An engineering plant has developed the accompanying supply, demand, cost and inventory data. The engineering plant has a constant workforce and meets all its demands. Allocate production capacity to satisfy demand at a minimum cost. What is the cost of this plan? (Assume that back ordering is not a viable alternative for the plant) Demand forecast Period Demand (Unit) 1 650 2 700 3 900 Supply Capacity available (units) Period Regular time Overtime Subcontract 1 350 100 250 2 450 100 250 3 500 100 250 Other Data Initial Inventory 100 units Regular-time cost per unit R 50 Overtime cost per unit R 65 Subcontract cost per unit R 80 Carrying cost per unit per period R 1 Back order cost per unit per period R 4

An engineering plant has developed the accompanying supply, demand, cost and inventory data. The engineering plant has a constant workforce and meets all its demands. Allocate production capacity to satisfy demand at a minimum cost. What is the cost of this plan? (Assume that back ordering is not a viable alternative for the plant) Demand forecast Period Demand (Unit) 1 650 2 700 3 900 Supply Capacity available (units) Period Regular time Overtime Subcontract 1 350 100 250 2 450 100 250 3 500 100 250 Other Data Initial Inventory 100 units Regular-time cost per unit R 50 Overtime cost per unit R 65 Subcontract cost per unit R 80 Carrying cost per unit per period R 1 Back order cost per unit per period R 4

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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Mona PLC is a Zambian well-known company that sells goods locally within Zambia. The recently appointed Management Accountant of Mona PLC has been studying the working capital management of the company and has congregated the following information: Inventory management the current policy is to order 100,000 units when the inventory level reduces to 35,000 units. Prediction demand to meet production requirements during the next year is 625,000 units. The cost of placing and processing an order is K250, while the cost of holding a unit in stores is K0.50 per unit per year. Both costs are expected to be constant during the next year. Orders are received two weeks after being placed with the supplier. You should assume a 50- week year and that demand is constant throughout the year. Accounts receivable management Local customers are allowed 30 days’ credit, but the financial statements of Mona PLC shows that the average accounts receivables period in the last financial year was 75 days.…
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I need a detailed explanation and assistance to solve this problem: Wineco produces wine cooler as a blend of wine, grape juice and apple juice ingredients, which it sells for $4 per gallon. The costs of ingredients are given in the following table: Cooler Ingredient Price per Gallon ($) wines 1.20 grape juice 1.40 Apple juice 0.60 Wineco owns a blending plant with a production capacity of 200 gallons per day. Because the plant is fully automated, all other production costs are negligible by comparison to the cost of ingredients, and can be ignored. Government regulations mandate that wine cooler products must satisfy the following guidelines: At least 10% of the blend produced must be grape juice. The ratio of apple juice to grape juice in the blend produced must be 2.5:1 The blend produced must contain between 20% and 25% wine. Wineco wishes to use LP in order to determine the quantities of ingredients to buy for a day’s production of wine cooler, so…

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Period	Regular time	Overtime	Subcontract
1	350	100	250
2	450	100	250
3	500	100	250

Initial Inventory	100 units
Regular-time cost per unit	R 50
Overtime cost per unit	R 65
Subcontract cost per unit	R 80
Carrying cost per unit per period	R 1
Back order cost per unit per period	R 4