#7A toy manufacturing company has prepared its forecasted demand for the next six months. Develop an aggregate plan to meet this demand given thisadditional information. A level production rate of 100 units per month will be used. Backorders are allowed, and they are charged at the rate of RM10 per unitper month. Inverntory holding costs are RM2 per unit per month. Determine the cost of this plan if the regular time cost is RM20 per unit and the beginninginventory is zero.MonthJanuaryFebruaryMarchForecasted Demand06110120110AprilМay100June90AnswerA RM12.20O2014 - 2022Chat With UsENG9.26 AMUS2/22/2022

An aggregate plan is a tool used to balance the demand and supply for a product over the medium time…

Answered: #7 A toy manufacturing company has…

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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Explain how aggregate planning is different when thecompany does not provide a tangible product.
HB Corporation in Delaware, U.S., makes and sells a single product. The company operates a standard costing system and a just-in-time purchasing and production system. No inventory of raw materials or finished goods is held. Details of the budget and actual data for the previous period are given below: Budget data Standard production costs per unit (currency in U.S. dollar, $): Direct material 8kg @$10.80 per kg 86.40 Direct labor 1.25 hours @$18.00 per hour 22.50 Variable overheads 1.25 hours @$6.00 per direct labor hour 7.50 Standard selling price: $180 per unit Budgeted fixed production overheads: $170 000 Budgeted production and sales: 10 000 units Actual data Direct material: 74 000kg @$11.20 per kg Direct labor: 10,800 hours @$19.00 per hour Variable overheads: $70,000 Actual selling price: $184 per unit Actual fixed production overheads: $168 000 Actual production and…
Chapter 13 Homework Kansas Furniture has received the following demand requirements: Month Demand July 1,000 August 1,200 September 1,400 October 1,800 November 1,800 December 1,600 Stockout costs are $100 per unit Inventory costs are $25 per unit per month No inventory left over from June for plans A, B, and D. Plan A: Produce at a steady rate equal to minimum requirements and subcontract the rest at $60 per unit. Store additional units in inventory. What is the total cost? Plan B: Vary the workforce. June’s production was 1,300 units. The cost of hiring is $3,000 per 100 units. The cost of layoffs is $6,000 per 100 units. What is the total cost? Plan C: Keep the current workforce steady at a level producing 1,300 units per month. Subcontract the remainder to meet demand at $60 per unit. Assume 300 units in inventory available at end of June and usable in July. What is the total cost? Plan D: Keep the…
Q2) Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 1500 units 1 1400 Beginning inventory 200 units 2 1000 Stockout cost $50 per unit 3 1500 Inventory holding cost $8 per unit at end of quarter 4 1300 Hiring workers $5 per unit Laying off workers $10 per unit Unit cost $30 per unit Overtime $10 extra per unit Which of the following production plans is better: Plan A—chase demand by hiring and layoffs; or Plan B—produce at a constant rate of 1200 and obtain the remainder from overtime? Finish the calculation. image
2. Aggregate planning has been described as the process of matching supply and demand over a medium time horizon. What are some ways this can be accomplished?
What are major limitations of using the tra nspo rtation method for aggregate planning?
Activity # 4 Preparation of Statement of Comprehensive Income1. Compute for the Cost of Goods Sold using the following: • Sales – 15,000 • Purchases – 2,000 • Purchase returns – 200 • Purchase discounts – 200 • Freight in – 100 • Beginning inventory – 1,000 • Ending inventory – 500
Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $22,400 (as shown in the statement below) inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve profit line to $32,400 so he can obtain the bank's approval for the loan. % of sales Sales 280,000 100% Cost of supply chain purchases 201,600 72% Other production costs 28,000 10% Fixed costs 28,000 10% Profit 22,400 8% Part 2 a) What percentage…
What is the managerial significance of aggregate planning. Explain
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,240 February 4,340 March 4,040 April 4,440 May 5,040 June 4,740 July 5,340 August 4,940 September 5,440 October 5,740 November 6,335 December 6,030 a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 4 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round…
From Chapter 13: Aggregate Plan Q2) Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 1500 units 1 1400 Beginning inventory 200 units 2 1000 Stockout cost $50 per unit 3 1500 Inventory holding cost $8 per unit at end of quarter 4 1300 Hiring workers $5 per unit Laying off workers $10 per unit Unit cost $30 per unit Overtime $10 extra per unit Which of the following production plans is better: Plan A—chase demand by hiring and layoffs; or Plan B—produce at a constant rate of 1200 and obtain the remainder from overtime? Finish the calculation. Plan A: Eagle Fabrication Solution Demand Regular Time Capacity Regular Time Production Hire Fire Initial Inventory Period 1 1,400 1200 Period 2 1,000…
The president of Hill Enterprises, Terri Hill, projectsthe firm’s aggregate demand requirements over the next 8 monthsas follows:Jan. 1,400 May 2,200Feb. 1,600 June 2,200Mar. 1,800 July 1,800Apr. 1,800 Aug. 1,800 Her operations manager is considering a new plan, whichbegins in January with 200 units on hand. Stockout cost of lostsales is $100 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 thatproduces the quantity demanded in the prior month. TheDecember demand and rate of production are both 1,600 unitsper month. The cost of hiring additional workers is $5,000 per100 units. The cost of laying off workers is $7,500 per 100 units.Evaluate this plan.

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