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
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- A Pizza Company has a demand forecast for the next 12 months that is shown in Table 1 The current workforce of 100 staff can produce 1500 cases of pizzas per month. (a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan? (b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10 per cent greater than normal working hours? Table 1 demand forecast Month Demand (cases per month) January 600 February 800 March 1000 April 1500 May 2000 June 1700 July…How does the Wilson approach handle demand forecasting and inventory planning for new product launches?Develop a chase aggregate plan for Draper using apermanent workforce of 12 employees supplemented by overtime.All demand must be met each period.(a) Show what would happen if this plan were implemented.(b) Calculate the costs associated with this plan.(c) Evaluate the plan in terms of cost, customer service,operations, and human resources.
- The forecast demand for fudge for the next four months is 120, 160, 20, and 60 pounds. a. What is the recommended production rate if a level strategy is adopted with no backorders or stock outs? b. What is the ending inventory for Month 4 under this plan? c. What is the level production rate with no ending inventory in month 4.The forecasted requirements for an electric hand drill for the next 6 weeks are 15, 40, 10, 20, 50, and 30 units. The marketing department has booked orders totaling 20, 25, 10, and 20 units for delivery in the first (current), second, third, and fourth weeks. Currently, 30 hand drills are in stock. The policy is to order in lots of 60 units. Lead time is one week.a. Develop the MPS record for the hand drills.b. A distributor of the hand drills places an order for 15 units. What is the appropriate shipping date for the entire order?Southeast Soda Pop, Inc., has a new fruit drink forwhich it has high hopes. John Mitten thai, the production planner,has assembled the fo llowing cost data and demand forecast: John's job is to develop an aggregate plan. The three initialoptions he wants to evaluate are:• Plan A: a strategy that hires and fires personnel as necessaryto meet the forecast.• Plan B: a level strategy.• Plan C: a level strategy that produces 1,200 cases per quarterand meets the fo recast demand with inventory and subcontracting.a) Which strategy is the lowest-cost plan?b) If you are John's boss, the VP for operations, which p lan doyou implement and why?
- Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. the four-quarter forecast. Quarter Forecast 1 1,400 2 1,100 3 1,700 4 1,300 the costs relevant to the aggregate plan. Costs Previous quarter's output 1,600 units Beginning inventory 0 units Stockout cost for backorders $55 per unit Inventory holding cost $11 per unit for every unit held at the end of the quarter Hiring workers $50 per unit Layoff workers $75 per unit Unit cost $35 per unit Overtime $20 extra per unit Subcontracting Not available Your job is to develop an aggregate plan for the next four quarters. Part 2 a) Try hiring and layoffs (to meet the forecast) as necessary…. Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must developan aggregate plan given the forecast for engine demand shown in the table. The department has aregular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. Thebeginning inventory is zero engines. Overtime has a cost of $90 per engine.a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Regularproduction can be less than regular capacity. b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carryingcost is $2 per engine per month. Backlog cost is $90 per engine per month. There should not bea backlog in the last month.MONTH1 2 3 4 5 6 7 8 TotalForecast 120 135 140 120 125 125 140 135 1,040Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?
- Prepare a Master Schedule like that shown in Figure 11.11 given the following information:The forecast for each week of an eight-week schedule is 50 units. The MPS tule is to schedule production if the projected on-hand inventory would be negative without it. Customer orders (committed) are as follows:Week 1.2.3.4Customer Orders 52.35.20.12Use a production lot size of 75 units and no beginning inventory.The opening backlog is 800 units. Forecast demand is as shown here. Calculate theweekly production for level production if the backlog is to be reduced to 100 units.Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a regular output capacity of 135 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $100 per engine. a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than regular capacity. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month. Backlog cost is $120 per engine per month. There should not be a backlog in the last month. Set regular production equal to the monthly average of total forecasted demand. Assume that using overtime is not an option. (Negative amounts…