Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294 respectively. If a CHASE DEMAND strategy is adopted, and the regular production cost is RO 12 per unit with a maximum regular production of 280 units per period. While, the overtime and subcontract costs are RO 20 and RO 25 per unit respectively, There is no limit on subcontracting: however, maximum overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per period. How many units in total are held as inventory? Select one Oa 40 Ob 51 Oco Od None is correct Oe. 1629

Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294 respectively. If a CHASE DEMAND strategy is adopted, and the regular production cost is RO 12 per unit with a maximum regular production of 280 units per period. While, the overtime and subcontract costs are RO 20 and RO 25 per unit respectively, There is no limit on subcontracting: however, maximum overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per period. How many units in total are held as inventory? Select one Oa 40 Ob 51 Oco Od None is correct Oe. 1629

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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Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.
The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.
Lemingtons is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with mean 400 and standard deviation 100. The contract between Jean Hudson and Lemingtons works as follows. At the beginning of the season, Lemingtons reserves x units of capacity. Lemingtons must take delivery for at least 0.8x dresses and can, if desired, take delivery on up to x dresses. Each dress sells for 160 and Hudson charges 50 per dress. If Lemingtons does not take delivery on all x dresses, it owes Hudson a 5 penalty for each unit of reserved capacity that is unused. For example, if Lemingtons orders 450 dresses and demand is for 400 dresses, Lemingtons will receive 400 dresses and owe Jean 400(50) + 50(5). How many units of capacity should Lemingtons reserve to maximize its expected profit?
The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. Can you guess the results of a sensitivity analysis on the initial inventory in the Pigskin model? See if your guess is correct by using SolverTable and allowing the initial inventory to vary from 0 to 10,000 in increments of 1000. Keep track of the values in the decision variable cells and the objective cell.
The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. As indicated by the algebraic formulation of the Pigskin model, there is no real need to calculate inventory on hand after production and constrain it to be greater than or equal to demand. An alternative is to calculate ending inventory directly and constrain it to be nonnegative. Modify the current spreadsheet model to do this. (Delete rows 16 and 17, and calculate ending inventory appropriately. Then add an explicit non-negativity constraint on ending inventory.)
The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. Modify the Pigskin model so that there are eight months in the planning horizon. You can make up reasonable values for any extra required data. Dont forget to modify range names. Then modify the model again so that there are only four months in the planning horizon. Do either of these modifications change the optima] production quantity in month 1?
Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294 respectively. If a CHASE DEMAND strategy is adopted, and the regular production cost is RO 12 per unit with a maximum regular production of 280 units per period. While, the overtime and subcontract costs are RO 20 and RO 25 per unit respectively. There is no limit on subcontracting however, maximum overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per period. What will be the tatal cost of subrontracting the production? Select one: O a 12/5 O b. 19668 O C. RO0 Odo O e. None is correct
Maha industries produces a product whose anticipated demand for the six periods is 263, 256, 301, 312, 304, and 294. The firm chooses chase demand production strategy. The regular production cost is RO 12 per unit with a maximum regular production of 280 units per period. While, the overtime and subcontract costs are RO 20 and RO 25 per unit respectively. There is no limit on subcontracting; however, maximum overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per period. How many units in total are subcontracted?
For Lodes Company, the relevant range of production is 40–80% of capacity. At 40% of capacity, a variable cost is $4,000 and a fixed cost is $6,000. Explain the behavior of each cost within the relevant range assuming the behavior is linear.
Management at the Kerby Corporation has determined the following aggregated demand schedule (in units):Month 1 2 3 4Demand 500 800 1,000 1,400Month 5 6 7 8Demand 2,000 3,000 2,700 1,500Month 9 10 11 12Demand 1,400 1,500 2,000 1,200An employee can produce an average of 10 units per month. Each worker on the payroll costs $2,000 in regular-time wages per month. Undertime is paid at the same rate as regular time. In accordance with the labor contract in force, Kerby Corporation does not work overtime or use subcontracting. Kerby can hire and train a new employee for $2,000 and lay off one for $500. Inventory costs $32 per unit on hand at the end of each month. At present, 140 employees are on the payroll and anticipation inventory is zero.a. Prepare a production plan that only uses a level workforce and anticipation inventory as its supply options. Minimize the inventory left over at the end of the year. Layoffs, undertime, vacations, subcontracting, backorders, and stockouts are not…
A local manufacturer of Toys produces several toys. Among the most popular is Elsa Doll. Suppose that there are currently 100 Elsa Doll in inventory and that there are customer orders that have been committed and must be filled. Suppose that a production lot size of 150 Elsa Dolls. The weekly forecasts for the eight weeks are 176, 172, 50, 130, 40, 120, 132, and 135 respectively. The customer orders for weeks 1, 2, 3 through 8 are the 88, 86, 25, 65,20,51,0, o respectively. Using the standard principles of Master Production Schedule (MPS) along with Available-To-Promise (ATP) for the Elsa Dolls, what is the Available to promise (ATP) level in week 5 question Select one: a. 162 b. 150 c. None is correct d. 79 e. 2.39
A local manufacturer of Toys produces several toys. Among the most popular is Elsa Doll. Suppose that there are currently 100 Elsa Doll in inventory and that there are customer orders that have been committed and must be filled. Suppose that a production lot size of 150 Elsa Dolls. The weekly forecasts for the eight weeks are 176, 172, 50, 130, 40, 120, 132, and 135 respectively. The customer orders for weeks 1, 2, 3 through 8 are the 88, 86, 25, 65,20,51,0, 0 respectively. Using the standard principles of Master Production Schedule (MPS) along with Available-To-Promise (ATP) for the Elsa Dolls, what is the Available to promise (ATP) level in week 6 Select one: a. 162 b. 150 c. None is correct d. 79 e. 39