Operations and Supply Chain Management 9th edition
9th Edition
ISBN: 9781119320975
Author: Roberta S. Russell, Bernard W. Taylor III
Publisher: WILEY
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Question
Chapter 14, Problem 22P
Summary Introduction
To determine: The production plan that would satisfy the demand at minimum cost.
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Students have asked these similar questions
Robotic Pet Products uses overtime, inventory, and subcon-tracting to absorb fluctuations in demand. As expected, de-mand in the fourth quarter during the holiday season isparticularly high, followed by first quarter demand forcustomers purchasing accessories for their R-pets. Giventhe demand and available capacities shown below, design aproduction plan that will satisfy demand at minimum cost.Regular production cost per unit $10Overtime production cost per unit $15Subcontracting cost per unit $20Inventory holding cost per unit per period $3Beginning inventory 100
Regular Overtime SubcontractingQuarter Demand Capacity Capacity Capacity1 1000 1000 100 5002 800 1000 100 5003 600 1000 100 5004 2600 1000 100 500
Snip
Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the
manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens
them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra
plastic.
The following information is available for the month of January:
January 1
Quantity
(pounds)
January 31
Quantity
(pounds)
Work-in-Process Inventory
Cost
Cost
Molding department
Finishing department
None
None
5,000
$ 15,000
2,000
The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the
beginning and end of January. Costs of production for January follow:
Direct
Costs of Production
Materials
Conversion
Molding department
Finishing department
$ 450,000
$ 90,000
80,290
The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process
costing.
Required:
1. Prepare…
Chapter 14 Solutions
Operations and Supply Chain Management 9th edition
Ch. 14.S - Prob. 1QCh. 14.S - Prob. 2QCh. 14.S - Prob. 3QCh. 14.S - Prob. 4QCh. 14.S - Prob. 5QCh. 14.S - Prob. 6QCh. 14.S - Prob. 7QCh. 14.S - Prob. 8QCh. 14.S - Prob. 1PCh. 14.S - The Tycron Company produces three electrical...
Ch. 14.S - Prob. 3PCh. 14.S - The Pinewood Cabinet and Furniture Company...Ch. 14.S - The Mystic Coffee Shop blends coffee on the...Ch. 14.S - Prob. 6PCh. 14.S - Prob. 7PCh. 14.S - Prob. 8PCh. 14.S - Prob. 9PCh. 14.S - Prob. 10PCh. 14.S - Prob. 11PCh. 14.S - Prob. 12PCh. 14.S - Prob. 13PCh. 14.S - Prob. 14PCh. 14.S - Prob. 15PCh. 14.S - Prob. 16PCh. 14.S - Prob. 17PCh. 14.S - Prob. 18PCh. 14.S - Prob. 19PCh. 14.S - Prob. 20PCh. 14.S - Prob. 22PCh. 14.S - Prob. 23PCh. 14.S - Prob. 24PCh. 14.S - Prob. 25PCh. 14.S - Prob. 27PCh. 14.S - Prob. 28PCh. 14.S - Prob. 1.1CPCh. 14.S - Prob. 1.2CPCh. 14.S - Prob. 1.3CPCh. 14.S - Prob. 1.4CPCh. 14.S - Prob. 1.5CPCh. 14.S - Prob. 1.6CPCh. 14.S - Prob. 1.7CPCh. 14.S - Prob. 1.8CPCh. 14.S - Prob. 1.9CPCh. 14.S - Prob. 2.1CPCh. 14 - Prob. 1.1ASCCh. 14 - Prob. 1.2ASCCh. 14 - Supply and Demand in the Spirits Industry A...Ch. 14 - Supply and Demand in the Spirits Industry A...Ch. 14 - Supply and Demand in the Spirits Industry A...Ch. 14 - Disneys Magic Numbers Sales and operations...Ch. 14 - Disneys Magic Numbers Sales and operations...Ch. 14 - Prob. 1QCh. 14 - List several alternatives for adjusting capacity....Ch. 14 - Prob. 3QCh. 14 - How do linear programming, the linear decision...Ch. 14 - Prob. 5QCh. 14 - What options are available for altering the...Ch. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Explain the process of collaborative planning. How...Ch. 14 - Prob. 11QCh. 14 - Prob. 12QCh. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Mamas Stuffin is a popular food item during the...Ch. 14 - Prob. 6PCh. 14 - Slopes Sleds (SS) makes skis, snowboards, and...Ch. 14 - Prob. 8PCh. 14 - Midlife Shoes, Inc, is a manufacturer of sensible...Ch. 14 - Design a production plan for Mamas Stuffin in...Ch. 14 - Design a production plan for FansForYou in Problem...Ch. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Prob. 18PCh. 14 - Prob. 19PCh. 14 - Prob. 20PCh. 14 - Prob. 21PCh. 14 - Prob. 22PCh. 14 - How many units are available-to-promise in period...Ch. 14 - Complete the available-to-promise table below.Ch. 14 - Complete the available-to-promise table below.Ch. 14 - Calculate the available-to-promise row in the...Ch. 14 - Complete the following table. How many Bs are...Ch. 14 - Managers at the Dew Drop Inn are concerned about...Ch. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Prob. 31PCh. 14 - Prob. 32PCh. 14 - The Forestry Club sells Christmas trees each year...Ch. 14 - Prob. 34PCh. 14 - Tariott Hotel rents rooms for 125 a night that...Ch. 14 - Prob. 36PCh. 14 - Prob. 1.1CPCh. 14 - Prob. 1.2CPCh. 14 - Prob. 1.3CP
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Similar questions
- The Eagle Machine Company averaged $2 million in inventory last year, and the cost of goods sold was $10 million. Figure 12.5 shows the breakout of raw materials, work-in-process, and finished goods inventories. The best inventory turnover in the company’s industry is six turns per year. If the company has 52 business weeks per year, how many weeks of supply were held in inventory? What was the inventory turnover? What should the company do?arrow_forwardVartan Information Technologies has a division called Useless Transistors. It is considering an « overhaul » of Useless Transistors’ operations or moving Useless overseas. Inventory management is receiving considerable attention. Vartan collected data for the years 2014, 2015, and a forecast for 2016. This data is provided below. What would be Useless Transistors’ weeks of supply for 2015? Projected 2014 2015 2016 Sales $127,890,000 $148,900,000 $192,340,000 Beginning Inventory $3,897,234 $5,467,983 $6,183,230 Ending Inventory $5,467,983 $6,183,230 $4,654,129 Cost of Goods Sold $16,876,400 $20,376,548 $22,346,786 Group of answer choicesarrow_forwardRefer to this product tree If 17 Ps are needed, and no on-hand inventory exists for any items, how many Cs will be needed?arrow_forward
- The Cobb Clinic treats walk-in patients for various illnesses. The management accountant has estimated that the clinic has $5,000 in monthly fixed costs in addition to a $20 cost per patient visit. If thecharge is $30 per visit, how many visits per month does the clinic need to break even?arrow_forwardMarty McDonald has a business packaging software inWisconsin. His annual fixed cost is $10,000, direct labor is $3.50 per package, and material is $4.50 per package. The sell-ing price will be $12.50 per package. What is the break-even point in dollars? What is break-even in units?arrow_forwardhe following data below gives information for ABCO building supplies. Cost of goods sold last year was 36646558.0 and the average aggregate inventory on raw materials is 2,310,000, work in process (WIP) is 3,500,000 and the finished goods is 4,000,000. Round all of your answers to ONE decimal place. Inventory Turns Last Year is:arrow_forward
- The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,000 units per month and subcontract additional units at a $60 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Inventory Subcontract Month Demand Production (Units) 1 July 1000 1,000 2 August 1200 1,000 3 September 1400 1,000 4 October 1800 1,000 November 1800 1,000 6. December 1600 1,000 LOarrow_forwardNike and Adidas let customers design their own custom shoes on their website, allowing them to choose colors of the different shoe parts. The shoes are made to order, but are not significantly more expensive than regular Nike or Adidas shoes and are shipped to customers quickly. How is this possible? Group of answer choices a) Nike and Adidas have better manufacturing facilities than other shoe companies. b) Nike and Adidas use mass customization to streamline the manufacturing process for customized goods. c) Nike and Adidas can effectively predict customer orders and make the shoes before they are ordered so they are ready to ship. d) Nike and Adidas have all of the possible combinations in stock and can simply ship the shoes that match the customer's choices.arrow_forwardUsing the case study as reference, justify to Ellie and and her team how they can use RFID to manage inventoryarrow_forward
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