Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six months using the following information. Demand Capacity Regular Overtime 1 160 Regular time Overtime 150 10 Cost Per Unit Subcontract Inventory holding, per month 2 150 150 10 $50 75 80 4 Click here for the Excel Data File MONTH 3 160 150 0 4 180 150 10 5 170 160 10 6 140 160 10 Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No pack orders are allowed. Regular capacity = Regular production. (Negative amounts should be indicated by a minus sign. Leave no

Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six months using the following information. Demand Capacity Regular Overtime 1 160 Regular time Overtime 150 10 Cost Per Unit Subcontract Inventory holding, per month 2 150 150 10 $50 75 80 4 Click here for the Excel Data File MONTH 3 160 150 0 4 180 150 10 5 170 160 10 6 140 160 10 Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No pack orders are allowed. Regular capacity = Regular production. (Negative amounts should be indicated by a minus sign. Leave no

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Planners for a company that makes several models of skateboards are about to prepare the aggregate plan that will cover six periods. They have assembled the following information. Period 1 2 3 4 5 6 Total Forecast 200 200 300 400 500 200 1,800 Costs Output Regular time=$2 per skateboard Overtime =$3 per skateboard Subcontract =$6 per skateboard Inventory =$1 per skateboard per period on average inventory Back orders =$5 per skateboard per period They now want to evaluate a plan that calls for a steady rate of regular-time output, mainly using inventory to absorb the uneven demand but allowing some backlog. Prepare an aggregate plan and determine its cost using the preceding information.
Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and backorders. The plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 160 units per month. There are 10 units backlogged from before. Overtime cost is $30 per unit, backorder cost is $20 per unit, inventory holding cost is $5 per unit, regular time cost of $20 per unit, and beginning inventory is zero. Month Forecast 1 180 2 170 3 140 4 150 5 130 6 150 a. Prepare an aggregate plan with inventory and backlog allowed. Overtime and subcontracting are not allowed.b. Prepare an aggregate plan if the management decided to switch to…
Prepare a Master Production Schedule (MPS) for an Agri-Chemical company in Malawi given the following information: The forecast for each week of an eight-week schedule is 50 units. The MPS rule is to schedule production if the projected on-hand inventory would be negative without it. Customer orders (committed) are as follows:Week Customer Orders1 522 353 204 12Use a production lot size of 75 units and no beginning inventory.
A manager is attempting to put together an aggregate production plan for the coming nine months. She has obtained forecasts of aggregate demand for the planning horizon. The plan must deal with highly seasonal demand; demand is relatively high in months 3 and 4, and again in month 8, as can be seen below: The company has 20 permanent employees, each of whom can produce 10 units of output per month at a cost of $6 per unit. Inventory holding cost is $5 per unit per month, and back-order cost is $10 per unit per month. The manager is considering a plan that would involve hiring two people to start working in month 1, one on a temporary basis who would work until the end of month 5. The hiring of these two would cost $500. Beginning inventory is 0.Start with 20 permanent workers. Prepare a minimum cost plan that may use some combination of hiring ($250 per worker), subcontracting ($8 per unit, maximum of 20 units per month, must use for at least three consecutive months), and overtime…
WAI uses two resources for each product that it builds: directlabor and machine time. From historical records, WAI calculatesthe following planning factors:Direct labor for standard corkscrew is 0.20 hour.Direct labor for deluxe corkscrew is 0.50 hour.Machine time for standard corkscrew is 0.10 hour.Machine time for deluxe corkscrew is 0.30 hour.Calculate the capacity needed for the MPS developed in Problem 4
Carlos Cavalas, the manager of Echo Products’ Brazilian Division, is trying to set the production schedule for the last quarter of the year. The Brazilian Division had planned to sell 70,070 units during the year, but by September 30 only the following activity had been reported: Units Inventory, January 1 0 Production 71,100 Sales 63,700 Inventory, September 30 7,400 The division can rent warehouse space to store up to 30,500 units. The minimum inventory level that the division should carry is 2,800 units. Mr. Cavalas is aware that production must be at least 4,440 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is 44,200 units per quarter. Demand has been soft, and the sales forecast for the last quarter is only 19,500 units. Due to the nature of the division’s operations, fixed manufacturing overhead is a major element of product cost. Required: 1a. Assume that the division is using variable costing. How many…
How is it possible for you to solve the Aggregate Planning problem?
Every firm has multiple objectives such as good labor relations, low operating costs, high inventory turnover, and good customer service. What are the pros and cons of treating these objectives separately in an aggregate planning problem versus combining them all into a single measure of cost?
Aggregate planning deals with a number of constraints.These typically are:a) job assignments, job ordering, dispatching, and overtime help.b) part-time help, weekly scheduling, and SKU production scheduling.c) subcontracting, employment levels, inventory levels,and capacity.d) capital investment, expansion or contracting capacity,and R&D.e) facility location, production budgeting, overtime, andR&D.
Prepare a Master Production Schedule (MPS) for an Agri-Chemical company given the following information: The forecast for each week of an eightweek schedule is 50 units. The MPS rule is to schedule production if the projected on-hand inventory would be negative without it. Customer orders (committed) are as follows:Week Customer Orders1 522 353 204 12Use a production lot size of 75 units and no beginning inventory.
A. When the required labor skill is high, it is generally best to pursue which aggregate planning strategy? a. Hybrid - combination of level and chase b. Chase c. Level d. Low job discretion B. If labor turnover is high, it is generally best to pursue which aggregate planning strategy? a. Chase b. Low job discretion c. Hybrid - combination of level and chase d. Level
Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. the four-quarter forecast. Quarter Forecast 1 1,400 2 1,100 3 1,700 4 1,300 aggregate plan. Costs Previous quarter's output 1,600 units Beginning inventory 0 units Stockout cost for backorders $55 per unit Inventory holding cost $11 per unit for every unit held at the end of the quarter Hiring workers $50 per unit Layoff workers $75 per unit Unit cost $35 per unit Overtime $20 extra per unit Subcontracting Not available Your job is to develop an aggregate plan for the next four quarters. Part 2 a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole…