
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An investment proposal will have weekly fixed costs (FC) of $5,000, variable costs (v) of $35 per unit of output, revenue (R) of $55 per unit of output, and an effective capacity of 25 units per week. What is the monthly break-even quantity (QBEP)? Express in units. Assume a 4-week month. Multiple Choice 250 100 1,000 667
The table above provides the aggregate plan of production by a firm. It is known that the firm uses a level plan with backorders. Given this information, what is the number in the cell with the question mark?
Hotel Galway is a 50 room Boutique hotel in a pop-ular city break destination in Ireland. Until recently the hotel has priced each room at $120 for bed and breakfast. On aver-age 40 rooms are occupied every weekend. The variable cost of each occupied room is $30. Following an internal review man-agement has decided to try a revenue management approach, with rooms priced at $90 for bookings up to one week early and $180 for bookings within a week of their stay. It is esti-mated the hotel will sell 28 rooms at the lower price and 14 at the higher price. Variable costs will not change. Recommendwhich approach is the most feasible.
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May 2,100 January February 1,450 1,700 1,700 June 2,300 July 1,900 March April 1,700 August 1,300 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $65 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. Evaluate the following plan. This exercise contains only Plan E. Plan E: Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of the demand. Subcontract cost is $75 per unit. Month 10 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August Demand 1,450 1,700 1,700 1,700 2,100 2,300 1,900 1,300 Production (Units) 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 Plan E Ending Subcontract (Units) Inventory 200 The total subcontracting cost = $ (Enter your response as…
The table below contains monthly (six months) demand estimates and working days per month. Month Demand Production Days JAN 1,500 20 FEB 1,200 24 MAR 1,000 25 APR 1,600 25 MAY 1,100 20 JUN 1,300 26 For the implementation of “Level” strategy, the average demand (in units/day) over the six- month planning horizon is equal to; a. 40 b. 50 c. 55 d. 75
Company produce products and can produce at most 1, 005 units per month. Its current monthly production variables are a fixed cost of $55,000, a constant average variable cost of $2, 150 per unit, and a selling price of $2, 400 per unit By how much must the fixed cost change if the break-even rate is to be 320 units per month?
Please help me answer this question. Please provide solution/computation.
A company has the beginning workforce is 120 employees. The monthly output per employee is 100 units. The costs to hire and lay off a worker are $2,000 and $3,000, respectively. The cost to carry an item in inventory for one month is estimated at $10, and the stockout cost is $25 per unit. What is cost of the level sales and operations plan? Month 1 Demand 6,500 A) $224,000 B) $127,000 C) $291,000 D) $345,000 2 3 8,700 5,300 4 5 8,700 14,200 6 4,600 Total 48,000

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