please answer within 30 minutes. Based on the table above, what is the cost of hiringworkers for the 3rd period? Use the following information for problema 43-46. The problem setting will repeat for each question.Currently Company Alpha has a labor force of 10 people, which can produce 50 units per period. The cost of labor is $2.000 per worker per period. No overtime and subcontracting are allowed. As a result, Company Alphacan increase or decrease production by hiring or laying off employees. Hiring cost is $600 per employee and layoff cost is $800 per empuyss. inventory carrying cost is $180 per unit for the entire year. There is 260 unitsbegon ig inventory and the manager want to have an ending inventory of 200 units at the end of june. The production information is given below.Develop a level strategy production plan.MonthJanFeb MarchAprilMayJuneDemand forecast900750700750600800

Since this is a case of hiring and firing, this is categorized as a chase plan. Formulate a…

Answered: Based on the table above, what is the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 42P

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Please answer all subparts questions. Thank you Schedule D: Suppose the regular rate of production is 700 units per period. Further, you are allowed to produce 100 units during each of the periods 3,4, and 5 on an overtime basis, but the subcontractor has gone out of business. You can hire two temporary workers during the periods 3, 4, and 5. Each worker can produce 50 units per period at the regular cost. But it costs $200 to train a worker and check the quality of the product during each of the three periods. (23) The back-order cost for the fifth period is: (a) $200 (b) $400 (c) $500 (d) $1000 (e) none of the above (24) The total cost of meeting the demand is: (a) $17,700 (b) $18,900 (c) $18,300 (d) $17,200 (e) none of the above (25) Which of the following options would help the manager in minimizing the total costs? (a) Regular time production only (b) Combination of regular and overtime production (c) Combination of regular and overtime production, and subcontracting (d)…
Suppose there are two inputs in the production function, labor and capital, and these two inputs are perfect substitutes. The existing technology permits one machine to do the work of three workers. The firm wants to produce 100 units of output. Suppose the price of capital is $750 per machine per week. What combination of inputs will the firm use if the weekly salary of each worker is $300? What combination of inputs will the firm use if the weekly salary of each worker is $225? What is the elasticity of labor demand as the wage falls from $300 to $225?
Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy. b.) Compute the costs of the Level Strategy c.) Compare the costs of the two strategies. Which one is superior?
Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy.
Mack’s guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 100 guitars that begin production each month, only 80 percent are considered good enough to sell. The other 20 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $300. Because some of the production process is automated, each guitar only requires 10 labor hours. Labor is paid at $10/hour, materials cost is $40/guitar, and overhead is $2,000. a) Calculate the labor and multifactor productivities. b) After some study, the operations manager recommends 3 options to improve the company’s multifactor productivity: (1) increase the sales price by 10 percent, (2) improve quality so that only 10 percent are defective, or (3) reduce labor, material, and overhead costs by 10 percent. Which option has the greatest impact on the multifactor productivity measure?
Manufacturing Aggregate Planning Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy. b.) Compute the costs of the Level Strategy c.) Compare the costs of the two strategies. Which one is superior?
ADVANCED ANALYSIS Linear equations for the consumption and saving schedules take the general form: C = a + bY and S = -a + (1-b)Y where C, S, and Y are consumption, saving, and national income, respectively. The constant a represents the vertical intercept, and b represents the slope of the consumption schedule. a. Use the following data to substitute specific numerical values into the consumption and saving equations. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. C = $ Y. S = $ Y. b. What is the economic meaning of b? . What is the economic meaning of (1 – b)? .
Mack’s guitar fabrication shop produces low-cost, highly durable guitars for beginners. Typically, out of the 100 guitars that begin production each month, only 80 percent are considered good enough to sell. The other 20 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $250. Because some of the production process is automated, each guitar only requires 10 labor hours. Each employee works an average 160 hours per month. Labor is paid at $10/hour, materials cost is $40/guitar, and overhead is $4,000.a. Calculate the labor and multifactor productivity ratios.b. After some study, the operations manager Darren Funk recommends three options to improve the company’s multifactor productivity: (1) increase the sales price by 10 percent, (2) improve quality so that only 10 percent are defective, or (3) reduce labor, material, and overheadcosts by 10 percent. Which option has the greatest impact on the…
Please do not give solution in image formate thanku Some of your constraints have slack. What does that mean? Select one: A. Slack indicates how much one additional unit of the resource is worth. B. If more of the resource were available, then profit could increase. C. There is more of the resource than is needed for the best solution. D. Slack indicates the total number of hours.
A company has the following demand data for the last three years of sales for their popular product B. There are currently 5 workers assigned to the production line, each capable of producing approximately 8 units per month. It is assumed that each month has the same number of production days. They can hire more workers at a hiring and training cost of $800 per worker. If they layoff any workers, the unemployment cost is $2,000 per worker. The product has a standard production cost (labor, material, and overhead) of $300 per unit. The extra cost to produce one unit on overtime is $50 and the maximum overtime is two units per month per worker. They can use inventory but it will cost them $25 per unit per month for any unit in inventory at the end of the month. Failure to meet market demand typically will imply the customer will buy from another supplier, and therefore cost the company $100 in profit. They currently have 0 units in inventory. a. Use the demand data to develop a forecast…
If required, round your answers to the nearest whole number. Optimal Solution Units Cost 1-A fill in the blank 34 $ fill in the blank 35 1-B fill in the blank 36 $ fill in the blank 37 1-C fill in the blank 38 $ fill in the blank 39 2-A fill in the blank 40 $ fill in the blank 41 2-B fill in the blank 42 $ fill in the blank 43 2-C fill in the blank 44 $ fill in the blank 45 3-A fill in the blank 46 $ fill in the blank 47 3-B fill in the blank 48 $ fill in the blank 49 3-C fill in the blank 50 $ fill in the blank 51 Total $ fill in the blank 52
1. Rapid-Lube provides oil changes and lubes. The estimated number of oil changes for April and May are 3,600 and 4,000. Each oil change takes 12 minutes of direct labor. The wage rate is $10 per hour. Overhead is $3,700 per month and $2 per oil change. Budgeted overhead for May is $__________________. Budgeted overhead for April is $__________________. Budgeted direct labor for May is $__________________. Budgeted direct labor for April is $__________________. 2. You have decided to throw a party next weekend for 20 friends. The friends are going to bring health food, so all you have to have available are the drinks. You estimate that, on average, each person will drink four bottles of soft drinks. Three of your friends will drink only natural soda without unneeded color  so Sulo Ginger Ale should work well for them. For the others, you decide to buy Sulo Cola. Before going online, you check the refrigerator  you already have six bottles of Sulo Ginger Ale and 14 of Sulo Cola.…

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Based on the table above, what is the cost of hiring workers for the 3rd period?