a)
To determine: The total cost of the aggregate plan using hiring or 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: The total cost of aggregate plan with overtime and constant workforce.
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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Operations Management: Sustainability and Supply Chain Management (12th Edition)
- QUESTION 1 The enrollment of the new students at ABC University has increased steadily over the past few years. The university would like to plan the workforce for academicians for year six to year eight. The reyulalury buuy, Malaysian Acuredilaliun Ayency (MQA) has set the standard of the ratio between academicians and student to be 1:50. The data below show the number of students enrolled for the past five years. Year Demand 4500 5000 5200 1 2 3 4 5600 5800 The university's administration considers using simple regression analysis to forecast the number of students enrolled in the next three years. a) Use simple linear regression to forecast the annual number of students enroll for the next three years. b) Determine the correlation coefficient for the data and interpret its meaning. c) Determine the coefficient of determination for the data and interprot its moaning. d) Determine the number of academicians that can fulfill the MQA standard for year six.arrow_forwardQuestion 5 Terminator, Inc., manufactures a motorcycle part in lots of 150 units. The raw materials cost for the part is $150, and the value added in manufacturing 1 unit from its components is $320, for a total cost per completed unit of $470. The lead time to make the part is 2 weeks, and the annual demand is 3,800 units. Assume 50 working weeks per year. a. How many units of the part are held, on average, as cycle inventory? __________________ units. (Enter your response as an integer.) What is its value? $___________________ (Enter your response as an integer.) b. How many units of the part are held, on average, as pipeline inventory? ________________ units. (Enter your response as an integer.) What is its value? $__________________________ (Enter your response as an integer.)arrow_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_forward
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- Required information Skip to question George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company’s products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Week Units Total Etching Cost 1 9 $ 21 2 12 25 3 13 30 4 9 20 5 11 25 6 18 34 72 $ 155 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. 2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week. 2-b. Express these estimates in the form Y = a + bX.arrow_forwardQuestion 3 Gajah Sdn Bhd makes two products (Alpha and Beta) that require direct materials, direct labour and overhead. The operations for next month are: Alpha RM Beta Revenue Direct material Direct labour Overhead: Direct material related Direct labour related RM 300,000 60,000 95,000 Total RM 400,000 90,000 135,000 100,000 30,000 40,000 13,500 40,500 Required : a) Gajah uses a two-stage cost allocation system. It uses direct material costs to allocate direct materials related overhead and direct labour costs to allocate direct labour related overhead costs: i. Calculate the direct material related overhead rate for next month. ii. Calculate the direct labour related overhead rate for next month iii. What is the total overhead allocated to product Alpha next month? iv. What is the total overhead allocated to product Beta next month?arrow_forwardQuèstion 8 A company must pay each month's bills for rent, heat, interest, and executive salaries regardless of the company's level of output. These expenses represent: O a. Fixed costs O b. Target costs Oc. Direct costs O d. Variable costs O e. Total costs hp IDI 米 & 00arrow_forward
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