Concept explainers
The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The
As indicated by the algebraic formulation of the Pigskin model, there is no real need to calculate inventory on hand after production and constrain it to be greater than or equal to demand. An alternative is to calculate ending inventory directly and constrain it to be nonnegative. Modify the current spreadsheet model to do this. (Delete rows 16 and 17, and calculate ending inventory appropriately. Then add an explicit non-negativity constraint on ending inventory.)
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Chapter 3 Solutions
Practical Management Science, Loose-leaf Version
- Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.arrow_forwardB). A company wants to develop a level production plan for a family of products. The opening inventory is 100 units, and an increase to 150 units is expected by the end of the plan. The demand for each period is given in what follows. How much should the company produce each period? What will be the ending inventories in each period? All periods have the same number of working days. Period 1 4 6. Total Forecast Demand | 100 120| 130 140 120 | 110 Planned Production Planned 100 Inventory C). For the following data, calculate the number of workers required for level production and the resulting month-end inventories. Each worker can produce 15 inventory is 9000 units. units per day, and the desired ending Month 1 2 3 4 Total Working Days 20 24 12 19 Forecast Demand 28,000 27,500 28,500 28,500 Planned Production Planned Inventory 11,250arrow_forwardProduct D is stocked only at the AMC Chemical Company's Dallas warehouse and at the company's plant warehouse in Akron. The sales director has forecast product sales from the Dallas warehouse to be 40 units per week for the next 8 weeks. Product D is manufactured at the firm's Akron plant using 2 units of ingredient X per unit of product D. Suppose product D's actual sales at the Dallas warehouse in week 2 were 31 units. Again, all planned shipments/orders were released and expedite actions taken. What action would the master scheduler take on the basis of this information? In this situation, what modifications to the master production schedule might be taken? (4 points) Information: Ingredient X Projected available balance: 4 Units Safety stock quantity: 2 units Product D in Dallas Warehouse Product D in Plant Projected available balance: 85 Units Safety stock quantity: 5 units Lead time: 2 weeks Warehouse Projected available balance: 42 Units Safety stock quantity: 2 units Lead time:…arrow_forward
- Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) January 4,150 February 4,250 March 3,950 April 4,350 May 4,950 June 4,650 July 5,250 August 4,850 September 5,350 October 5,650 November 6,250 December 5,950 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this…arrow_forwardDevelop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. Also, evaluate the cost of the schedule. The monthly forecasts for Product X for January, February, and March are 1,000, 1,500, and 1,200, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 500 units. Manufacturing cost is $200 per unit, storage cost is $3 per unit per month (based on expected end-of-month levels), standard pay rate is $6 per hour, overtime rate is $9 per hour, cost of stock-out is $10 per unit per month, marginal cost of subcontracting is $10 per unit, hiring and training cost is $200 per worker, layoff cost is $300 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 50 workers and that they work 8 hours per day. Note: Leave the cells blank,…arrow_forwardA local manufacturer of toys produces several toys. Among the most popular is Disney-car toy model. Suppose that there are currently 100 Disney-car toys in inventory and that there are customer orders that have been committed and must be filled. Suppose that a production lot size of 150 Disney-car toys. The weekly forecasts for the eight weeks are 176, 172, 50, 130, 40, 120, 132, and 135 respectively. The customer orders for weeks 1. 2, 3 through 8 are the 88, 86, 25, 65, 20, 51, 0, O respectively. Using the standard principles of Master Production Schedule (MPS) along with Available-To-Promise (ATP) for the Disney-car toys, what is the Available to promise (ATP) level in week 2? a. 39 b. None is correct Oc. 79 d. 0 e. 150arrow_forward
- A manufacturing company produces single item product. Theproduction manager decide to arrange 6 periods for MPS. Data aboutdemand forecasts are 112, 157, 126, 176, 124 and 181 while data aboutcustomer orders are 128, 156, 196, 147, 152 and 175. On hand inventoryis 300 units and production batch is 300 units. The productionmanager also decide that 3 beginning periods are critical, so that nochanges are allowed. Arrange MPS for that situation ! When system’s bottleneck requires 10 minutes to finish a unit product,make analysis about capacity. What is your suggestion? please explain it using excel or attached the excel sheetarrow_forwardA local manufacturer of toys produces several toys. Among the most popular is Disney-car toy model. Suppose that there are currently 100 Disney-car toys in inventory and that there are customer orders that have been committed and must be filled. Suppose that a production lot size of 150 Disney-car toys. The weekly forecasts for the eight weeks are 176, 172, 50, 130, 40, 120, 132, and 135 respectively. The customer orders for weeks 1, 2, 3 through 8 are the 88, 86, 25, 65, 20, 51, 0,0 respectively. Using the standard principles of Master Production Schedule (MPS) along with Available-To-Promise (ATP) for the Disney-car toys, how many times production needs to scheduled? O a. None is correct ОЬ 5 О с. 4 O d. Oe. 8arrow_forwardA local manufacturer of toys produces several toys. Among the most popular is Disney-car toy model. Suppose that there are currently 100 Disney-car toys in inventory and that there are customer orders that have been committed and must be filled. Suppose that a production lot size of 150 Disney-car toys. The weekly forecasts for the eight weeks are 176, 172, 50, 130, 40, 120, 132, and 135 respectively. The customer orders for weeks 1, 2, 3 through 8 are the 88, 86, 25, 65, 20, 51,0, 0 respectively. Using the standard principles of Master Production Schedule (MPS) along with Available-To-Promise (ATP) for the Disney-car toys, what is the maximum number of the projected held in inventory in any given week? O a. 132 O b. 52 74 O d. None is correct O e. 100arrow_forward
- Give the logical sequence of steps for formulating and constructing a (structured) LP model.arrow_forwardGrey Manufacturing Company expects sales to total 13,000 units in the first quarter, 12,000 units inthe second quarter, and 15,000 units in the third quarter of the current fiscal year. Company policyis to have on hand at the end of each quarter an amount of inventory equal to 10% of the followingquarter’s sales. Given this information, how many units should be scheduled for production in thesecond quarter?arrow_forwardA company forecasts demand for a component at around 2,500 units a year. They make the component internally, and it costs $500 to set up each production run with a variable cost of $30 a unit. The holding costs are 20 % of value a year and the production rate is 10,000 units a year. There is a lead time of two months from receiving a production requisition until finished units begin to come from the production line. Question: How long is each inventory cycle (in weeks)?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,