a)
To determine: The total cost of the 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.
b)
To determine: The total cost of the 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 total cost of the plan, if the overtime increased to $1,400.
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.
Want to see the full answer?
Check out a sample textbook solutionChapter 13 Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
- Question 6 Table below is a time-phased net requirements for Widgets over the next six weeks. Week 1 Requirements 335 The setup cost is $200 and the holding cost is $0.30 per unit per week. Using the Silver-Meal heuristics, indicate the number of units to produce for each of the following period. Enter your answer as integer. Week 1 2 3 4 5 6 2 200 Production Quantity 3 140 4 440 5 300 The total holding and setup cost for the Silver-Meal lot sizing method is $ Note: Enter your value with exactly 2 decimal places, as in 12345.67 6 200arrow_forwardProblem 1 The following information applies to the City View Restaurant. May 1 Food inventory value: $73,480 bnl de May 31 Food inventory value: $77,550 bonen Cost of food used during May $386,410 1. What is the inventory turnover rate for food products for the City View Restaurant? 2. What does the answer (inventory turnover ratio) in question 1 mean?arrow_forwardSubject: Logistic management Q): calculate inventory turn over ratio, Where sales is 2,000,000COGS is 65% of sales And average inventory is 125,435 What will be inventory ratio in days and weeksarrow_forward
- Question 4 b) Company ABC wishes to evaluate whether to produce a component internally or purchase from a vendor. The firm has the following options: Internal Production Process 1 Process 2 Purchase from Vendor Vendor 1 Vendor 2 Vendor 3 Variable cost of $17 per unit; annual fixed cost of $200,000 Variable cost of $14 per unit; annual fixed cost of $240,000 Offers a price of $20 per unit for any volume up to 30,000 units Offers a price of $22 per unit for 1,000 units or less, and $18 per unit for large quantities Offers a price of $21 per unit for the first 1,000 units and $19 per unit for additional units If the annual demand is 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best?arrow_forwardQ7. The president of Rose Bowl Enterprises, Desmond Howard, projects the firms aggregate DEMAND requirements over the next 8 months as follows: These are the monthly DEMAND, not production. MONTH JAN FEB MAR APR MAY JUN JULY AUG DEMAND 1,400 1,600 1,800 1,800 2,200 2,200 1,800 1,800 PRODUCTION 1,600 from December INVENTORY 200 from Dec plus 200 His operations manager is considering a new plan, which begins in January with 200 units on hand. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle time costs. The plan is called plan A. Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand was given as 1,600 units per month. Therefore, the production for JAN will be 1,600. However, only 1,400 are needed. Therefore, the extra 200 produced go into inventory and there is a holding cost for inventory. Also, per the above, you already have 200 units in inventory…arrow_forwardQuestion 2 - Rohe (Hong Kong) Ltd is a pharmaceutical company which manufactures and supplies various drugs for drug stores in Asia. Currently, Rohe (Hong Kong) Ltd has four factories A, B, C and D. Management has decided to build a new factory at a location central to these factories. Information regarding the yearly demands and the map coordinates for the four factories are shown in below table. Factories e Demand e x-coord- 9,000- y-coorde A- 20e 130e Be 3,000 60- 404 Ce 5,000- 70- 100- De 16,000- 90 30 (a) Determine the map coordinates of the new factory. (b) Suggest and elaborate TWO other factors that need to consider in the selection of location. earrow_forward
- Coparrow_forwardQuestion 4 An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit. The break-even point volume is:arrow_forwardQuestion 4 Right now is Quarter 2 of 2020. You are developing an aggregate production plan for 2021. rvey Suppose the beginning inventory at the first quarter of 2021 is estimated to be 196 units. ing The demand for Quarter 1 of 2021 is forecasted to be 1.208 units while the demand for Quarter 2 2021 is forecasted to be 891 units. Overtime production and subcontract will not be available in the first two quarters of 2021. If the regular production in Quarter 1 is 1,950 units and the regular production in Quarter 2 is 891 units, what is the ending inventory level in Quarter 2 of 2021?arrow_forward
- 8arrow_forward3. Your independent oil and gas company is considering the purchase at time zero of a 100 % working interest in a property. If you elect to develop the lease for an 87.5% revenue interest, the following costs will be incurred: in time zero, the lease bonus cost is $100,00o, intangible drilling costs are estimated at $550,000 while tangible completion costs are estimated at $300,000. Operating costs are estimated to remain constant at $8.00 per barrel (includes production costs, severance taxes and ad-valorem taxes) in each of years 1, 2, 3 and 4. Oil prices are forecasted to be $50.00 per barrel in each of years 1, 2, 3, and 4. Production is summarized in the following table. The escalated dollar minimum rate of return is 12.0%. Use net present value analysis to determine if the acquisition and development of this lease is economically viable: (a) Before considering income taxes, (b) Assuming income tax rate of 30%. (Expense 100% of intangible drilling costs at the end of first year,…arrow_forwardQuestion 5: A Mechanical Design Company produces an innovative design of Batttery used for electric cars. The standard design of producing one(1) unit of Battery is provided in the bill of materials BOM which requires material mix shown in Table Q5a. The current monthly production of Battery is 2000 units per month with the actual material consumption shown in Table Q5b. Determine the following and justify why it is favorable or adverse. (i) Material usage variance; (ii) Material price variance; (ii) Total material cost variance; Table Q5a Usage (units) 5 Materials Total cost (OMR) V 17 W 3 38 X 8 50 Y 38 Table Q5b Usage (units) 12,047 6,902 17,556 4,122 Total cost (OMR) 50,526 94,083 103,953 76,408 Materials V W Yarrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.