Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: demand forecast. Quarter Forecast 1 1,900 2 1,200 3 1,600 4 800 Costs/Other Data Previous quarter's output=1,200 cases Beginning inventory=0 cases Stockout cost of backorders=$160 per case Inventory holding cost=$40 per case at end of quarter Hiring employees=$35 per case Terminating employees=$80 per case Subcontracting cost=$65 per case Unit cost on regular time=$30 per case Overtime cost=$20 extra per case Capacity on regular time=1,900 cases per quarter John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: • Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. • Plan B: a level strategy. • Plan C: a level strategy that produces 1,100 cases per quarter and meets the forecast demand with inventory and subcontracting. Part 2 a) Which strategy is the lowest-cost plan? Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Quarter Forecast Production Hire (Units) Layoff (Units) 1,200 1 1,900 enter your response here enter your response here enter your response here
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.
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Quarter
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Forecast
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1
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1,900
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2
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1,200
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3
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1,600
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4
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800
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Costs/Other Data
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| Previous quarter's
output=1,200 cases
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| Beginning
inventory=0 cases
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| Stockout cost of
backorders=$160 per case
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Inventory holding
cost=$40
per case at end of quarter |
| Hiring
employees=$35 per case
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| Terminating
employees=$80 per case
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| Subcontracting
cost=$65 per case
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| Unit cost on regular
time=$30 per case
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| Overtime
cost=$20 extra per case
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| Capacity on regular
time=1,900 cases per quarter
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Part 2
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Hiring and Layoff Plan
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Quarter
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Forecast
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Production
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Hire
(Units)
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Layoff
(Units)
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1,200
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1
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1,900
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enter your response here
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enter your response here
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enter your response here
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Level Plan
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Quarter
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Forecast
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Production
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Ending Inventory
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Shortage
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Hire
(Units)
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Layoff
(Units)
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1,200
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1
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1,900
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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by Bartleby ExpertThe total cost, including normal time labor costs, for this hiring and layoffs plan is
(enter your response as a whole number).
by Bartleby Expertby Bartleby Expert
