Pennington Cabinets is a manufacturer of several different lines of kitchen andbathroom cabinets that are sold through major home improvement retailers.Pennington built material requirement planning as follows:Current JanFebMar12001000Gross requirementsScheduled receipts800Projected available balanceNet requirementsPlanned order receipts820Planned order releaseCompute net requirements in Feb.Your Answer:Answer

Given data is Gross requirements for February = 1200 Scheduled receipts in January = 800 Beginning…

Answered: Pennington Cabinets is a manufacturer…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 69P: The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon...

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Production and Materials Purchases Budgets White Corporation’s budget calls for the following sales for next year:Quarter 1 90,000 units Quarter 3 68,000 unitsQuarter 2 76,000 units Quarter 4 96,000 unitsEach unit of the product requires 3 pounds of direct materials. The company’s policy is to begineach quarter with an inventory of product equal to 5% of that quarter’s estimated sales requirementsand an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production.Required Determine the production and materials purchases budgets for the second quarter.
“Mickey Limited is a manufacturing business that uses a standard costing system. The company’s flexed budget for April 20X9 is: Sales £173,340 Costs Direct materials (£22,500) Direct labour (£37,684) Variable production overheads (£15,520) Fixed production overheads (£49,400) Profit 48,236 The company’s directors are presented with the following standard cost operating statement for the month:” Total Original budgeted net profit £44,540 Favourable (Adverse) Sales profit volume variance £3,696 Sales price variance £424 Direct materials price variance £1,372 Direct materials quantity variance £2,560 Direct labour rate variance - - Direct labour efficiency variance £480 Production overhead variance £240…
Barker Company produces and sells a single product with budgeted or standard costs as follows: Inputs Standards Direct materials 10 lbs at $10.00 per pound Direct labor 8 hours at $12.50 per hour Variable factory overhead 8 hours at $20.00 per hour Fixed factory overhead 8 hours at $40.00 per hour Overhead rates are based on 8,000 standard direct labor hours per month, i.e., this is the master budget denominator activity level. Desired ending inventories of materials are based on 10% of the next months materials needed. Desired ending finished goods are based on 5% of next periods budgeted unit sales. Unit Sales are budgeted as follows: January February March April 1,000 1,200 1,600 1,400 The budgeted sales price is $1000 per unit. Sales are budgeted as 80% credit sales and 20% cash sales. Past experience indicates that 60% of credit sales are collected during the month of sale, 38% are collected in the following month, and…
This type of operational planning may cover the medium‐term needs of the business including budgeting, the purchasing and supply system and organisation thereof, purchasing and supply methods, negotiation and development of human resources. (1) Strategic level planning. (2) Tactical or middle‐management planning. (3) Operations level planning. (4) Operational planning. (5) Short‐term planning. This is in fact a production or operations scheduling system and not an inventory control system. It eliminates the holding of inventory and is based on requiring suppliers to deliver materials of the right quality to the business on the day they are needed and where they are needed. (1) Cyclical‐ordering system. (2) Materials‐requirements planning. (3) Just in time. (4) System of fixed‐order quantities. (5) Quick response system.
. Worldwide Can-Openers, Inc., makes a family of two hand-operated can openers. The production plan is based on months. There are 4 weeks in this month. Opening inventory is 2000 dozen, and it is planned to increase that to 4000 dozen by the end of the month. The MPS is made using weekly periods. The forecast and projected available balance for the two models follow. The lot size for both models is 1000 dozen. Calculate the production plan and the MPS for each item.
Suzie’s Sweatshirts is a home-based company that makes upscale, hand-painted sweatshirts for children. Forecasts of sales for the next year are Autumn: 125 Winter: 350 Spring: 75 Each Shirt is sold for $15. The holding cost per shirt is 6% of the selling price per quarter. The shirts are painted by part-time workers who earn $4.50 per hour during the autumn. Because of the high demand for part-time help during the winter holiday season, labor rates are higher in the winter, and Suzie must pay the workers $6.00 per hour. In the spring, labor is more difficult to keep, and Suzie finds that she must pay $5.50 per hour to get qualified help. Each shirt takes 1.5 hours to complete. Formulate the problem to a LP model to help Suzie plan production over the three quarters to minimize the combined production and inventory holding cost. Suppose there is no inventory at the beginning of the autumn. (Note: You do not need to solve the model.)
The Pampered Pet Kennels Company provides room and board for dogs and cats. The manager must mix up pet food everyday for the animals; the food must meet the following standards: Protein At least 6% Fat At most 10% Upon checking the supplies, one day, the manager found that he has the following quantities on hand: Protein Fat Cost/ kilogram Beef stock 10% 20% P 6.00 Flour 5% 5% P 2.00 Formulate the linear programming model to determine how much of each ingredient the manager should mix up to feed the guests today.
Campbell’s Wholesale Company is preparing monthly cash budgets for the fourth quarter of theyear. Monthly sales revenue in this quarter is estimated as follows: October, $30,000; November,$24,000; and December, $20,000. All sales are made on open credit with 70% collected in themonth of sale and 30% collected in the following month. What is the estimated total cash collectedin November? December?
Wine Accessories Inc. (WAI) produces two models of corkscrews, the standard model and a deluxe model. WAI follows a level aggregate plan, producing 20,000 corkscrews per month, or 5000 corkscrews per week. Th e MPS is developed in weekly time periods. Th e forecasts for each model and the projected available are shown in the next two tables. Th e replenishment order quantity is 2000 units for the standard model and 1000 units for the deluxe model. Note that you can place multipleorders if a single order is insuffi cient to cover the forecast (you can produce 4000 units of the standard model if necessary, or 2000 or 3000 units of the deluxe model). Remember that total weekly production is limited to 5000 corkscrews. Develop an MPS for each of the products.
Jean Clark is the manager of the Midtown Saveway-Grocery Store. She now needs to replenish hersupply of strawberries. Her regular supplier can provide as many cases as she wants. However,because these strawberries already are very ripe, she will need to sell them tomorrow and thendiscard any that remain unsold. Jean estimates that she will be able to sell 12, 13, 14, or 15 casestomorrow. She can purchase the strawberries for $7 per case and sell them for $18 per case. Jeannow needs to decide how many cases to purchase. Jean has checked the store’s records on dailysales of strawberries. On this basis, she estimates that the prior probabilities are 0.1, 0.3, 0.4, and 0.2for being able to sell 12, 13, 14, and 15 cases of strawberries tomorrow. a. Develop a decision analysis formulation of this problem by identifying the decisionalternatives, the states of nature, and the payoff table. b. How many cases of strawberries should Jean purchase if she uses the maximin payoffcriterion? c. How…
1. Identify the missing TPS basic activity: data collection, data editing, data _________, data manipulation, data storage, and document production. 2. The amount of support for decision making that a TPS directly provides managers and workers is low. True or False? 3. Which of the following is not one of the basic components of a TPS? a. databases b. networks c. procedures d. analytical models 4. A form of TPS where business transactions are accumulated over a period of time and prepared for processing as a single unit is called _____________. 5. Capturing data at its source and recording it accurately in a timely fashion, with minimal manual effort, and in an electronic or digital form that can be directly entered into the computer are the principles behind _________. 6. Which of the following is a set of transaction processing systems sometimes referred to as the “lifeblood of the organization?” a. purchasing systems b. accounting systems c. order processing systems d. none of…
Kpogas produces chairs and tables. Using economic forecast for the next month, Kpogas’ marketing manager has judged that during that period, it will be possible to sell as many chairs or tables as the company can produce. Management must now recommend a production target for next month. That is, how many chairs and tables should be produced if Kpogas’ management wishes to maximize next month’s profit contribution? Making this decision requires a consideration of the following key factors: ● Kpogas’s unit contribution margin is GH¢ 5,000 on each chair that is sold and GH¢ 4,000 on each table that is sold. ● Each product is put through Kpogas’s machining operations in both department A and department B. For next month’s production, the two departments have 150 and 160 hours available time, respectively. Each chair produced uses 10 hours of machining in department A and 20 hours of machining in department B, whereas each table produced uses 15 hours of machining in department A and 10…

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