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- Terry, Inc., makes gasoline storage tanks. All production is done under contract. The company makes three basic models, but each model must be adapted to customer specifications for the location of outlets, insulation, and paint. It takes from three to six months to complete a tank. How should Terry account for the income for the business?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?Lusail Food aims to produce (30,000) units next year. After studying the time, it turned out that each unit needs: Productive work of four hours per unit (job as a production worker) Marketing work of two hours per unit (Job: Marketing Officer) Administrative work of three hours per unit (Job: Administrative)? Currently working in the company: 14 production workers, 6 marketing staff, and 12 administrators. If you know that the average number of annual working hours available is 2500 hours. What is required is to determine the size of the workforce required for the coming year using workload analysis. Number of production units: Unit Next year Function Required working hours / one unit Annual working hours available to the employee next year Required working hours for next year Required workforce for next year Current number of employees For the current year Surplus or deficit In the workforce Next year Production Factor…
- The textile company “Designs Sports” is dedicated to the production of sports clothing. In its line has shorts, pants and t-shirts. From management they requested to manufacture the quantity of each product to maximize profits. To manufacture each type of garment It goes through two areas, sewing and finishing. Furthermore, all three garments require the same type of fabric. Two people work in the sewing area, while in the production area finished only one. In the company we work 8 hours a day, 5 days a week. The Weekly fabric availability is 375 square meters. Lastly, each shirt contributes $100 US to profits, each short with $80 US; and each pair of pants with $150 US. Solve this operations research problem.Tuff-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component combinations. Identical bicycles are produced in lots of 100. The projected demand, lot size, and time standards are shown in the following table: Item Touring Mountain Demand forecast Lot size Standard processing time Standard setup time 5,000 units/year 100 units .25 hour/unit 2 hours/lot 10,000 units/year 100 units .50 hour/unit 3 hours/lot The shop currently works 8 hours a day, 5 days a week, 50 weeks a year. It operates five workstations, each producing one bicycle in the time shown in the table. The shop maintains a 15 percent capacity cushion. How many workstations will be required next year to meet expected demand without using overtime and without decreasing the firm’s current capacity cushion?Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 50 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows: Standard wage per hour $12.00 Standard labor time per unit 15 min. Standard number of lbs. of brass 1.5 lbs. Standard price per lb. of brass $11.00 Actual price per lb. of brass $11.25 Actual lbs. of brass used during the week 11,124 lbs. Number of units produced during the week 7,200 Actual wage per hour $12.36 Actual hours for the week (50 employees × 32 hours) 1,600 Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit $fill in the blank 1 Direct labor standard cost per unit $fill in the blank 2 Total standard cost per unit $fill in…
- The Chewy Candy Company would like to determine an aggregate production plan for the next six months. The company makes many different types of candy but feels it can plan its total production in pounds provided that the mix of candy sold does not change too drastically. At the present time, the Chewy Company has 70 workers and 9000 pounds of candy in inventory. Each worker can produce 100 pounds of candy a month and is paid $19 an hour (use 160 hours of regular time per month). Overtime, at a pay rate of 150 percent of regular time, can be used up to a maximum of 20 percent in addition to regular time in any month. It costs 80 cents to store a pound of candy for a year, $1,200 to hire a worker, and $1,500 to lay off a worker. The forecast sales for the next six months are 8000, 10,000, 12,000, 8000, 6000, and 5000 pounds of candy. a.Determine the costs of a level production strategy for the next six months, with an ending inventory of 8000 pounds. b.Determine the costs of a chase…The Chewy Candy Company would like to determine an aggregate production plan for the next six months. The company makes many different types of candy but feels it can plan its total production in pounds provided that the mix of candy sold does not change too drastically. At the present time, the Chewy Company has 70 workers and 9000 pounds of candy in inventory. Each worker can produce 100 pounds of candy a month and is paid $19 an hour (use 160 hours of regular time per month). Overtime, at a pay rate of 150 percent of regular time, can be used up to a maximum of 20 percent in addition to regular time in any month. It costs 80 cents to store a pound of candy for a year, $1,200 to hire a worker, and $1,500 to lay off a worker. The forecast sales for the next six months are 8000, 10,000, 12,000, 8000, 6000, and 5000 pounds of candy.a. Determine the costs of a level production strategy for the next six months, with an ending inventory of 8000 pounds.b. Determine the costs of a chase…Furniture Face Lift refinishes old wood furniture. Their process for refinishing chairs has 9 workers and 4 stations. Each chair starts at the Stripping station, then goes to Priming, then to Painting and finally to Inspection. Where there are multiple workers within a station, each worker works independently on his/her own chair. Assume inventory buffers are allowed between each station. Station Staffing Processing time (hours per chair per worker) Stripping 3 2.5 Priming 2 1.5 Painting 3 1.75 Inspection 1 0.8 A truck loaded with 10 chairs arrives. How many hours will it take them to complete these 10 chairs?(The accuracy should be of two digits after the decimal places.)
- The Company makes TSHIRTS at their facility in chicago and Minnesota. The process involves three departments: Cutting, Stuffing, and Sewing. Eddie Edwards is the Manufacturing Manager for acme She has developed a monthly production plan for the next half year: Month 1 2 3 4 5 6 Planned Production (units) 65,000 72,000 74,000 71,000 80,000 82,000 Jamie has also collected some data about each of the production departments: Department Time required per pillow (hours) Total Production Hours Available (monthly) Cutting .25 24,000 Stuffing .45 34,000 Sewing .85 60,000 Jamie needs to assess the capacity implications that the monthly production plan holds for her facilities. Please answer the following questions concerning her situation. a) Calculate the projected monthly capacity utilization (as a percentage of production hours available) for each of the three departments. b) Which department is of greatest concern for Eddie? Why?. c) Please suggest two ways that Eddie might be able to…Because of its labor contract, a company must hire enough labor for 100 units ofproduction per week on one shift or 200 units per week on two shifts. It cannot hire,lay off, or assign overtime. During the fourth week, workers will be available fromanother department to work part or all of an extra shift (up to 100 units). There is aplanned shutdown for maintenance in the second week, which will cut production tohalf. Develop a production plan. The opening inventory is 200 units, and the desiredending inventory is 300 unitsPlease can u answer this true and false 1. The design capacity is often lower than the effective capacity. 2. To improve efficiency firms should train employees and correct quality problems. 3. Mass Customization processes are low volume and low variety 4. Process Strategies have long-term effects on efficiency and production flexibility 5. Continuous processes are high volume but a low variety of products. 6. Modules are parts or components of a product previously prepared, often in a continuous process. 7. Effective capacity is the number of units a facility can hold, receive, store, or produce ha pers 8. Utilization is the theoretical maximum output of a system in a given period under idea conctions