Overtime capacity per monthSubcontracting capacity per monthRegular production costOvertime production costSubcontracting costHolding costBeginning workforceProduction rateRegular productionUnlimited$30 per pallet$40 per pallet$50 per pallet$2 per pallet10 workers200 pallets per workerHiring costFiring costper month$5000 per worker$8000 per worker 14.5. Mama's Stuffin' is a popular food item during the fall and wintermonths, but it is marginal in the spring and summer. Use the follow-ing demand forecasts and costs to determine which of the followingproduction planning strategies is best for Mama's Stuffin':a. Level production over the 12 months.b. Produce to meet demand each month. Absorb variations indemand by changing the size of the workforce.c. Keep the workforce at its current level. Supplement with over-time and subcontracting as necessary.MonthDemand ForecastMarch2000April10001000MayJune1000July10001500AugustSeptember2500October3000November9000December7000January4000February3000

One of the most challenging issues in production and manufacturing business is failure to have…

Answered: 14.5. Mama's Stuffin' is a popular food…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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an Shields Communications, Inc., a cellular communications provider based in Michigan, charges $86 per month for an all you can talk service plan. The company plans to increase marketing expenditure next year, but wants to determine the current CLV before making this decision. Variable costs before marketing are $28 per account per month and monthly retention expenditures are $12 per account. Ian Shields Communication's annual attrition rate is 17%, with an annual discount rate of 15%.
1. With examples and necessary figures, define the Key Inventory Terms ? 2. Suppose, you are newly appointed as a Sales Manager in Unilever Company and after joining your first assignment is to do the sales forecast for the next quarter. Therefore, explain what would be your approach to do a good sales forecast for the next quarter.
(2-b) A firm's demand in the next four quarters is forecast to be 400, 600, 800, and 700 units. Given that beginning inventory is 600, desired ending inventory in quarter 4 is 300, inventory holding cost is $6 per unit per quarter, and production cost is $50 per unit, calculate the cost of a level production plan.
1) Which of the following translates business plan into productionplanningAPPMPSMRPNone of the Above2) Master production schedule is a medium-range planning and it isused for quantity and timing ofcomponents and raw materialFinished goodsBoth A & B3) The manufacturing strategy which deploys hiring and laying ofworkers in order to match its production rate to demand is calledLevel Production StrategyChase Production StartegyHybrid StrategyNone of the above4) "In a level production strategy, if the firm makes annual 120,00units per annum, the permonth production can be estimatted by""120,00 /12""120,00 / 365"The information is not complete5) The Bill of material is an engineering documments that showsinclusive listing and sub-components to be used for end productTRUEFALSE6) A lead capacity usually increases or decreases its capacity in anticipation of demand, this is known as "Match strategyLead Capacity StrategyLag capacity strategy7) The most important output of MRP isBOMPlanned…
8 There are ______ stages in the process of developing a sales and operations planning (S&OP) plan. a four b five c six d seven 9 The objective of ______ is to ensure that there is sufficient manufacturing and distribution capacity to meet the demand forecasts. a operations planning b financial planning c supply planning d demand planning 10 Which planning approach is appropriate for companies that produce a combination of products and services that require similar resources? a bottom-up b top-down c aggregate d independent
Chase strategy is considered a sales and operations planning strategy such that: Select one: a. involves hiring and laying off staffs to match the demand forecast b. includes overtime, under-time, and vacation planning to match the demand forecast c. Build anticipation inventory to meet the variability in demand. d. deliberates the full range of supply options
Revenue and expense data for Bluestem Company are as follows: Year 2 Year 1 Administrative expenses $ 37,000 $ 20,000 Cost of goods sold 350,000 320,000 Income tax expense 40,000 32,000 Sales 800,000 700,000 Selling expenses 150,000 110,000 (a) Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. (b) Comment upon significant changes disclosed by the comparative income statement. Round percentages to one decimal place.
Given the following forecast and cost information, Regular time cost $ 40.00 per unitdetermine the total cost of a plan that uses regular time Overtime cost $ 60.00 per unitproduction output of 600 units per month, overtime is subcontracting cost $ 80.00 per unitused when needed up to a maximum of 60 units per holding cost $ 10.00 per unit per monthmonth, and subcontracting is used if additional units are needed to meet the forecast.Month Forecast1 5702 6003 6304 6505 6706 690Totals
A local semiconductor firm, Superchip, is planning its workforce and productionlevels over the next year. The firm makes a variety of microprocessors and usessales dollars as its aggregate production measure. Based on orders received and sales forecasts provided by the marketing department, the estimate of dollarsales for the next year by month is as follows:Production Predicted DemandMonth Days (in $10,000)January 22 340February 16 380March 21 220April 19 100May 23 490June 20 625July 24 375August 12 310September 19 175October 22 145November 20 120December 16 165Inventory holding costs are based on a 25 percent annual interest charge. It is anticipatedthat there will be 675 workers on the payroll at the end of the current year and inventorieswill amount to $120,000. The firm would like to have at least $100,000 of inventory at theend of December next year. It is estimated that each worker accounts for an average of$60,000 of production per year (assume that one year consists of 250…
A Las Vegas supermarket bakery must decide how many wedding cakes to prepare for the upcoming weekend. Cakes cost $33 each to make, and they sell for $60 each. Unsold cakes are reducedto half-price on Monday, and typically one-third of those are sold. Any that remain are donated toa nearby senior center. Analysis of recent demand resulted in the following table:Demand 0 1 2 3Probability .15 .35 .30 .20How many cakes should be prepared to maximize expected profit?a. Use the ratio method.b. Use the tabular method
Well water inc. wants to produce and sell a new flavored water in order topenetrate the market, the product will have to sell at 2.60 per 12 oz bottle thefollowing data has been collected: Annual sales 50,000 bottlesProjected selling and administrative costs 8,000Desired profit 80,000The target cost per bottle is _____ per bottle (2 decimal places)
Give typing answer with explanation and conclusion Food revenue is $287,690, while beverage revenues are $78,981, in a 300-room hotel that runs 62.5% occupancy in the month of April. Fifty-four percent (54%) of food revenue was generated in the F&B outlets, while the remaining 46% was generated in banquets. Outlet food revenue was anticipated to account for 60% of revenue at a 29.5% food cost, while banquets were anticipated to generate 40% of revenue at a 22.5% food cost. Calculate the potential food cost ratio for the month of April?

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