Concept explainers
a)
To develop: Aggregate planning by considering hiring and layoff.
Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.
b)
To determine: Develop aggregate planning using level plan.
Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.
c)
To determine: The economically advantage plan
Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.
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PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
- please answer within 30 minutes. its urgent.arrow_forwardplease help me with Question 3 thanks! Demand forecasts for 2021 are as follows: Month Demand Jan 140,000 Feb 78,900 Mar 85,800 Apr 89,100 May 123,600 Jun 136,350 Jul 120,450 Aug 106,950 Sep 121,950 Oct 135,750 Nov 87,000 Dec 93,300 Each worker can produce 900 products per month and is paid $1500 per month. Assume that at the end of last year, the company has 100 employees working on the production line. Hiring and layoff (firing) decisions are made at the beginning of each month, and associated costs are charged at that time. It costs the company $400 to hire and $800 to lay off a worker. The company incurs holding cost for the amount of ending inventory in each month, and incurs backorder cost at the end of each month for any unfilled orders. The company incurs $2 per month for holding one unit in inventory and $4 per unit backorder. 1 Prepare a level aggregate plan. Under this level aggregate plan, how…arrow_forwardDeb Bishop Health and Beauty Products has developed a new shamp0o and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. Click the icon to view the four-quarter forecast. Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Hire Layoff (Units) Quarter Forecast Production (Units) 1,500 1 1,400 Costs Previous quarter's output Beginning inventory 1,500 units O units $45 per unit $9 per unit for every unit held at the end of the quarter $40 per unit $70 per unit $35 per unit $20 extra per unit Stockout cost for backorders Inventory holding cost Quarter Forecast Hiring workers Layoff workers 1 1,400 2 1,000 Unit cost 3 1,600 Overtime 4 1,300…arrow_forward
- The table below provides the aggregate plan of production by a firm. It is known that the firm uses a chase plan. The firm’s labor cost is $13/unit, hiring cost is $350 per unit of increase, and unit firing cost is $400 per unit of decrease in production. Given this information, what is the number in the cell with the question mark?arrow_forwardDeb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. Click the icon to view the four-quarter forecast. Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). More Info Hiring and Layoff Plan Hire Layoff Quarter Forecast Production (Units) (Units) 1,600 1 1,400 1400 0 200 2 1,000 1,000 0 400 3 1,600 1,600 600 0 4 1,200 ☑ More Info Previous quarter's output Beginning inventory Stockout cost for backorders Inventory holding cost Hiring workers Layoff workers Unit cost Overtime Subcontracting Costs 1,600 units $45 per unit O units $11 per unit for every unit held at the end of the quarter $50 per…arrow_forwardNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: Click the icon to view the demand forecast. E Click the icon to view the cost data. John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: • Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. • Plan B: a level strategy. • Plan C: a level strategy that produces 1,000 cases per quarter and meets the forecast demand with inventory and subcontracting. a) Which strategy is the lowest-cost plan? Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Layoff (Units) Hire Quarter Forecast Production Inits) 1,300 1 1,700 Costs/Other Data Previous quarter's output = 1,300 cases Beginning inventory = 0 cases Stockout cost of backorders = $140 per case Inventory holding cost = $45 per…arrow_forwardPlease do not write in column A Problem 6 Given the following forecast and cost information, determine the total cost of a plan that uses regular time production output of 600 units per month, overtime is used when needed up to a maximum of 60 units per month, and subcontracting is used if additional units are needed to meet the forecast. Regular time cost $ 40.00 per unit Overtime cost $ 60.00 per unit subcontracting cost $ 80.00 per unit holding cost $ 10.00 per unit per month Production Inventory Costs Month Forecast Level Production Overtime Subcontracting Total Holding Cost Regular Time Overtime Subcontracting Total Cost 1 563 0 2 608 3 648 4 668 5 666 6 688 Totalsarrow_forwardCreate a minimum cost chase plan for the forecast shown in the table. There is no beginning inventory and regular production capacity is 350 units and costs $8 per unit. Overtime costs $19 and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $14 per unit. What is the total plan cost? Hint: In a chase production plan, production is changed each time period to match the demand. Use regular production, overtime, and subcontracting to create the plan. Month Forecast Regular Overtime Subcontracting January 250 February 400 March 500 April 350arrow_forward
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub