The Westerbeck Company manufactures several models of automatic washers and dryers. The projected requirements over the next year for their washers are shown in the table below: Month & Requirement January - 710    February - 1090    March - 880    April - 690    May - 1400    June - 1130    July - 1550    August - 1020    September - 530    October - 390    November - 980    December - 1210 Current inventory is 140 units. Current capacity is 1,030 units per month. The average salary of production workers is $1,150 per month. Material costs $140/unit. Each production worker accounts for 35 units per month. Overtime is paid at time and a half. Any increase or decrease in the production rate costs $40/unit for tooling, setup, and line changes. This does not apply, however, to overtime. Inventory-holding costs are $30 per unit per month. Lost sales are valued at $70 per unit. Compare the costs of level and chase demand production plans using the Agg Plan – Level and Agg Plan – Chase Excel templates. Round all your answers for cost values to the nearest cent and all other answers to the nearest whole number. Do not round intermediate calculations. If your answer is zero, enter "0".

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The Westerbeck Company manufactures several models of automatic washers and dryers. The projected requirements over the next year for their washers are shown in the table below:

Month & Requirement

January - 710    February - 1090    March - 880    April - 690    May - 1400    June - 1130   

July - 1550    August - 1020    September - 530    October - 390    November - 980    December - 1210

Current inventory is 140 units. Current capacity is 1,030 units per month. The average salary of production workers is $1,150 per month. Material costs $140/unit. Each production worker accounts for 35 units per month. Overtime is paid at time and a half. Any increase or decrease in the production rate costs $40/unit for tooling, setup, and line changes. This does not apply, however, to overtime. Inventory-holding costs are $30 per unit per month. Lost sales are valued at $70 per unit. Compare the costs of level and chase demand production plans using the Agg Plan – Level and Agg Plan – Chase Excel templates. Round all your answers for cost values to the nearest cent and all other answers to the nearest whole number. Do not round intermediate calculations. If your answer is zero, enter "0".

 

For the level strategy, compare the normal production rate of 1,030 units per month with the average monthly demand rounded to a whole number. Round all your answers for cost values to the nearest cent and all other answers to the nearest whole number. Do not round intermediate calculations. If your answer is zero, enter "0".

Level production plan with the average monthly demand rounded to a whole number:

The image is a homework worksheet from Chapter 14 on Resource Management, provided by Cengage MindTap. It features a detailed table with multiple columns and rows. Below is a transcription of the table's structure:

### Table Overview

#### Columns:
1. **Month**: Lists each month from January to December.
2. **Demand**: Displays the demand figures for each month.
3. **Cumulative Demand**: Cumulative numbers are provided, though the column contains blanks to be filled in.
4. **Production**: A column with spaces for inputting production numbers.
5. **Product Availability**: Blank spaces for product availability figures.
6. **Ending Inventory**: Spaces for ending inventory figures.
7. **Lost Sales**: Column for lost sales data.

#### Rows:
- Each row corresponds to a month, detailing the demand figures and providing spaces for cumulative data, production, availability, inventory, and lost sales. 

#### Data for Months:
- **January**: Demand - 710
- **February**: Demand - 1,090
- **March**: Demand - 880
- **April**: Demand - 690
- **May**: Demand - 1,400
- **June**: Demand - 1,130
- **July**: Demand - 1,550
- **August**: Demand - 1,020
- **September**: Demand - 530
- **October**: Demand - 390
- **November**: Demand - 980
- **December**: Demand - 1,210

#### Additional Information:
- **Average**: Space provided for calculating the average.
- **Total Costs**: Includes sections for various costs such as Total Production Cost, Total Inventory Cost, Total Lost Sales Cost, Total Overtime Cost, Total Undertime Cost, Total Rate Change Cost, with corresponding spaces for input.
- **Total Cost**: A final section to input the calculated total cost.

This table helps students analyze production and inventory management over a yearly cycle, allowing for input and calculation of key metrics related to demand, production, and various cost factors.
Transcribed Image Text:The image is a homework worksheet from Chapter 14 on Resource Management, provided by Cengage MindTap. It features a detailed table with multiple columns and rows. Below is a transcription of the table's structure: ### Table Overview #### Columns: 1. **Month**: Lists each month from January to December. 2. **Demand**: Displays the demand figures for each month. 3. **Cumulative Demand**: Cumulative numbers are provided, though the column contains blanks to be filled in. 4. **Production**: A column with spaces for inputting production numbers. 5. **Product Availability**: Blank spaces for product availability figures. 6. **Ending Inventory**: Spaces for ending inventory figures. 7. **Lost Sales**: Column for lost sales data. #### Rows: - Each row corresponds to a month, detailing the demand figures and providing spaces for cumulative data, production, availability, inventory, and lost sales. #### Data for Months: - **January**: Demand - 710 - **February**: Demand - 1,090 - **March**: Demand - 880 - **April**: Demand - 690 - **May**: Demand - 1,400 - **June**: Demand - 1,130 - **July**: Demand - 1,550 - **August**: Demand - 1,020 - **September**: Demand - 530 - **October**: Demand - 390 - **November**: Demand - 980 - **December**: Demand - 1,210 #### Additional Information: - **Average**: Space provided for calculating the average. - **Total Costs**: Includes sections for various costs such as Total Production Cost, Total Inventory Cost, Total Lost Sales Cost, Total Overtime Cost, Total Undertime Cost, Total Rate Change Cost, with corresponding spaces for input. - **Total Cost**: A final section to input the calculated total cost. This table helps students analyze production and inventory management over a yearly cycle, allowing for input and calculation of key metrics related to demand, production, and various cost factors.
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