Concept explainers
The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The
As indicated by the algebraic formulation of the Pigskin model, there is no real need to calculate inventory on hand after production and constrain it to be greater than or equal to demand. An alternative is to calculate ending inventory directly and constrain it to be nonnegative. Modify the current spreadsheet model to do this. (Delete rows 16 and 17, and calculate ending inventory appropriately. Then add an explicit non-negativity constraint on ending inventory.)
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Chapter 3 Solutions
PRACTICAL MGT. SCIENCE (LL)-W/MINDTAP
- A company wants to develop a level production plan for a family of products. Theopening inventory is 100 units, and an increase to 130 units is expected by the endof the plan. The demand for each month is given in what follows. Calculate the totalproduction, daily production, and production and ending inventory for each month.arrow_forwardProduct D is stocked only at the AMC Chemical Company's Dallas warehouse and at the company's plant warehouse in Akron. The sales director has forecast product sales from the Dallas warehouse to be 40 units per week for the next 8 weeks. Product D is manufactured at the firm's Akron plant using 2 units of ingredient X per unit of product D. Suppose product D's actual sales at the Dallas warehouse in week 2 were 31 units. Again, all planned shipments/orders were released and expedite actions taken. What action would the master scheduler take on the basis of this information? In this situation, what modifications to the master production schedule might be taken? (4 points) Information: Ingredient X Projected available balance: 4 Units Safety stock quantity: 2 units Product D in Dallas Warehouse Product D in Plant Projected available balance: 85 Units Safety stock quantity: 5 units Lead time: 2 weeks Warehouse Projected available balance: 42 Units Safety stock quantity: 2 units Lead time:…arrow_forwardDevelop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. Also, evaluate the cost of the schedule. The monthly forecasts for Product X for January, February, and March are 1,000, 1,500, and 1,200, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 500 units. Manufacturing cost is $200 per unit, storage cost is $3 per unit per month (based on expected end-of-month levels), standard pay rate is $6 per hour, overtime rate is $9 per hour, cost of stock-out is $10 per unit per month, marginal cost of subcontracting is $10 per unit, hiring and training cost is $200 per worker, layoff cost is $300 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 50 workers and that they work 8 hours per day. Note: Leave the cells blank,…arrow_forward
- Production and Materials Purchases Budgets White Corporation’s budget calls for the following sales for next year:Quarter 1 90,000 units Quarter 3 68,000 unitsQuarter 2 76,000 units Quarter 4 96,000 unitsEach unit of the product requires 3 pounds of direct materials. The company’s policy is to begineach quarter with an inventory of product equal to 5% of that quarter’s estimated sales requirementsand an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production.Required Determine the production and materials purchases budgets for the second quarter.arrow_forwardA local manufacturer of toys produces several toys. Among the most popular is Disney-car toy model. Suppose that there are currently 100 Disney-car toys in inventory and that there are customer orders that have been committed and must be filled. Suppose that a production lot size of 150 Disney-car toys. The weekly forecasts for the eight weeks are 176, 172, 50, 130, 40, 120, 132, and 135 respectively. The customer orders for weeks 1. 2, 3 through 8 are the 88, 86, 25, 65, 20, 51, 0, O respectively. Using the standard principles of Master Production Schedule (MPS) along with Available-To-Promise (ATP) for the Disney-car toys, what is the Available to promise (ATP) level in week 2? a. 39 b. None is correct Oc. 79 d. 0 e. 150arrow_forwardA manufacturing company produces single item product. Theproduction manager decide to arrange 6 periods for MPS. Data aboutdemand forecasts are 112, 157, 126, 176, 124 and 181 while data aboutcustomer orders are 128, 156, 196, 147, 152 and 175. On hand inventoryis 300 units and production batch is 300 units. The productionmanager also decide that 3 beginning periods are critical, so that nochanges are allowed. Arrange MPS for that situation ! When system’s bottleneck requires 10 minutes to finish a unit product,make analysis about capacity. What is your suggestion? please explain it using excel or attached the excel sheetarrow_forward
- A local manufacturer of toys produces several toys. Among the most popular is Disney-car toy model. Suppose that there are currently 100 Disney-car toys in inventory and that there are customer orders that have been committed and must be filled. Suppose that a production lot size of 150 Disney-car toys. The weekly forecasts for the eight weeks are 176, 172, 50, 130, 40, 120, 132, and 135 respectively. The customer orders for weeks 1, 2, 3 through 8 are the 88, 86, 25, 65, 20, 51,0, 0 respectively. Using the standard principles of Master Production Schedule (MPS) along with Available-To-Promise (ATP) for the Disney-car toys, what is the maximum number of the projected held in inventory in any given week? O a. 132 O b. 52 74 O d. None is correct O e. 100arrow_forwardA local manufacturer of toys produces several toys. Among the most popular is Disney-car toy model. Suppose that there are currently 100 Disney-car toys in inventory and that there are customer orders that have been committed and must be filled. Suppose that a production lot size of 150 Disney-car toys. The weekly forecasts for the eight weeks are 176, 172, 50, 130, 40, 120, 132, and 135 respectively. The customer orders for weeks 1, 2, 3 through 8 are the 88, 86, 25, 65, 20, 51, 0,0 respectively. Using the standard principles of Master Production Schedule (MPS) along with Available-To-Promise (ATP) for the Disney-car toys, how many times production needs to scheduled? O a. None is correct ОЬ 5 О с. 4 O d. Oe. 8arrow_forwardEvaluate the statistical ROP when you have probabilistic demand and constant lead time,with constant demand and probabilistic lead time, and with demand and lead time bothprobabilistic.arrow_forward
- . Worldwide Can-Openers, Inc., makes a family of two hand-operated can openers. The production plan is based on months. There are 4 weeks in this month. Opening inventory is 2000 dozen, and it is planned to increase that to 4000 dozen by the end of the month. The MPS is made using weekly periods. The forecast and projected available balance for the two models follow. The lot size for both models is 1000 dozen. Calculate the production plan and the MPS for each item.arrow_forwardA company forecasts demand for a component at around 2,500 units a year. They make the component internally, and it costs $500 to set up each production run with a variable cost of $30 a unit. The holding costs are 20 % of value a year and the production rate is 10,000 units a year. There is a lead time of two months from receiving a production requisition until finished units begin to come from the production line. Question: How long is each inventory cycle (in weeks)?arrow_forwardA company wants to develop a level production plan for a family of products. Theopening inventory is 500 units, and a decrease to 250 units is expected by the end ofthe plan. The demand for each of the months is given in what follows. How muchshould the company produce each month? What will be the ending inventory in eachmonth? Do you see any problems with the plan?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,