Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Question
Chapter 11, Problem 26P
Summary Introduction
Interpretation: Units of items by the end of the week are to be calculated.
Concept Introduction: Materials requirement planning is a process in which planning is made for the requirement of raw material required foe manufacturing of finished product.
Aggregate planning is a marketing process in which production of output is planes in advance for some months to give an idea to management regarding procurement of goods.
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Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the
manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens
them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra
plastic.
The following information is available for the month of January:
January 1
Quantity
(pounds)
January 31
Quantity
(pounds)
Work-in-Process Inventory
Cost
Cost
Molding department
Finishing department
None
None
5,000
$ 15,000
2,000
The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the
beginning and end of January. Costs of production for January follow:
Direct
Costs of Production
Materials
Conversion
Molding department
Finishing department
$ 450,000
$ 90,000
80,290
The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process
costing.
Required:
1. Prepare…
Product A
Order Qty = 400
Order Lead Time = 2
Forecast Demand
Scheduled Receipts
Projected Available
Inventory
400
Planned Order Receipts
Planned Order Releases
1
300
OD 4, 6,
2
300
400
Sketch and fill in the grid on scrap paper to use on upcoming questions
In what periods would you incur a planned order release?
OA 1.3, and 4
2.4, and 5
OC 3,5, and 6
and 7
3
300
PERIODS
4
300
5
300
6
300
7
100
8
100
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year.
The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws
have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows:
MONTH
DEMAND (UNITS)
January
February
4,100
4,200
March
3,900
April
4,300
May
4,900
June
4,600
July
5,200
August
4,800
September
5,300
October
5,600
November
6,200
December
5,900
Chapter 11 Solutions
Practical Operations Management
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6P
Ch. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10PCh. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 30PCh. 11 - Prob. 31PCh. 11 - Prob. 32PCh. 11 - Prob. 33PCh. 11 - Prob. 34PCh. 11 - Prob. 1.1QCh. 11 - Prob. 1.2QCh. 11 - Prob. 1.3QCh. 11 - Prob. 2.2Q
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- Refer to Figure 11.23 and Solved Problem 1. If inventory consists of two units of B, one unit of F. and three units of G, how many units of G. E. and D must be purchased to produce five units of product A? Figure 11.23 for Product A D(1) LT-3 B(3) LT-2 EG LT-6 FIT) CO) LT-1 GALA LT=3 D(1) LT-3 LT-Lead timearrow_forwardCalculate available-to-promise quantities.arrow_forwardAnalyze the impact of demand variability on the effectiveness of the Wilson approach and propose strategies to mitigate this variability.arrow_forward
- Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,240 February 4,340 March 4,040 April 4,440 May 5,040 June 4,740 July 5,340 August 4,940 September 5,440 October 5,740 November 6,335 December 6,030 a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 4 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round…arrow_forward2. Demand for Quiggly Pops (QP) follows an up and down pattern over the four quarters of a year, with peaks in the spring and winter months when special promotions are held. Production is handled by a highly-skilled local workforce during a regular 40-hour week (i.e., overtime and subcontracting are not used). The company likes to zero out its inventory at the end of a year so that it can start fresh each January. QP currently uses a level production strategy, but would like to evaluate other options. Create a production plan and calculate the cost of the plan for each strategy listed below. Which plan would you recommend to QP? (a) Level production (b) Chase demand Quarter Demand Forecast 1 70,000 2 100,000 3 50,000 4 150,000 Beginning workforce 40 workers Production rate per worker 1250 units/quarter Regular production cost $10 per unit Hiring cost $500 per worker Firing cost $500 per worker Holding cost $1 per unit per quarterarrow_forwardPlease help solve the questionarrow_forward
- 2) Life Cycle Assessment of Glass. Inventory Analysis Determine, as an example, the second phase (Inventory Analysis) of the Life Cycle Assessment of the glass used for the manufacture of soda bottles.arrow_forwardidentified order processing time risk and purpose solution using Plan-Do-Check-Act cycle.arrow_forwardCalculate the available-to-promise row in the following ma-trix.arrow_forward
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