Using the cut-and-try method for aggregate operations planning, as described in thetextbook, we can calculate the production requirement in units of output. Ifbeginning inventory = 500 units, demand forecast is 1,000 units and safety stock isset at 10% of the demand forecast, then the production requirement equals:a) 600b) 100c) 550d) 1,000e) 450

Safety stock is the stock that any business maintain so that the shortage issue can be eliminated in…

Answered: Using the cut-and-try method for…

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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Similar questions

OQ17
Can you say if it is better to carry inventory or create back orders? Discuss the pros and cons of each
In each of the following, name the term defined or answer the question. Answers are listed at the bottom. When overtime is used to meet demand and avoid the costs associated with hiring and firing. A strategy that uses inventory and backorders as part of the strategy to meet demand. Sometimes a firm may choose to have all or part of the work done by an outside vendor. This is the term used for the approach. If the expected demand during the next four quarters is 150, 125, 100, and 75 thousand units, and each worker can produce 1,000 units per quarter, how many workers should be used if a level strategy is being employed?
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…
You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 250 attendees. Assume that there is no inventory on hand of any of the items. Explode the bill of material. (Subscripts indicate the number of units required.) J K(1) L(3) M4) ..... Determine the number of units of each item required. Item K: units (enter your response as a whole number). Item L: units (enter your response as a whole number). Item M: units (enter your response as a whole number).
Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. A recent accounting statement shows that the inventory investment for raw materials is $4,100,400, for work-in-process is $6,538,000, and for finished goods is $2.964,000. This year's cost of goods sold will be about $18,148.000. Assume that there are 52 business weeks per year a. Express total inventory as weeks of supply. The weeks of supply is weeks. (Enter your response rounded to one decimal place.) b. Express total inventory as inventory tums. The inventory turnover is turns per year. (Enter your response rounded to one decimal place.)
Explain the figures and mention the disadvantages and advantages of the following figures based on the operation management perspective: leading demand with an incremental expansion, leading demand with one-step expansion, lagging demand with incremental expansion, attempts to have an average capacity that straddles demand with incremental expansion
Complete the MPS record below for a single item. (Enter your responses as integers. A response of "0" is equivalent to being not applicable.) Item: A Quantity on Hand: 80 Forecast Customer orders (booked) Projected on-hand inventory MPS quantity 1 70 40 ☐☐ January 2 70 65 80 Order Policy: 100 units Lead Time: 1 week February Week 4 40 0 5 45 35 50 70 45 0 8 50 0
A part is produced in lots of 1,000 units. It is assembled from2 components worth $50 total. The value added in produc-tion (for labor and variable overhead) is $60 per unit, bring-ing total costs per completed unit to $110. The average leadtime for the part is 6 weeks and annual demand is 3,800 units,based on 50 business weeks per year.a. How many units of the part are held, on average, in cycleinventory? What is the dollar value of this inventory?b. How many units of the part are held, on average, in pipe-line inventory? What is the dollar value of this inventory?(Hint: Assume that the typical part in pipeline inventoryis 50 percent completed. Thus, half the labor and variableoverhead cost has been added, bringing the unit cost to$80, or $50 + $60>2).
OQ18
. Up, Up, and Away is a producer of kites and wind socks. Relevant data on a bottleneck operation in the shop for the upcoming fiscal year are given in the following table: Item Demand forecast Lot size Standard processing time Standard setup time Kites 30,000 units/year 20 units 0.3 hour/unit 3.0 hours/lot Wind Socks 12,000 units/year 70 units 1.0 hour/unit 4.0 hours/lot The shop works two shifts per day, 8 hours per shift, 200 days per year. Currently, the company operates four machines, and desires a 25 percent capacity cushion. How many machines should be purchased to eet the upcoming year's demand without resorting to any short-term capacity solutions?
If the actual production for a month is 216 and the required production is 200, how many units need to be subcontracted?

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