If a Level Production strategy is used, the annual inventory cost is: 14000 69000 168000 172000
Q: The Grinell Machine Shop makes a line of metal tables.Some of these tables are carried in finished…
A: Demand or Sales = 300 Odering cost (O) = 1200 Holding or carrying cost (H) = 20% i.e 0.2 & Total…
Q: In a synchronous production strategy, storage and shortage costs tend to be high.
A: Synchronous manufacturing is where production takes place at different centers. The rate of…
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A: Given Units produced per lot = 250 units Raw material cost for the part = $150 Value added in…
Q: A firm practices a pure level strategy that sets the production level at the average demand over the…
A: Given that: Demand over the next four quarters: 867,1032,1006,961 Production cost = $17 per unit…
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A: The safety stock is given as 500 units. New interval is 5 weeks and old interval is 4 weeks. New…
Q: The Grinell Machine Shop makes a line of metal tables. Some of these tables are carried in finished…
A: Given Information: Sales = 300 per year Set up cost = $ 1200 per setup Carrying cost = 20 percent…
Q: The amount of time the product remains in various stages of completion is called: a. Average Payment…
A: Product planning and its development is an essential function since development different products…
Q: This is in fact a production or operations scheduling system and not an inventory control system. It…
A: Option 3 is correct, The reason is that just-in-time is an inventory management technique designed…
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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: What is the EOQ? What is the average inventory if the EOQ is used? What is the optimal number of…
A: WE ARE ALLOWED TO DO THE FIRST THREE SUBPARTS ONLY. THE ANSWER IS AS BELOW:
Q: An item has a setup cost for production of $500 per order, and the inventory carrying costs for the…
A: The Economic Order Quantity is a set point designed to help companies minimize the cost of ordering…
Q: 1. What inventory management model should we use to solve this problem? Model Economic Quantity to…
A: NOTE: We are allowed to do first three sub-parts only. Please post rest parts again to get answers.…
Q: What is the reduction in average inventory of our turns increase to 10 per year? Show calculations
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Q: Basic EOQ Model Item X is a standard item stocked in a company's inventory of spare parts. Each…
A: Introduction: The term Business refers to an exchange of goods and services between the buyer and…
Q: One 100 units per day. Safety stock is dimensioned to meet 95% of demand requirements considered…
A: The maximum stock level is a not-to-surpass sum utilized for inventory planning. This stock level…
Q: A firm practices a pure level strategy that sets the production level at the average demand over the…
A: Given Data: The demand for the next four months is given as: 868, 960,860, and833.
Q: a.Compute the minimum cost production lot size for each of the following production rates. (Round…
A: In the above question, the assumption in the operation line is provided as. Now for the provided…
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A:
Q: If Great Northern Bunk Beds has an average in-process inventory of 10 bunk-bed sets and an average…
A: Throughput time is a measure of the time required for material, part or sub-assembly to pass through…
Q: Terminator, Inc., manufactures a motorcycle part in lots of 300 units. The raw materials cost for…
A: Given data: Lot size(Q) = 300 units Raw material cost = $170 Value added in manufacturing per unit…
Q: What is the optimal lot size of part 2?
A: Below is the solution:-
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A: Given: Co: Cost of overstocking by one unit, Co = c – s Cu: Cost of understocking by one unit,…
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Q: The UK Bike Company requires 6000 handlebars per year for one of its city bikes. You can assume that…
A: Given data: Annual demand D = 6000 handlebars Annual production P = 11000 units Setup cost S = £350…
Q: A part is produced in lots of 1,000 units. It is assembled from 2 components worth $50 total. The…
A: Formulas:
Q: The need for a component is 1400 units per month. The setting-up charge is 110 per batch. The…
A: Given- Monthly demand = 1,400 units Setting-up cost = 110 per batch Production unit cost = 23 per…
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A: Economic Order Quantity is a method utilized to determine inventory stocking levels. Its principal…
Q: John holds the position of operations manager for a small manufacturing company. His job description…
A: Given, Demand = 8000 units per day Annual demand D = 8000*300 = 2400000 Holding cost H = $22.5 Setup…
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A: Given: Annual demand (D) =9,000 units Daily demand (d) = 60 units/dayProduction per day (P) = 80…
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A: Given data is Production rate(p) = 400 per day Demand(d) = 3000 Set up cost(S) =$100
Q: Q1) Bullwhip effect can lead to stock shortages due to lack of proper information. Select one: a.…
A: Demand differences can chief to inventory variations to get out of controller if careful…
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A:
Q: or the management of __R___
A: Batch size is the number of items created in a manufacturing run. When there is a substantial setup…
Q: This is in fact a production or operations scheduling system and not an inventory control system. It…
A: Most manufacturing organizations divide their inventory into raw materials, work-in-process,…
Q: 9. XYZ has developed the following data from its Material A Safety stock Average (normally) daily…
A: The detailed solution to both the questions is given in Step 2.
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A: Activity-based costing and management focus on improving the tracing of manufacturing cost and…
Q: The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is…
A: From the above given information, Demand for SKU OO5, d = 1500 units. Unit price of SKU 005, u = $64…
Q: A firm practices a pure level strategy. with 1425 units per quarter. Demand over the next four…
A: Total production for four quarters = 1425*4= 57,00 unitsTotal demand for next four quarters = (…
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A: Given: Average Daily demand = 15.2 Standard deviation of daily demand = 1.6 Review period R = 30…
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A: Given that: New Orders (O)= 125 units Variable Cost (VC)= $11,400 Credit Price (CP) = $13000 Repeat…
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A:
Q: Which of the following will have lesser bullwhip effect in a supply chain? Supply Chain…
A: THE ANSWER IS AS BELOW:
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- 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?
- Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?How much influence can the employee requirements for one, two, or three days have on the weekly schedule in the employee scheduling example? Explore this in the following questions: a. Let Monday’s requirements change from 17 to 25 in increments of 1. UseSolverTable to see how the total number of employees changes.b. Suppose the Monday and Tuesday requirements can each, independently of one another, increase from 1 to 8 in increments of 1. Use a two-way SolverTable to see how the total number of -employees changes.c. Suppose the Monday, Tuesday, and Wednesday -requirements each increase by the same amount, where this increase can be from 1 to 8 in -increments of 1. Use a one-way SolverTable to -investigate how the total number of employees changes.How much influence can the employee requirements for one, two, or three days have on the weekly sched-ule in the employee scheduling example? Explore this in the following questions:a. Let Monday’s requirements change from 17 to 25in increments of 1. Use SolverTable to see how thetotal number of employees changes.b. Suppose the Monday and Tuesday requirementscan each, independently of one another, increasefrom 1 to 8 in increments of 1. Use a two-waySolverTable to see how the total number ofemployees changes. c. Suppose the Monday, Tuesday, and Wednes-day requirements each increase by the same amount, where this increase can be from 1 to 8in increments of 1. Use a one-way SolverTableto investigate how the total number of employeeschanges.
- The Westerbeck Company manufactures several models of automatic washers and dryers. The projected requirements over the next year for their washers are shown in the table below: Month & Requirement January - 710 February - 1090 March - 880 April - 690 May - 1400 June - 1130 July - 1550 August - 1020 September - 530 October - 390 November - 980 December - 1210 Current inventory is 140 units. Current capacity is 1,030 units per month. The average salary of production workers is $1,150 per month. Material costs $140/unit. Each production worker accounts for 35 units per month. Overtime is paid at time and a half. Any increase or decrease in the production rate costs $40/unit for tooling, setup, and line changes. This does not apply, however, to overtime. Inventory-holding costs are $30 per unit per month. Lost sales are valued at $70 per unit. Compare the costs of level and chase demand production plans using the Agg Plan – Level and Agg Plan – Chase…A company is preparing an aggregate production plan for its product for the next four months. The company's expected monthly demand is given in the following table. The company will have 100 million in inventory at the beginning of this month and wishes to hold at least 100 Units at the end of each month.Important data is shown below: production cost per unit =$125 cost of inventory storage per month per unit =$10 cost of hiring per worker =$50 firing cost per worker =$100 initial number of workers =25 each worker can produce =25 units per month Month->expected demand: M1 ->600 M2->800 M3->700 M4->900 What is the total cost of a chase plan that uses only hiring/firing?A paper published in the Harvard Business Review points out a new way to calculate economic profit that could be more appropriate for service firms and other people-intensive companies. Instead of focusing on investment and return on investment, the focus is on employee productivity, both in terms of generating revenues and reducing costs. The approach is to first determine economic profit in the conventional way, except that we ignore taxes, so that economic profit is before tax, as follows: Economic profit = Operating profit − Capital charge Assume the following information for a hotel chain that wishes to adopt the new method. The firm has $100 million in operating profit, has $1 billion in investment, and uses a cost of capital rate of 5%, so the capital charge is $50 million and the economic profit is $50 million. Relevant calculations are contained in Part 1 of the following schedule: Part 1: Economic Profit (in thousands, except cost of capital rate) Revenue $…
- RMC, Inc., is a small firm that produces a variety of chemical products. In a particular production process, three raw materials are blended (mixed together) to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of 25 ton of material 1 and 35 of material 3. A ton of solvent base is a mixture of 12 ton of material 1, 15 ton of material 2, and 310 ton of material 3. After deducting relevant costs, the profit contribution is $40 for every ton of fuel additive produced and $30 for every ton of solvent base produced. RMC’s production is constrained by a limited availability of the three raw materials. For the current production period, RMC has available the following quantities of each raw material: RAW MATERIAL Amount Available for Production Material 1 20 Tons Material 2 5…The cost data for Evencoat Paint for the year 2019 is as follows: Month Gallons ofPaintProduced EquipmentMaintenanceExpenses January 110,000 $70,700 February 68,000 66,800 March 71,000 67,000 April 77,000 68,100 May 95,000 69,200 June 101,000 70,300 July 125,000 70,400 August 95,000 68,900 September 95,000 69,500 October 89,000 68,600 November 128,000 72,800 December 122,000 71,450 A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Fixed cost $ Variable cost $At modern woodworks, president and producer of apple crates sold to growers, has been able, with his current equipment, to produce 240 crates per 100 logs. He currently purchases 100 logs per day, and each log requires 3 labor hours to process. He believes that he can hire a profesional buyer who can buy a better quality log at the same cost. if this is the case, he can increase hos production to 260 crates per 100 logs. His labour-hours will increase by 8 hours per day. What will be the impact on productivity (measured in crates per labor-hour) if the buyer is hired?