What is the level total Production Rate? Answer units(b) What is the maximum quantity subcontracted and in which period? Quantity-Answer and Period-Answer(c) What is the maximum quantity backlogged and in which period? Quantity-Answer and Period-Answer(d) What is the total regular production cost? $Answer(e) What is the total overtime cost? $Answer(f) What is the total subcontracting cost? $Answer(g) What is the total inventory carrying cost? $Answer(h) What is the total backorder cost? $Answer(i) What is the total aggregate plan cost? $Answer The production manager at Zam Tech has developed following aggregate forecast of its products:PeriodForecast35555024675044605140The manager has also assembled the following information to help in the development of the aggregate plans:Regular production cost$80.00/unitOvertime production cost$120.00/unitSubcontracting cost$140.00/unitHolding cost$10.00/unit/monthBackorder cost$20.00/unitRegular capacity40 units/monthOvertime capacity8 units/monthSubcontracting capacity12 units per monthThe manager wants to use a level strategy with a combination of backlogs, subcontracting, overtime and inventory tohandle variations in demand. There is no beginning inventory and the safety stock requirement is zero. Note thatthere should not be a backlog in the final period. Note that no decimal points, commas or spaces in all the answers.

For a level plan the production level is kept constant. Here, since the cost of reuglar production…

What is the level total Production Rate? Answer units (b) What is the maximum quantity subcontracted and in which period? Quantity-Answer and Period-Answer (c) What is the maximum quantity backlogged and in which period? Quantity-Answer and Period-Answer (d) What is the total regular production cost? $Answer (e) What is the total overtime cost? $Answer (f) What is the total subcontracting cost? $Answer (g) What is the total inventory carrying cost? $Answer (h) What is the total backorder cost? $Answer (i) What is the total aggregate plan cost? $Answer

What is the level total Production Rate? Answer units (b) What is the maximum quantity subcontracted and in which period? Quantity-Answer and Period-Answer (c) What is the maximum quantity backlogged and in which period? Quantity-Answer and Period-Answer (d) What is the total regular production cost? $Answer (e) What is the total overtime cost? $Answer (f) What is the total subcontracting cost? $Answer (g) What is the total inventory carrying cost? $Answer (h) What is the total backorder cost? $Answer (i) What is the total aggregate plan cost? $Answer

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

See similar textbooks

Similar questions

Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Deb Bishop Health and Beauty Products has developeda new shampoo, and you need to develop its aggregate schedule.The cost accounting department bas supplied you the costsrelevant to the aggregate plan, and the marketing department hasprovided a four-quarter forecast. All are shown as follows: 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 Healthand Beauty Products?
The production manager at Zam Tech has developed following aggregate forecast of its products: The manager has also assembled the following information to help in the development of the aggregate plans: The manager wants to use a level strategy with a combination of backlogs, subcontracting, overtime and inventory to handle variations in demand. There is no beginning inventory and the safety stock requirement is zero. Note that there should not be a backlog in the final period. Note that no decimal points, commas or spaces in all the answers. (a) What is the level total Production Rate? Answer units (b) What is the maximum quantity subcontracted and in which period? Quantity-Answer and Period-Answer (c) What is the maximum quantity backlogged and in which period? Quantity-Answer and Period-Answer (d) What is the total regular production cost? $Answer (e) What is the total overtime cost? $Answer (f) What is the total subcontracting cost? $Answer (g) What is the total…
Eight Glasses A Day: The EGAD Bottling Company has decided to introduce a new line of premium bottled water that will include several designer flavors. Marketing manager Georgianna is predicting an upturn in demand based on the new offerings and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months, as shown, Month May June July Aug Sep Oct Total Forecast 50 60 70 90 80 70 420 Production manager Mark Mercer, has developed the following information. (Note: Costs are in thousands of dollars). Regular production cost: $1 per tankload Regular production capacity: 60 tankloads Overtime production cost: $1.6 per tankload Subcontracting cost: $1.8 per tankload Holding cost: $2 per tankload per month Back ordering cost: $5 per month per tankload Beginning inventory: 0 units Among the strategies being considered are: 1. Level production supplemented by up to 10 tank loads a month from overtime 2. A…
The forecast demand for a company for Jan. to June is given in the table below. It is known that the starting inventory in Jan. is 0 unit and it is required that 0 units be left at the end of June. It is known that the company had 40 workers last December. It is also known that these 40 workers produced 400 units last December that had 20 working days. Cost information is given below. (i) Wage: $120 per day per worker; Cost of hiring: $500 per worker; Cost of layoff: $1000 per worker (ii) Holding cost: $2 per unit; Shortage cost: $3 per unit The manager of this company wants to develop a staffing plan that minimizes total cost. He wants to use the constant strategy for January through June. (a) Calculate the average number of units produced per worker per day (K). (b) Complete the following table. (c) Show the following costs of this workforce plan. Wages: Inventory holding cost: Inventory shortage cost:
A forecast of 240 units in January, 320 units in February, and 240 units in March has been approved for the seismic-sensory product family manufactured at the Rockport facility of Maryland Automated, Inc. Three products, A, B, and C, comprise this family. The product mix ratio for products A, B, and C for the past 2 years has been 35 percent, 40 percent,and 25 percent, respectively. Management believes that the monthly forecast requirements are evenly spread over the 4 weeks of each month. Currently, 10 units of product C are on hand. The company produces product C in lots of 40, and the lead time is 2 weeks. A production quantity of 40 units from the previous period is scheduled to arrive in week 1. Thecompany has accepted orders of 25, 12, 8, 10, 2, and 3 units of product C in weeks 1 through 6, respectively. Prepare a prospective MPS for product C and calculate the availableto-promise inventory quantities.
City Sod is a small business that sells and lays sod (rolled strips of grass). The owner has devised a forecasting procedure based on demand history from previous years plus projection of demand in recent weeks. The forecast for the next six weeks, in labor hours of sod laying, is 850 870 950 910 970 870 CmTently, City Sod has a staff of sod layers consisting of five crew chiefs and 15 laborers. A crew chief lays sod along with the laborers, but also directs the crew. The owner has decided on the following staffing policies: A two-week backlog will be accmnulated before adding staff. Plans are based on a 40 hour work week; overtime is used only to absorb weather or other delays and employee absence or resignations. The ideal crew size is one crew chief and four laborers. Devise a hiring plan for the first three weeks. In your answer, assmne a current backlog of 1,480 labor hours of sod-laying orders. Does City Sod follow a chase-demand or level-capacity strategy of…
The options Outlook has for handling the seasonality of magazine are adding workers during the peak season, subcontracting out some of the work, building up inventory during the slow months, or building up a backlog of orders that will be delivered late to customers. To determine how to best use these options through an aggregate plan, Outlook`s vice president of Marketing starts with the first task-building a demand forecast. Although Outlook could attempt to forecast this demand itself, a much more accurate forecast comes from a collaborative process used by both Outlook and its retailers to produce the forecast shown in Table (a). Outlook sells each book through retailers for Rs.40. The company has a starting inventory in January of 1000 books. At the beginning of January the company has a workforce of 80 employees. The company has a total of 20 working days in each month, and each employee earns Rs 4 per hour regular time. Each employee works eight hours per day on straight time…
The options Outlook has for handling the seasonality of magazine are adding workers during the peak season, subcontracting out some of the work, building up inventory during the slow months, or building up a backlog of orders that will be delivered late to customers. To determine how to best use these options through an aggregate plan, Outlook`s vice president of Marketing starts with the first task-building a demand forecast. Although Outlook could attempt to forecast this demand itself, a much more accurate forecast comes from a collaborative process used by both Outlook and its retailers to produce the forecast shown in Table (a). Outlook sells each book through retailers for Rs.40. The company has a starting inventory in January of 1000 books. At the beginning of January the company has a workforce of 80 employees. The company has a total of 20 working days in each month, and each employee earns Rs 4 per hour regular time. Each employee works eight hours per day on straight time…
Product A is an assemble-to-order product. It has a lot size of 150, and currentlyhas an on-hand inventory of 110 units. There is a 2-week demand time fence and a12-week planning time fence. The following table gives the original forecast and theactual customer orders for the next 12 weeks:Week 1 2 3 4 5 6 7 8 9 10 11 12Forecast 80 80 80 70 70 70 70 70 70 70 70 70Demand 83 78 65 61 49 51 34 17 11 7 0 0a. Given this information, develop a realistic master schedule, complete with ATPlogic.b. Tell how you would respond to each of the following customer order requests.Assume these are independent requests, and do not have cumulative effects.■ 20 units in week 3■ 40 units in week 5■ 120 units in week 7
Forecast Data is given within problem. Cost Data is attached Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: LOADING... Click the icon to view the demand forecast. LOADING... Click the icon to view the cost data. John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: • Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. • Plan B: a level strategy. • Plan C: a level strategy that produces 1,000 cases per quarter and meets the forecast demand with inventory and subcontracting. Part 2 a) Which strategy is the lowest-cost plan? Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Quarter Forecast Production Hire (Units) Layoff (Units)…