The production planner of a company forecasts the sales over the next five years as 220, 205, 340, 130, and 300 packages, respectively. The planner estimates that there will be 40packages on hand at the end of this year and she wants the ending inventory to be 50 packages at the end of the next five years. Assume that each worker produces 70 packagesper year. The company uses level strategy and shortages are not allowed. What is the minimum constant workforce over the next five years?O a 5O b. 6OC.4O d. 8O e. 7

Production planning is the process of defining a roadmap for the design and manufacture of a product…

Answered: The producton plani ra company…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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Leather-All produces a line of handmade leather products. At the present time, the company is producing only belts, handbags, and attache cases. The predicted demand for these three types of items over a six-month planning horizon is as follows: Month No. of Belts Handbags Attache CasesWorking days1 22 2500 1250 2402 20 2800 680 3803 19 2000 1625 1104 24 3400 745 755 21 3000 835 1266 17 1600 375 45 The belts require an average of two hours to produce, the handbags three hours, and the attache cases six hours; all the workers have the skill to work on any item. Leather-All has 46 employees who each have a share in the firm and cannot be fired. There are an additional 30 locals that are available and can be hired for short periods at a higher cost. Regular employees earn $8.50 per hour on regular time, and $14.00 per hour on overtime. Regular time comprises a seven-hour workday and the regular employees will work as much overtime as is available. The additional workers are hired for…
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…
Mark has a company that produces tables and chairs, both having two different models. The product models and related information are given in the following table. Wood costs 3000 $ per cubic meter and 200 m3 of wood are available for the upcoming month. The cost of labor is 40 $/hour and there are 6000 hours of labor available in a month. Mark sells his products to a big chain retail company. The company purchases all products whatever Mark produces. Mark formulates an LP as follows to determine the optimal monthly production plan such that he maximizes the total profit. Decision Variables: X1 : number of basic tables to be produced. X2 : number of elegant tables to be produced. X3 : number of basic chairs to be produced. X4 :number of elegant chairs to be produced. Max Z = 140 X1 + 345 X2 + 120 X3 + 260 X4 ( maximize total profit) Subject to 0.11 X1 + 0.13 X2 + 0.06 X3 + 0.07 X4 ≤ 200 (constraint on the available amount of wood) 2 X1 + 4.5 X2 + 1.5 X3 + 4 X4 ≤ 6000…
A manufacturer of television sets made four models – Sport, Standard, Traveler and Super.Each set requires assembly and test operations. The assembly time for the models is 8, 10,12,15 hours respectively.The test time is 2,2,4 and 5 hours. The company has 2000 hours for assembling and 500 hoursfor testing. The marginal profit for the four products is 40, 60, 80 and 100 dollars. The supplierof screens indicated that he is not able to supply more than 180 pcs. and not more 100 of themcan be for the models Traveler and Super.a) What is the optimal production schedule?b) Is there any alternative optimal schedule?c) Suppose that 80 additional hours of test time could be obtained from the outside at price$4 per hour. Should this be done?d) What is the marginal value?
You manage a production line that operates using a monthly production cycle. There are five different products that could be made this month. However, you only have 500 hours of line capacity, so you must be careful which products you select to make in the production cycle. Making a product incurs two types of setup costs: (1) a material “tear down” cost (measured in dollars) and (2) downtime for line preparation (measured in hours). Any quantity up to the forecasted monthly demand can be sold. Additional production details are given in the table below: Product 1 Product 2 Product 3 Product 4 Product 5 Monthly Demand 1000 units 1100 units 1700 units 1600 units 1500 units Revenue (per unit) $150 $175 $155 $200 $225 Production Cost (per unit) $60 $70 $60 $100 $110 Set Up Cost $10000 $15000 $25000 $10000 $5000 Set Up Time 25 hrs 15 hrs 0 hrs 10 hrs 30 hrs Production Time (per unit) .1 hrs .12…
A retailer has two merchandizers, Sue and Bob, who are responsible for setting orderquantities for the products they manage. For all of their products, the critical ratio is .7and the coefficient of variation of their demand forecasts is 0.35. At the end of the season, Sue is proud to report that she has sold the entire inventory she purchased. Bob, onthe other hand, sold only about a third of his products. Who is more likely to be choosing quantities that maximize expected profit? a. Sue because she doesn’t incur the cost of salvaging inventory.b. Sue because she must have sold more units than Bob.c. Bob because even leftover inventory generates some additional revenue.d. Bob because he is probably ordering more than the mean of the demand forecast.
Suppose 100,000 lamps are to be manufactured annually. It costs $1 to store a lamp for 1 year, $500 to set up the factory to produce a batch of lamps and $5 to produce each lamp. A. If all lamps are produced in one batch find the total cost? B. If all lamps are produced in two batches of equal size, find the total cost? C. If the number of units in each batch is q, then how many batches are there? D. Find the number of lamps in each batch to minmize the total cost? E. What is the minimum cost? [ i need all answer i will upvote]
A company is preparing an aggregate production plan for its product for the next four months. The company's expected monthly demand is given in the following table. The company will have 100 million in inventory at the beginning of this month and wishes to hold at least 100 Units at the end of each month.Important data is shown below: production cost per unit =$125 cost of inventory storage per month per unit =$10 cost of hiring per worker =$50 firing cost per worker =$100 initial number of workers =25 each worker can produce =25 units per month Month->expected demand: M1 ->600 M2->800 M3->700 M4->900 What is the total cost of a chase plan that uses only hiring/firing?
Dr. Thompson makes three bean mixes for coffee shops located in the Austin. The three mixes, referred to as the Tameka Mix, the Christian Mix, and the Tamia Mix, are made by mixing different percentages of five types of beans. In preparation for the fall season, Dr. Thompson just purchased the following shipments of beans at the prices shown: Type of Beans Shipment Amount in pounds Cost Per Shipment in dollars Arabica 6000 7500 Robusta 7500 7125 Liberica 7500 6750 Excelsa 6000 7200 Juno 7500 7875 The Tameka Mix consists of 15% Arabica, 25% Robusta beans, 25% Liberica, 10% Excelsa, and 25% Juno. The Christian Mix consists of 20% of each type of beans, and the Tamia Mix consists of 25% Arabica, 15% Robusta beans, 15% Liberica, 25% Excelsa, and 20% Juno. Dr. Thompson analyzed the cost to get the beans ready and determined that the profit contribution per pound is $1.65 for the Tameka Mix, $2.00 for the Christian Mix, and $2.25 for the…
Dr. Thompson makes three bean mixes for coffee shops located in the Austin. The three mixes, referred to as the Tameka Mix, the Christian Mix, and the Tamia Mix, are made by mixing different percentages of five types of beans. In preparation for the fall season, Dr. Thompson just purchased the following shipments of beans at the prices shown: Type of Beans Shipment Amount in pounds Cost Per Shipment in dollars Arabica 6000 7500 Robusta 7500 7125 Liberica 7500 6750 Excelsa 6000 7200 Juno 7500 7875 The Tameka Mix consists of 15% Arabica, 25% Robusta beans, 25% Liberica, 10% Excelsa, and 25% Juno. The Christian Mix consists of 20% of each type of beans, and the Tamia Mix consists of 25% Arabica, 15% Robusta beans, 15% Liberica, 25% Excelsa, and 20% Juno. Dr. Thompson analyzed the cost to get the beans ready and determined that the profit contribution per pound is $1.65 for the Tameka Mix, $2.00 for the Christian Mix, and $2.25 for the…
A company can produce 100 home computers per day.The setup cost for a production run is $1,000. The cost ofholding a computer in inventory for one year is $300.Customers demand 2,000 home computers per month(assume that 1 month 30 days and 360 days 1 year).What is the optimal production run size? How manyproduction runs must be made each year?
Leather-All produces a line of handmade leather products. At the present time, the company is producing only belts, handbags, and attache cases. The predicted demand for these three types of items over a six-month planning horizon is as follows: The belts require an average of two hours to produce, the handbags three hours, and the attache cases six hours; all the workers have the skill to work on any item. Leather-All has 46 employees who each have a share in the firm and cannot be fired. There are an additional 30 locals that are available and can be hired for short periods at a higher cost. Regular employees earn $8.50 per hour on regular time, and $14.00 per hour on overtime.Regular time comprises a seven-hour workday and the regular employees will work as much overtime as is available. The additional workers are hired for $11.00 per hour and are kept on the payroll for at least one full month. Costs of hiring and firing are negligible. Because of the competitive nature of the…

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