2. Calculate the economic order quantitiy. Because of the high setup cost of $60/order forproducing push lawnmowers, production is ordered in specified quantities instead of lot-for-lot.Calculate the economic order quantity for push mowers (assume independent of model; holding costare given above). This quantity will be used as the lot size for the MRP. [Hint - convert holding costgiven above to annual in this calculation.] LAWN KING PROJECTLawn King produces a couple models of push lawn mowers. A total of 60 workers are currentlyemployed to work on the assembly line. Hiring cost is $800 for each new employee, while the cost oflaying off an employee is $1200. The production strategy in current use is a one-shift-per-day levelstrategy at average demand. Differences between demand and production are balanced by inventoryand backorders. If a backorder occurs, the order is filled from the next available production run andsafety stock is consumed if needed and replenished later. Lawn King utilizes a $7/unit carrying cost permonth for inventory, and backorders have a cost of $10/unit per month. Production is estimated at 5mowers per worker per shift, and the assembly line operates 20 working days (shifts) per month. LawnKing keeps 500 mowers as safety stock, which will be the beginning inventory for September. Theregular time cost of production is $50 per lawn mower.[Hint: production = (# of workers) ( # of mowers each worker produces per shift) (# of shifts per month)]Each May an aggregate production plan is prepared for the upcoming fiscal year that starts inSeptember. The aggregate plan is used for personnel planning, inventory planning, and budgetpreparation.

EOQ is a statistical and mathematical concept used in production and operations management. It…

2. Calculate the economic order quantitiy. Because of the high setup cost of $60/order for producing push lawnmowers, production is ordered in specified quantities instead of lot-for-lot. Calculate the economic order quantity for push mowers (assume independent of model; holding cost are given above). This quantity will be used as the lot size for the MRP. [Hint - convert holding cost given above to annual in this calculation.]

2. Calculate the economic order quantitiy. Because of the high setup cost of $60/order for producing push lawnmowers, production is ordered in specified quantities instead of lot-for-lot. Calculate the economic order quantity for push mowers (assume independent of model; holding cost are given above). This quantity will be used as the lot size for the MRP. [Hint - convert holding cost given above to annual in this calculation.]

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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The president of HiU Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 monthsas follows: Her operat ions manager is considering a new pla n, whichbegins in January with 200 uni ts on hand . Stockout cost of lostsales is SlOO per unit. Inventory holding cost is $20 per unit permonth. Ignore any idle-time costs. The plan is called plan A.Plan A: Vary the workforce level to execute a strategy that producesthe quantity demanded in the prior month. The Decemberdemand and rate of production are both I ,600 units per month. Thecost of hiring additional workers is $5,000 per I 00 uruts. The cost oflaying oiTworkers is $7,500 per 100 units. Evaluate this plan.
Lawn King produces a couple models of push lawn mowers. A total of 60 workers are currently employed to work on the assembly line. Hiring cost is $800 for each new employee, while the cost of laying off an employee is $1200. The production strategy in current use is a one-shift-per-day level strategy at average demand. Differences between demand and production are balanced by inventory and backorders. If a backorder occurs, the order is filled from the next available production run and safety stock is consumed if needed and replenished later. Lawn King utilizes a $7/unit carrying cost per month for inventory, and backorders have a cost of $10/unit per month. Production is estimated at 5 mowers per worker per shift, and the assembly line operates 20 working days (shifts) per month. Lawn King keeps 500 mowers as safety stock, which will be the beginning inventory for September. The regular time cost of production is $50 per lawn mower. [Hint: production = (# of…
Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 90,000; March 65,000; April 110,000; May, 55,000. Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1. Costs are hiring, $50 per new worker; layoff, $70 per worker laid off; inventory holding, $10 per unit-month; straight-time labor, $10 per hour; overtime, $15 per hour; backorder, $20 per unit a. Find the total cost of this plan?
The Morning Brew Coffee Shop sells Regular, Cappuccino,and Vienna blends of coffee. The shop’s current daily laborcost is $320, the equipment cost is $125, and the overheadcost is $225. Daily demands, along with selling price and ma-terial costs per beverage, are given below.Harald Luckerbauer, the manager at Morning Brew Cof-fee Shop, would like to understand how adding Eiskaffee (aGerman coffee beverage of chilled coffee, milk, sweetener,and vanilla ice cream) will alter the shop’s productivity. Hismarket research shows that Eiskaffee will bring in new cus-tomers and not cannibalize current demand. Assuming thatthe new equipment is purchased before Eiskaffee is added tothe menu, Harald has developed new average daily demandand cost projections. The new equipment cost is $200, andthe overhead cost is $350. Modified daily demands, as wellas selling price and material costs per beverage for the newproduct line, are given below. a. Calculate the change in labor and multifactor…
Directions Select one of these concepts: How the Aggregate Operations Plan combines required materials, capacity, and staffing. Inputs and application of the different Production Planning Strategies: Chase strategy, level strategy, Stable workforce Aggregate planning techniques that minimize the costs of operations. Application of Materials Requirement Planning methods as a manufacturing scheduling tool Use of Bills of Materials and Lot Sizing in MRP systems
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Production data show 35,920 units were transferred out of a stage of production and 6,150 units remained in ending WIP inventory that was 100% complete to material and 35% complete to conversion. The unit material cost is $5 for material and $8 for conversion. What is the amount of inventory transferred out and remaining in ending work in process inventory? Round to the whole unit and whole dollar, no decimals. Complete the tables below: Equivalent units data Units Materials Conversion Transferred out 35,920 Ending inventory 6,150 Units accounted for, equivalent units Cost data Transferred out $ Ending work in process: materials Ending work in process: conversion Ending work in process: total Costs to account for $ please fill in the information in the grid exactly as provided
Directions Select one of these concepts: How the Aggregate Operations Plan combines required materials, capacity, and staffing. Inputs and application of the different Production Planning Strategies: Chase strategy, level strategy, Stable workforce Aggregate planning techniques that minimize the costs of operations. Application of Materials Requirement Planning methods as a manufacturing scheduling tool Use of Bills of Materials and Lot Sizing in MRP syste After reviewing and analyzing at least one of the current events articles, compose an analysis of that event or situation using the unit operations concept that you selected. Note: Remember to focus upon your selected operations concept in your analysis.
Prepare a master production schedule for industrial pumps in the manner of the following table. Use the MPS rule to "schedule production when the projected on-hand inventory would be less than 10 without production.". Suppose that there are currently 64 pumps in inventory and a production lot size of 70 pumps is used.
The Shades Sunglass Company assembles sunglasses from frames, which it makes,and lenses, which it purchases from an outside supplier. The sales department hasprepared the following 6-week forecast for Ebony, a popular model. The sunglassesare assembled in lots of 220, and the opening inventory is 300 pairs. Complete theprojected available balance and the master production schedule.
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