What are the advantages and disadvantages of varyingthe size of the workforce to meet demand requirementseach period?
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- 10. Mention and describe what each of the 4 types of approaches to demand analysis discussed in class consists of.what is the strategy means vary production rates to meet changes in demand, it is often used when inventory cannot be used or when resources are flexible and inexpensive to changeHow does revenue management impact an aggregateplan?
- Suppose XYZ Company has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Other Data 1 1300 Previous quarter’s output 1500 Units 2 1400 Beginning Inventory 200 units 3 1500 Stock out cost 50$ per unit 4 1300 Inventory holding cost 10 $ per unit Hiring Workers 4$ per unit Firing workers 8$ per unit Unit Cost 30$ per unit Overtime 40 $ per unit Question: Which of the following production plans is better: –Plan A—chase demand by hiring and firing –Plan B—produce at a constant rate of 1200 and obtain the remainder from overtime?Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct materials per unitproduced. Assume that it is currently at the end of the first quarter of the year, and there are 50,000pounds of material on hand. The company’s policy is to maintain an end-of-quarter inventoryof materials equal to 25 percent of the following quarter’s material requirements for production.How many units of product were produced in the first quarter of the year? Under the assumptionthat production will increase by 10 percent in the second quarter, what are the direct materialsrequirements (in pounds) for planned production in the second quarter?Q2) Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 1500 units 1 1400 Beginning inventory 200 units 2 1000 Stockout cost $50 per unit 3 1500 Inventory holding cost $8 per unit at end of quarter 4 1300 Hiring workers $5 per unit Laying off workers $10 per unit Unit cost $30 per unit Overtime $10 extra per unit Which of the following production plans is better: Plan A—chase demand by hiring and layoffs; or Plan B—produce at a constant rate of 1200 and obtain the remainder from overtime? Finish the calculation. image
- Zan Azlett and Angela Zesiger have joined forcesto start A&Z Lettuce Products, a processor of packaged shreddedlettuce for institutional use. Zan has years of food processingexperience,and Angela has extensive commercial food preparationexperience. The process will consist of opening crates of lettuceand then sorting, washing, slicing, preserving, and finallypackagingthe prepared lettuce. Together, with help from vendors,theythink they can adequately estimate demand, fixed costs, revenues,and variable cost per 5-pound bag of lettuce. They think alargelythe manual process will have monthly fixed costs of $37,500andvariable costs of $1.75 per bag. A more mechanized process will have fixed costs of $75,000 per month with variable costs of$1.25 per 5-pound bag. They expect to sell the shredded lettucefor $2.50 per 5-pound bag.d) What is the revenue at the break-even quantity for the mechanizedprocess? e) What is the monthly profit or loss of the manual process if theyexpect to sell…1. The Kintampo Tourist Resort (KTR) is one of Ghana’s best holiday centers and sells a special type of souvenir called Expensive. As you might expect, the demand for Expensive is highly seasonal as tourist centers exhibit a highly seasonal attraction pattern, with peaks during the summer months. The following forecasts are available for Expensive.Inventory carrying cost = GH¢3 per piece per quarter Production per employee = 1000 piece per quarter Regular workforce = 50 workersCost of regular production = GH¢50 per piece Hiring cost per employee = GH¢75Firing cost per employee = GH¢100 The management of KTR does not wish to use Level production nor Chase Demand but wants to adopt one of the following strategies:Strategy I: Produce 71,000 pieces in Quarter 1, Produce 151,000pieces in Quarter 2, Produce 200,000 pieces in Quarter 3,and Produce 30,000 pieces in Quarter 4.Strategy II: Produce 51,000 pieces in Quarter 1, Produce 161,000pieces in Quarter 2, Produce 210,000 pieces in Quarter…Zan Azlett and Angela Zesiger have joined forcesto start A&Z Lettuce Products, a processor of packaged shreddedlettuce for institutional use. Zan has years offood-processingexperience,and Angela has extensive commercial food-preparationexperience. The process will consist of opening crates of lettuceand then sorting, washing, slicing, preserving, and finally packagingthe prepared lettuce. Together, with help from vendors, theythink they can adequately estimate demand, fixed costs, revenues,and variable cost per 5-pound bag of lettuce. They think a largelymanual process will have monthly fixed costs of $37,500 and variablecosts of$1.75 per bag. A more mechanized process will havefixed costs of $75,000 per month with variable costs of $1.25 per5-pound bag. They expect to sell the shredded lettuce for $2.50per 5-pound bag.a) What is the break-even quantity for the manual process?b) What is the revenue at the break-even quantity for the manualprocess?c) What is the break-even quantity…
- Chapter 13 Homework Kansas Furniture has received the following demand requirements: Month Demand July 1,000 August 1,200 September 1,400 October 1,800 November 1,800 December 1,600 Stockout costs are $100 per unit Inventory costs are $25 per unit per month No inventory left over from June for plans A, B, and D. Plan A: Produce at a steady rate equal to minimum requirements and subcontract the rest at $60 per unit. Store additional units in inventory. What is the total cost? Plan B: Vary the workforce. June’s production was 1,300 units. The cost of hiring is $3,000 per 100 units. The cost of layoffs is $6,000 per 100 units. What is the total cost? Plan C: Keep the current workforce steady at a level producing 1,300 units per month. Subcontract the remainder to meet demand at $60 per unit. Assume 300 units in inventory available at end of June and usable in July. What is the total cost? Plan D: Keep the…What is chase demand plan?Activity # 4 Preparation of Statement of Comprehensive Income1. Compute for the Cost of Goods Sold using the following: • Sales – 15,000 • Purchases – 2,000 • Purchase returns – 200 • Purchase discounts – 200 • Freight in – 100 • Beginning inventory – 1,000 • Ending inventory – 500