The daily demand of the product. Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Question

PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below: Supply/Demand Info Beginning Jan Feb Mar Apr May Jun Forecast (demand) 53,800 53,400 51,000 63,800 49,200 59,000 Regular production Overtime production Subcontract production Ending inventory 4,000 Hired employees Fired employees Total employees 190 Cost variables are as follows: Cost Variables Labor cost/hour $16 Overtime cost/unit $39 Subcontracting cost/unit $35 Holding cost/unit/month $14 Hiring cost/employee $3,100 Firing cost/employee $5,500 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/SSD 4 Regular production units/employee/month 200…

Answer 1

Question

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The number of day production must be carried out.

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

d)

Summary Introduction

To determine: The maximum and average inventory levels.

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

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PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below: Supply/Demand Info Beginning Jan Feb Mar Apr May Jun Forecast (demand) 53,800 53,400 51,000 63,800 49,200 59,000 Regular production Overtime production Subcontract production Ending inventory 4,000 Hired employees Fired employees Total employees 190 Cost variables are as follows: Cost Variables Labor cost/hour $16 Overtime cost/unit $39 Subcontracting cost/unit $35 Holding cost/unit/month $14 Hiring cost/employee $3,100 Firing cost/employee $5,500 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/SSD 4 Regular production units/employee/month 200…

Discuss how a human resource professional can better gain the confidence of senior management and, thereby, become a key participant/player in the organization’s future.

PP.63 Jupiter, a large candy company, is having great success with its "Swan" family of candy bars. Due to a number of factors they like to plan their production at least six months into the future. The table below contains their demand projections (in tons) for April through September: Supply/Demand Info Beginning Apr May Jun Jul Aug Sep Predicted Sales 45,500 45,100 51,900 52,800 47,900 47,200 Regular production Overtime production Subcontract production Ending inventory 14,400 Hired employees Fired employees Total employees 423 Cost variables are as follows: Cost Variables Labor cost/hour $13 Overtime cost/ton $30 Subcontracting cost/ton $28 Holding cost/ton/month $14 Hiring cost/employee $3,700 Firing cost/employee $5,800 Here is some additional…

Answer 2

Question

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The number of day production must be carried out.

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

d)

Summary Introduction

To determine: The maximum and average inventory levels.

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

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Answer 3

Question

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The number of day production must be carried out.

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

d)

Summary Introduction

To determine: The maximum and average inventory levels.

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The number of day production must be carried out.

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

d)

Summary Introduction

To determine: The maximum and average inventory levels.

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The number of day production must be carried out.

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

d)

Summary Introduction

To determine: The maximum and average inventory levels.

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Answer 6

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Answer 7

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Answer 8

b)

Summary Introduction

To determine: The number of day production must be carried out.

Answer 9

b)

Summary Introduction

To determine: The number of day production must be carried out.

Answer 10

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

Answer 11

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

Answer 12

d)

Summary Introduction

To determine: The maximum and average inventory levels.

Answer 13

d)

Summary Introduction

To determine: The maximum and average inventory levels.

Answer 14

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

Answer 15

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

Answer 16

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Answer 17

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Answer 18

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Answer 29

Ch. 12 - Question 1. Describe the four types of inventory.Ch. 12 - Question 2. With the advent of low-cost...Ch. 12 - Question 3. What is the purpose of the ABC...Ch. 12 - Question 4. Identify and explain the types of...Ch. 12 - Question 5. Explain the major assumptions of the...Ch. 12 - Question 6. What is the relationship of the...Ch. 12 - Question 7. Explain why it is not necessary to...Ch. 12 - Question 8. What are the advantages of cycle...Ch. 12 - What impact does a decrease in setup time have on...Ch. 12 - When quantity discounts are offered, why is it not...

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To determine: The number of day production must be carried out.

To determine: The number production runs per year and annual setup cost.

To determine: The maximum and average inventory levels.

To determine: The total annual setup cost and holding cost.

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Chapter 12 Solutions