The total cost, excluding normal time labor costs, for Plan A = $. (Enter your response as a whole number.)Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiringadditional workers is $30 per unit produced. The cost of layoffs is $65 per unit cut back. (Enter all responses as wholenumbers.)Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to1000 in August requires a layoff (and related costs) of 300 units in August).Month123 September4 OctoberJulyAugust5 November6 DecemberDemand100012001400180018001800HireProduction (Units)The total hiring cost = $The total layoff cost = $The total inventory carryingThe total stockout cost = $The total cost, excluding normal time labor costs, for Plan B =(Enter your response as a whole number.)(Enter your response as a whole number.)cost = $(Enter your response as a whole number.)Layoff(Units)▬▬▬▬▬(Enter your response as a whole number.)EndingInventory|||||Stockouts(Units)(Enter your response as a whole number.) KThe S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shownin the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $25 per unit permonth, and zero beginning and ending inventory, evaluate these two plans on an incremental cost basis:Plan A: Produce at a steady rate (equal to minimum requirements) of 1,000 units per month and subcontract additionalunits at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses aswhole numbers).1July2August3 September4 October5 November6 DecemberMonthILMonthDemand100012001400180018001800Demand4000EndingProduction Inventory1,00001,0001,0001,0001,0001,000OOO00000The total cost, excluding normal time labor costs, for Plan A = $. (Enter your response as a whole number.)Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiringadditional workers is $30 per unit produced. The cost of layoffs is $65 per unit cut back. (Enter all responses as wholenumbers.)Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to1000 in August requires a layoff (and related costs) of 300 units in August).DSubcontract(Units)HireLayoffProduction (Units) (Units)EndingInventoryStockouts(Units)M

Find the Calculation methods below: Output forecast = (Production - Demand) + Subcontract…

Answered: The total cost, excluding normal time…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

See similar textbooks

Similar questions

A 2011 study published in the Harvard Business reported an average cost overrun of ... Select one: a. 70% b. 27% c. 15% d. 88% On of them is not consider tool or techniques to assist in schedule development: Select one: a. PERT b. Critical chain scheduling c. Gant chart d. MTA matrix tractability array cost is “ a resource sacrificed or foregone to achieve a specific objective Select one: True False Intangible costs or benefits are ...... Select one: a. easy to measure in monetary terms such as gold b. difficult to measure in monetary terms c. easy to measure in monetary terms such as dollar d. easy to measure in term of time plan
Jill wants you to consider a hybrid aggregate plan, usingup to the maximum overtime per employee for any periodwhere demand cannot be satisfi ed with the current regular-timeproduction and the available inventory. Back orders can occur.(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
Sales and Operations Planning is a process of balancing resources and forecasted demand. A) True B) False
Plan production for the next year. The demand forecast is: spring, 20,000; summer, 10,000; fall, 15,000; winter, 18,000. At the beginning of spring, you have 70 workers and 1,000 units in inventory. The union contract specifies that you may lay off workers only once a year, at the beginning of summer. Also, you may hire new workers only at the end of summer to begin regular work in the fall. The number of workers laid off at the beginning of summer and the number hired at the start of fall should result in planned production levels for summer and fall that equal the demand forecasts for summer and fall, respectively. If demand exceeds supply, use overtime in spring only, which means that backorders could occur in winter. You are given these costs: hiring, $100 per new worker; layoff, $200 per worker laid off; holding, $20 per unit-quarter; backorder cost, $8 per unit; straight-timelabor, $10 per hour; over time, $15 per hour. Productivity is 0.5 units per worker hour, eight hours per…
evelop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 9,700; winter, 8,000; spring, 7,000; summer, 11,700. Inventory at the beginning of fall is 485 units. At the beginning of fall you currently have 35 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $80 for each temp; layoff, $160 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quarter, produce to the full output of your regular workforce, even if that…
At the point when a fixed resource is purchased as recruit buy, interest component is arranged under ______ what's more, credit component is ordered under________. a) Operating exercises, financing exercises b) Financing exercises, contributing exercises c) Investing exercises, working exercises d) None of the abovementioned
A local firm manufactures children’s toys. The projected demand over the next four months for one particular model of toy robot is (given) Assume that a normal workday is eight hours. Hiring costs are $350 per worker and firing costs (including severance pay) are $850 per worker. Holding costs are $4.00 per aggregate unit held per month. Assume that it requires an average of 1 hour and 40 minutes for one worker to assemble one toy. Shortages are not permitted. Assume that the ending inventory for June was 600 of these toys and the manager wishes to have at least 800 units on hand at the end of October. Assume that the current workforce level is 35 workers. Find the optimal plan by formulating as a linear program.
The table below provides the aggregate plan of production by a firm. It is known that the firm uses a chase plan. The firm’s labor cost is $10/unit, hiring cost is $200 per unit of increase, and unit firing cost is $400 per unit of decrease in production. Given this information, what is the number in the cell with the question mark?
Hill is now considering plan C: Keep a stable workforceby maintaining a constant production ra te equal to the averagerequirements and allow varying in ventory levels. Beginning inventory,stockout costs, and holding costs are provided.Plot the demand with a graph that also shows average requirements.Conduct your analysis for January through August.
hey i have completed qustion A but was wondering if i could get help with the rest of the qustions. the qustions are below this. thank you. A company that produces cleaning products is considering a proposal to begin production of a new detergent thatwould cost $1 a bottle to make and distribute, and retail for $2.19 a bottle. Fixed cost for the operation would be$3000 a week. Assume that all output can be sold.(a) What would be the total cost, revenue and profit for a weeklyvolume of 10,000 bottles?(b) What is the break-even volume?(c) Set the problem in Excel, and use Goal Seek to confirm youranswer in parts (a) and (b).(d) Suppose the company has a goal to make a weekly profit thatis at least 25% of the revenue. What level of output satisfiesthis goal? Use the Excel Goal Seek to answer this question, andsubmit your printout.(e) Suppose the weekly demand for the new product is 3,500bottles, that is, the company could only make and sell 3,500bottles each week. Given the same fixed…
Please answer all subparts questions. Thank you Schedule D: Suppose the regular rate of production is 700 units per period. Further, you are allowed to produce 100 units during each of the periods 3,4, and 5 on an overtime basis, but the subcontractor has gone out of business. You can hire two temporary workers during the periods 3, 4, and 5. Each worker can produce 50 units per period at the regular cost. But it costs $200 to train a worker and check the quality of the product during each of the three periods. (23) The back-order cost for the fifth period is: (a) $200 (b) $400 (c) $500 (d) $1000 (e) none of the above (24) The total cost of meeting the demand is: (a) $17,700 (b) $18,900 (c) $18,300 (d) $17,200 (e) none of the above (25) Which of the following options would help the manager in minimizing the total costs? (a) Regular time production only (b) Combination of regular and overtime production (c) Combination of regular and overtime production, and subcontracting (d)…
Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 11,000; winter, 8,000; spring, 6,000; summer, 13,000. Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $100 for each temp; layoff $200 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. a. What is the total cost for this plan?

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

SEE MORE TEXTBOOKS