QUESTION 5 (AGGREGATE PLANNING-GRAPHICAL METHOD) ...13.11 Deb Bishop Health and Beauty Products has devel- oped a new shampoo, and you need to develop its aggregate sched- ule. The cost accounting department has supplied you the costs relevant to the aggregate plan, and the marketing department has provided a four-quarter forecast. All are shown as follows: QUARTER 1 2 3 4 Previous quarter's output Beginning inventory Stockout cost for backorders Inventory holding cost Hiring workers Layoff workers Unit cost Overtime Subcontracting COSTS FORECAST 1,400 1,200 1,500 1,300 1,500 units 0 units $50 per unit $10 per unit for every unit held at the end of the quarter $40 per unit $80 per unit $30 per unit $15 extra per unit Not available 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 Health and Beauty Products? PX

QUESTION 5 (AGGREGATE PLANNING-GRAPHICAL METHOD) ...13.11 Deb Bishop Health and Beauty Products has devel- oped a new shampoo, and you need to develop its aggregate sched- ule. The cost accounting department has supplied you the costs relevant to the aggregate plan, and the marketing department has provided a four-quarter forecast. All are shown as follows: QUARTER 1 2 3 4 Previous quarter's output Beginning inventory Stockout cost for backorders Inventory holding cost Hiring workers Layoff workers Unit cost Overtime Subcontracting COSTS FORECAST 1,400 1,200 1,500 1,300 1,500 units 0 units $50 per unit $10 per unit for every unit held at the end of the quarter $40 per unit $80 per unit $30 per unit $15 extra per unit Not available 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 Health and Beauty Products? PX

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...

See similar textbooks

Similar questions

Problem 16A: ROLLED DOWN unit forecast for part C is 22, F is 2, I is 254, and L is 3.
Question 16 Daily demand for sandwiches at a local deli is shown in the table. Using a 3 period weighted moving average (most recent demands receive the highest weights) with weights W1 = 0.50, W2 = 0.30 and W3 = 0.20, what is the forecast for day 8? Group of answer choices a. 39.3 sandwiches b. 41.3 sandwiches c. 43 sandwiches d. 43.3 sandwiches e. Impossible to determine
QUESTION 1 Sales of Fat Lips Burgers for 2012 are shown in the table below. 1. Do the 2 month SMA forecast 2. Do 2 month WMA forecast using the information below WMA – 2: last month, 1 – last 2 months 3. For the month of January 2012, the forecast was 438. Do the EMA forecast with the smoothing constant = 0.3. What is the forecast for Jan 2013? 4. Compare the forecasts above using MAD, MSE and MAPE. Which forecast method gives the least errors? Month Actual Sales Forecast Jan 2012 438 Feb 420 March 414 Apr 318 May 306 June 240 July 240 Aug 216 Sep 198 Oct 225 Nov 270 Dec 315 Jan 2013 - QUESTION 2Dayang sells 5 kg bags of fertilizer to local farmers in Tg Karang. The sales data for the past 11 months is shown below. Month Demand (10s of bags) 1 4 2 6 3 4 4 5 5 10 6 8 7 7 8 9 9 12 10 14 11 15 1. Find the forecast for the month 12 using the methods below: a. Simple 4 month moving average (SMA) b.…
QUESTION 5:What is demand forecasting and why it’s vital to the company’s operations?
QUESTION THREEa) Zambia Breweries has a backlog of 250 crates of Fanta drinks at the end of December. The demand of Fanta drinks is expected to be 400 crates in January, 500 crates in February and 550 crates in March. Each worker can produce 50 crates of drinks per month with regular wage costing the company K10 000 per worker per month. Hiring cost has been calculated to be K25 000 per. Hiring cost has also been calculated to be K50 000 per worker. Backlog cost have been determined to cost the company K250 per worker. There are no cost associated with carrying the inventory. Develop a level of production plan (aggregate plan) and determine the cost. b) Explain why aggregate planning is necessary in production and operation management.c) Define the meaning and what happens at each of these aggregate capacity planning;i) Matching Demand approachii) Level Capacity approach.
Question 1: A company that runs a chain of beauty parlours across India and also retails make-up, has defined its core competencies as value creation for the customer, commitment to product quality and professionalism. Identify at least 3 micro competencies under each of the above, which all employees need to exhibit and explain the relevance of each. Question: 2 Tarun is the Business Head for a hardware manufacturing company. Som is the Production Head, in the same salary band as Tarun. How do their roles differ? What are the similarities in their roles?
Question: Develop a problem statement for the scenario given below by considering the variables involved? Suppose you are a manager of a beverage company. You have recently witnessed a sudden decrease in sales. It has been widely accepted that due to Covid-19, the purchasing power of consumers has been declined. On the other hand in such situations, sales personnel avoid roaming for selling to avoid contact. The sudden decrease in the number of hours work and alternate shifts due to Covid-19 SOPs also resulted in a low-profit margin. You have to figure out the actual reason for the decline in sales as a manager.
QUESTION ONE (b) The forecast of a product for the first week of January was 200 units, whereas the actual demand turned out to be 220 units. i. Find the forecast for the week of January assuming the smoothing constant 0.2 α = ii. Find the forecast for the third week of third week of January if the actual demand of the second week is 210 units
QUESTION 4 a. Explain any two process technologies for materials. b. Discuss any three factors that will help to determine the type of production processused. c. Distinguish between design capacity and effective capacity. Provide a briefexample. d. Why is the capacity decision important? e. A regional bank training center has the physical ability to handle 1,300 participants.However, management personnel believe that only 1,100 participants can be handledeffectively for most training sessions. The last training session, although forecasted tohave 1,000 participants, resulted in the attendance of only 990 participants. Calculatethe utilization and efficiency of the training facility.
QUESTION ONE(a) Mr. Sak is interested in developing and marketing a new drug. The cost of extensiveresearch to develop the drug would be 100,000. The manager of research programme saidthat there is 60% chance that the drug will be developed successfully. The market potentialis assessed as follows with present value of profit:Market conditions Probability Present value of profits.Large market potential 0.1 500,000Moderate market potential 0.6 220,000Low market potential 0.3 80,000The present value figures do not include the cost of research. While Mr. Sakala wasconsidering this proposal, another similar proposal came up which also required theinvestment of 100,000. The present value of profit for the second proposal was 120,000.The return on the investment in the second proposal is almost certain.i. Draw a decision tree for Mr. Sak indicating all choices and eventsii. What decision Mr. Sak should take regarding the investment of 100,000?iii. If Mr. Sak is a risk averter, should he…
Question 1: Kimji Company is engaged in the business of export of garments. In the past, the performance of the company had been up to the expectations. In line with the latest technology, the company decided to upgrade its machinery. For this, the Finance Manager, Abdullah estimated the amount of funds required and the timings. This will help the company in linking the investment and the financing decisions on a continuous basis. Abdullah therefore, began with the preparation of a sales forecast for the next four years. He collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources of the business. For the remaining funds he is trying to find out alternative sources from outside like loan from bank etc Answer the following question based on the case study in 500-1000 words. a. What is the role of Financial Management and what are the financial decisions Involved in the above…
Question 21 A CFE of -140 suggests which of the following? Group of answer choices a. There is a bias towards over forecasting, though we cannot determine from the data provided whether that is severe bias or not b. There is a severe bias towards overforecasting c. There is a bias towards under forecasting, though we cannot determine from the data provided whether that is severe bias or not d. There is a severe bias towards under forecasting e. Bias is negligible in this case