The Bango Toy Company produces several types of toys to seasonal demand. The forecast for the next six months in thousands of dollarsis given below:July Aug. Sept. Oct. Nov. Dec.Forecast $1000 $1500 $2000 $1800 $1500 $1000A regular employee can produce $10,000 worth of toys per month, and the company has 80 regular employees excel at the end of June. Regular-time employees are paid $3800 per month, including benefits. An employee on overtime produces at the same rate as on regular time but is paid at 150 percent of the regular pay. Up to 20 percent overtime can be used in any one month. A worker can be hired for $1000, and it costs $2000 to lay off an employee. Inventory carrying costs are 30 percentper year. The company wishes to end the year with 80 employees. Beginning inventory of toys is $900,000.a. Calculate the cost of a chase strategy.b. Calculate the cost of a level strategy.c. Using the Excel template, simulate several other strategies.d. Determine the effect on the chase strategy, in part a, of changing the hiring cost to $1500, $2000, and $2500. What do these changes suggest the relationship is between hiring cost and total cost?e. Use the Excel template to study the effect of demand changes on the total cost of the chase strategy. Assume various percentage increases and decreases in demand (110 percent, 120 percent, 210 percent, 220 percent, etc.).
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
The Bango Toy Company produces several types of toys to seasonal demand. The
is given below:
July Aug. Sept. Oct. Nov. Dec.
Forecast $1000 $1500 $2000 $1800 $1500 $1000
A regular employee can produce $10,000 worth of toys per month, and the company has 80 regular employees excel at the end of June. Regular-time employees are paid $3800 per month, including benefits. An employee on overtime produces at the same rate as on regular time but is paid at 150 percent of the regular pay. Up to 20 percent overtime can be used in any one month. A worker can be hired for $1000, and it costs $2000 to lay off an employee. Inventory carrying costs are 30 percent
per year. The company wishes to end the year with 80 employees. Beginning inventory of toys is $900,000.
a. Calculate the cost of a chase strategy.
b. Calculate the cost of a level strategy.
c. Using the Excel template, simulate several other strategies.
d. Determine the effect on the chase strategy, in part a, of changing the hiring cost to $1500, $2000, and $2500. What do these changes suggest the relationship is between hiring cost and total cost?
e. Use the Excel template to study the effect of demand changes on the total cost of the chase strategy. Assume various percentage increases and decreases in demand (110 percent, 120 percent, 210 percent, 220 percent, etc.).
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