4. The opening backlog is 1200 units. Forecast demand is shown below. a. Calculate the weekly production for level production if the backlog is to be reduced to 1000 units, b. Calculate the projected backlog for each week. Week 2 3 4 1100 1200 1200 Forecast 1200 Demand Planned Production Projected Backlog 1200 5 1100 6 1000 Total

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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a. How much should be produced each period?
b. What is ending inventory for each period?
c.
If inventory carrying cost is $3 per case per period based on ending inventory, what is the total
cost of carrying inventory?
d. What is the total plan cost and why?
4. The opening backlog is 1200 units. Forecast demand is shown below.
a. Calculate the weekly production for level production if the backlog is to be reduced to
1000 units,
b. Calculate the projected backlog for each week.
Week
2
4
3
1200
1200
Forecast 1200
Demand
Planned
Production
Projected
Backlog
1200
1100
5
1100
25
20
6
1000
Total
5. A firm plans to make 400 wagons, 200 carts, and 100 sleds. The resource bill shown below
displays the amount of critical resources needed to make one average unit of product family:
Wood (Board Feet)
Labor (Standard Hours)
Product
Wagon
0.75
0.50
1.00
Cart
Sled
30
Calculate the total wood AND labor needed to make the total number of items in the product
family.
Transcribed Image Text:a. How much should be produced each period? b. What is ending inventory for each period? c. If inventory carrying cost is $3 per case per period based on ending inventory, what is the total cost of carrying inventory? d. What is the total plan cost and why? 4. The opening backlog is 1200 units. Forecast demand is shown below. a. Calculate the weekly production for level production if the backlog is to be reduced to 1000 units, b. Calculate the projected backlog for each week. Week 2 4 3 1200 1200 Forecast 1200 Demand Planned Production Projected Backlog 1200 1100 5 1100 25 20 6 1000 Total 5. A firm plans to make 400 wagons, 200 carts, and 100 sleds. The resource bill shown below displays the amount of critical resources needed to make one average unit of product family: Wood (Board Feet) Labor (Standard Hours) Product Wagon 0.75 0.50 1.00 Cart Sled 30 Calculate the total wood AND labor needed to make the total number of items in the product family.
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ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing