Jose Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a "showpiece" for display in Mexican restaurants. His forecast of capacity and demand follows: Month 4 220 1 2. Demand Сарacity Regular time Overtime 150 160 130 230 150 10 140 140 160 150 30 20 20 20 Subcontracting: 90 units available over the 5-month period Beginning inventory: 0 units Ending inventory required: 10 units Costs Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Inventory holding cost per unit per month $80 $115 $122 $2 Assume that backorders are not permitted. Using the transportation method, the total cost of the optimal plan is S (enter your respornse as a whole number).
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- Jose Martinez of El Paso had developed a polished stainless-steel tortilla machine that makes it a “showpiece” for display in Mexican restaurants. He needs to develop a 5-month aggregate plan. His forecast of capacity and demand follows: Month 1 2 3 4 5 Demand 150 160 130 200 210 Regular capacity 150 150 150 150 150 Overtime capacity 20 20 10 10 10 Subcontracting: 100 units available over the 5-month period (NOT 100 units each month) Beginning inventory: 0 units Ending inventory required at the last month (i.e. month 5): 20 units. Costs Regular-time cost per unit $100 Overtime cost per unit $125 Subcontracting cost per unit $135 Inventory holding cost per unit per month $3 Assume that backorders are not permitted. a) Find an aggregate production plan using the intuitive lowest cost approach. (i.e. Develop an aggregate plan using the transportation method). b) State the corresponding…Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?Assume an initial starting Ft of 200 units, a trend (Tt ) of 8 units, an alpha of 0.30, and a delta of 0.40. If actual demand turned out to be 288, calculate the forecast including trend for the next period.
- The planner at a company that makes garden tractors is about to prepare an aggregate production plan that will cover the next 6 months. She has collected the following information: Month Demand Forecast Above the available capacity through permanent workforce 1 1,000 2 1,000 3 2,000 4 3,000 5 4,000 6 1,000 Total: 12,000 Production per month = 20 units per worker Initial inventory = 500 units Desired ending inventory (at the end of month 6) = 0 units Cost: Hire cost = $500 per temporary worker Inventory = $10 per tractor per month Backorder = $150 per tractor per month The optimum aggregate plan is: Month 1 2 3 4 5 6 Total Forecast Demand above regular capacity 1,000 1,000 2,000 3,000 4,000 1,000 12,000 # of temporary workers required 50 50 100 150 200 50 Temp. Workers hired 25 25 50 75 0 0 Temp. workers laid off 0…You have been asked to estimate the cost of 100 prefabricated structures to be sold to a local school district. Each structure provides 1,000 square feet offloor space, with 8-feet ceilings. In 1999, you produced 70 similar structures consistingof the same materials and having the same ceiling height, but each provided only 800square feet of floor space. The material cost for each structure was $25,000 in 1999, andthe cost capacity factor is 0.65. The cost index values for 1999 and 2006 are 200 and 289,respectively. The estimated manufacturing cost for the first 1,000-square-foot structureis $12,000. Assume a learning curve of 88% and use the cost of the 50th structure asyour standard time for estimating manufacturing cost. Estimate the total material costand the total manufacturing cost for the 100 prefabricated structures.Shoney Video Concepts produces a line of video streaming servers that are linked to personal computers for storing movies. These devices have very fast access and large storage capacity. Shoney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level is to be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause any adverse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if that is not the lowest-cost alternative. The forecast for the next 12 months is Month Demand Forecast January 600 February 800 March 900 April 600 May 400 June 300 July 200 August 200 September 300…
- Tonya Stephani is the front office manager/RM at the 200-room Hilton Garden hotel. Tonight, she has 100 stay-over rooms and 100 arrivals. Based on her own forecasts, she anticipates 10 no-shows tonight. The average rate to be paid by each arriving guest is $199.99. Tonya has a signed agreement with the local Sheraton hotel that states each property is willing (subject to blackout dates) to accept the other’s walks at the rate of $99.00 per night. Tonight, the Sheraton has available rooms and has agreed to take up to ten walked guests. The cost of transporting guests to the Sheraton and back, as well as other walk related costs incurred by the Hilton, average $15.00 per room. Assume Tonya decides to overbook by ten rooms. Excluding any potential no-show billings, how much extra room revenue will be gained from overbooking if Tonya indeed experiences ten no-shows but overbooks by ten rooms and thus achieves a 100 percent occupancy? How much extra cost will the hotel incur if it sells…A Pizza Company has a demand forecast for the next 12 months that is shown in Table 1 The current workforce of 100 staff can produce 1500 cases of pizzas per month. (a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan? (b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10 per cent greater than normal working hours? Table 1 demand forecast Month Demand (cases per month) January 600 February 800 March 1000 April 1500 May 2000 June 1700 July…A manufacturing company produces single item product. Theproduction manager decide to arrange 6 periods for MPS. Data aboutdemand forecasts are 112, 157, 126, 176, 124 and 181 while data aboutcustomer orders are 128, 156, 196, 147, 152 and 175. On hand inventoryis 300 units and production batch is 300 units. The productionmanager also decide that 3 beginning periods are critical, so that nochanges are allowed. Arrange MPS for that situation ! When system’s bottleneck requires 10 minutes to finish a unit product,make analysis about capacity. What is your suggestion? please explain it using excel or attached the excel sheet
- 1: Suppose the company has identified the following three possible demand scenarios: Demand (Units per year) Probability 25,000 0.3 60,000 0.4 100,000 0.3 1. If the capacity is set at 80,000, how much of a capacity cushion is here? What is the capacity utilization? 2. What is the probability of idle capacity if the capacity is 80,000? 3. If it costs $25 per units lost business and $50 to build a unit of capacity, how much capacity should be built to minimize total cost?A forecast of 320 units in January, 400 units in February,and 240 units in March has been approved for the seismic-sensory product family manufactured at the Rockport facilityof Maryland Automated, Inc. Three products, A, B, and C,comprise this family. The product mix ratio for products A,B, and C for the past 2 years has been 35 percent, 40 percent,and 25 percent, respectively. Management believes that themonthly forecast requirements are evenly spread over the4 weeks of each month. Currently, 15 units of product C areon hand. The company produces product C in lots of 40, andthe lead time is 2 weeks. A production quantity of 40 unitsfrom the previous period is scheduled to arrive in week 1. Thecompany has accepted orders of 25, 9, 11, 5, 4, and 9 unitsof product C in weeks 1 through 6, respectively. Prepare aprospective MPS for product C and calculate the available-to-promise inventory quantitiesA forecast of 240 units in January, 320 units in February, and 240 units in March has been approved for the seismic-sensory product family manufactured at the Rockport facility of Maryland Automated, Inc. Three products, A, B, and C, comprise this family. The product mix ratio for products A, B, and C for the past 2 years has been 35 percent, 40 percent,and 25 percent, respectively. Management believes that the monthly forecast requirements are evenly spread over the 4 weeks of each month. Currently, 10 units of product C are on hand. The company produces product C in lots of 40, and the lead time is 2 weeks. A production quantity of 40 units from the previous period is scheduled to arrive in week 1. Thecompany has accepted orders of 25, 12, 8, 10, 2, and 3 units of product C in weeks 1 through 6, respectively. Prepare a prospective MPS for product C and calculate the availableto-promise inventory quantities.