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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Demand Planning and Operations are an official Image of the Logistics. a. False B. True
The total planned expenditures is called as aggregate demand Select one: True False
The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,000 units per month and subcontract additional units at a $60 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Inventory Subcontract Month Demand Production (Units) 1 July 1000 1,000 2 August 1200 1,000 3 September 1400 1,000 4 October 1800 1,000 November 1800 1,000 6. December 1600 1,000 LO
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ABC COMPANY uses graphical techniques in its aggregate planning efforts. Over the next 12 months (its intermediate period), it estimates the sum of demands to be 300,000 units. The firm has 300 production days per year. In February, which has 20 production days, demand is estimated to be 20,000 units. A graph of demand versus level production will show that: O O level production is approximately 900 units per month. level production of 1000 units per day is above the February requirement. the firm must hire workers between January and June. the February requirement is equal level production of 1000 units. level production is approximately 800 units per day.
Lawn King produces a couple models of push lawn mowers. A total of 60 workers are currently employed to work on the assembly line. Hiring cost is $800 for each new employee, while the cost of laying off an employee is $1200. The production strategy in current use is a one-shift-per-day level strategy at average demand. Differences between demand and production are balanced by inventory and backorders. If a backorder occurs, the order is filled from the next available production run and safety stock is consumed if needed and replenished later. Lawn King utilizes a $7/unit carrying cost per month for inventory, and backorders have a cost of $10/unit per month. Production is estimated at 5 mowers per worker per shift, and the assembly line operates 20 working days (shifts) per month. Lawn King keeps 500 mowers as safety stock, which will be the beginning inventory for September. The regular time cost of production is $50 per lawn mower. [Hint: production = (# of…
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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…
. Terminator, Inc., manufactures a motorcycle part in lots of 250 units. The raw materials cost for the part is $150, and the value added in manufacturing 1 unit from its components is $300, for a total cost per completed unit of $450. The lead time to make the part is 3 weeks, and the annual demand is 4,000 units. Assume 50 working weeks per year. a. How many units of the part are held, on average, as cycle inventory? What is its value? b. How many units of the part are held, on average, as pipeline inventory? What is its value?
100 Yen Sushi House Sang M. Lee tells of a meeting with two Japanese businessmen in Tokyo to plan a joint U.S. Japanese conference to explore U.S. and Japanese management systems. As lunchtime drew near, his hosts told him with much delight that they wished to show him the "most productive operation in Japan." Lee describes the occasion: "They took me to a sushi shop, the famous 100 Yen Sushi House, in the Shinzuku area of Tokyo. Sushi is the most popular snack in Japan. It is a simple dish, vinegared rice wrapped in different things, such as dried seaweed, raw tuna, raw salmon, raw red snapper, cooked shrimp, octopus, fried egg, etc. Sushi is usually prepared so that each piece will be about the right sizeto be put into the mouth with chopsticks. Arranging the sushi in an appetizing and aesthetic way with pickled ginger is almost an art in itself. "The 100 Yen Sushi House is no ordinary sushi restaurant. It is the ultimate showcase of Japanese productivity. As we entered the shop,…

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