Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. Click the icon to view the four-quarter forecast. Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Layoff (Units) Hire Quarter Forecast Production (Units) 1,500 1 1,400 Costs Previous quarter's output Beginning inventory 1,500 units O units $45 per unit $9 per unit for every unit held at the end of the quarter $40 per unit $70 per unit $35 per unit $20 extra per unit Stockout cost for backorders TIE Inventory holding cost Quarter Forecast Hiring workers Layoff workers Unit cost 1 1,400 2 1,000 3 1,600 Overtime 4 1,300 Subcontracting Not available

Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. Click the icon to view the four-quarter forecast. Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Layoff (Units) Hire Quarter Forecast Production (Units) 1,500 1 1,400 Costs Previous quarter's output Beginning inventory 1,500 units O units $45 per unit $9 per unit for every unit held at the end of the quarter $40 per unit $70 per unit $35 per unit $20 extra per unit Stockout cost for backorders TIE Inventory holding cost Quarter Forecast Hiring workers Layoff workers Unit cost 1 1,400 2 1,000 3 1,600 Overtime 4 1,300 Subcontracting Not available

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Deb Bishop Health and Beauty Products has developeda new shampoo, and you need to develop its aggregate schedule.The cost accounting department bas supplied you the costsrelevant to the aggregate plan, and the marketing department hasprovided a four-quarter forecast. All are shown as follows: Your job is to develop an aggregate plan for the next four quarters.a) First, try hiring and layoffs (to meet the forecast) as necessary.b) Then try a plan that holds employment steady.c) Which is the more economical plan for Deb Bishop Healthand Beauty Products?
Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. the four-quarter forecast. Quarter Forecast 1 1,400 2 1,100 3 1,700 4 1,300 the costs relevant to the aggregate plan. Costs Previous quarter's output 1,600 units Beginning inventory 0 units Stockout cost for backorders $55 per unit Inventory holding cost $11 per unit for every unit held at the end of the quarter Hiring workers $50 per unit Layoff workers $75 per unit Unit cost $35 per unit Overtime $20 extra per unit Subcontracting Not available Your job is to develop an aggregate plan for the next four quarters. Part 2 a) Try hiring and layoffs (to meet the forecast) as necessary…
Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. the four-quarter forecast. Quarter Forecast 1 1,400 2 1,100 3 1,700 4 1,300 aggregate plan. Costs Previous quarter's output 1,600 units Beginning inventory 0 units Stockout cost for backorders $55 per unit Inventory holding cost $11 per unit for every unit held at the end of the quarter Hiring workers $50 per unit Layoff workers $75 per unit Unit cost $35 per unit Overtime $20 extra per unit Subcontracting Not available Your job is to develop an aggregate plan for the next four quarters. Part 2 a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole…
The XYZ Company manufactures a seasonal product. At the present time, the company uses a level labor force as a matter of company policy. The company is afraid that if it lays off workers, it will not be able to rehire them or find qualified replacements. Does this company have an aggregate planning problem? Discuss.
A. When the required labor skill is high, it is generally best to pursue which aggregate planning strategy? a. Hybrid - combination of level and chase b. Chase c. Level d. Low job discretion B. If labor turnover is high, it is generally best to pursue which aggregate planning strategy? a. Chase b. Low job discretion c. Hybrid - combination of level and chase d. Level
Planners for a company that makes several models of skateboards are about toprepare the aggregate plan that will cover six periods. They now want toevaluate a plan that calls for a steady rate of regular output, mainly usinginventory to absorb the uneven demand but allowing some backlog. Overtimeand subcontracting are not used because they want a steady output. They intendto start with zero inventory on hand in the first period. Prepare an aggregate planand determine its cost using the following information. Assume a level of outputrate of 300 units per period with regular time. Note that the planned endinginventory is zero. There are 15 workers, and each can produce 20 units per Period 1 2 3 4 5 6 Total Forecast 200 200 300 400 500 200 1800 Cost Information:Regular time = $2 per skateboardOvertime = $3 per skateboardSubcontract = $6 per skateboardInventory = $1 per skateboard per period on average inventoryBack orders = $5 per skateboard per period
A. Planners for a company that makes several models of skateboards are about toprepare the aggregate plan that will cover six periods. They now want toevaluate a plan that calls for a steady rate of regular output, mainly usinginventory to absorb the uneven demand but allowing some backlog. Overtimeand subcontracting are not used because they want a steady output. They intendto start with zero inventory on hand in the first period. Prepare an aggregate planand determine its cost using the following information. Assume a level of outputrate of 300 units per period with regular time. Note that the planned endinginventory is zero. There are 15 workers, and each can produce 20 units perperiod. Period 1 2 3 4 5 6 TotalForecast 200 200 300 400 500 200 1800 Cost Information:Regular time = $2 per skateboardOvertime = $3 per skateboardSubcontract = $6 per skateboardInventory = $1 per skateboard per period on…
. Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must developan aggregate plan given the forecast for engine demand shown in the table. The department has aregular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. Thebeginning inventory is zero engines. Overtime has a cost of $90 per engine.a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Regularproduction can be less than regular capacity. b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carryingcost is $2 per engine per month. Backlog cost is $90 per engine per month. There should not bea backlog in the last month.MONTH1 2 3 4 5 6 7 8 TotalForecast 120 135 140 120 125 125 140 135 1,040
How does the Wilson approach handle demand forecasting and inventory planning for new product launches?
Prepare a Master Schedule like that shown in Figure 11.11 given the following information:The forecast for each week of an eight-week schedule is 50 units. The MPS tule is to schedule production if the projected on-hand inventory would be negative without it. Customer orders (committed) are as follows:Week 1.2.3.4Customer Orders 52.35.20.12Use a production lot size of 75 units and no beginning inventory.
Table shows the aggregate demand requirements of a manufacturing company. The operations manager is going to use a new plan, which begins in January with 200 units on hand and ends with zero inventory in August. Assume, Inventory holding cost is $20 per unit per month and stockout cost of lost sales is $100 per unit. The plan is called plan A. Compute the cost of plan A. Plan A: Vary the workforce level to execute a “chase” strategy by producing the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $5,000 per 100 units. The cost of laying off workers is $7,500 per 100 units. Evaluate this plan.
Develop a chase aggregate plan for Draper using apermanent workforce of 12 employees supplemented by overtime.All demand must be met each period.(a) Show what would happen if this plan were implemented.(b) Calculate the costs associated with this plan.(c) Evaluate the plan in terms of cost, customer service,operations, and human resources.