Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 13, Problem 25P

a)

Summary Introduction

To determine: Aggregate planning for the 6-month period and its costs.

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)

Summary Introduction

To determine: Whether 4 CPAs are required for the firm and if any additional accountants are needed

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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QUESTION TWO An aggregate plan is to be developed for the forecast of demand covering nine periods shown in Table below. Other relevant production and cost information is also provided. Find the cost associated with an aggregate plan that involves varying the size of the work force in order to have a production rate that matches demand. Note: Since this plan does not allow for any inventory build-up, a decision has been made to carry 10 units of safety stock, but no overtime or subcontract labour is used. Table showing Demand, production, and cost information Month Jan. Feb. Mar. April May June July Aug. Sept. Total Forecast 40 25 30 60 40 55 30 50 30 360 Production information Cost information Current number of workers Worker time/month Time to produce one unit 10 Hiring cost K600/employee 160 hrs Layoff cost K500/employee 40 hrs Regular time cost K30/hr Individual worker output Overtime cost K45/hr (160 hr/month/40 hr/unit) Subcontract labour K50/hr 4 units cost Safety stock of…
Required: A. What    are    the    actual    and    budgeted    selling    prices?    What    are    the    actual    and    budgeted    variable    costs    per    unit?B. Calculate    all    the    required    variances    and present    the    variance    analysis    report.
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