QUESTION TWO*Blue Inc. produces a product that has a 6 month demand cycle, as shown below.Each unit requires 10 worker hours to produce, at a labour cost of K6, 000 per hourregular rate or K9, 000 per hour overtime rate. The total cost per unit is estimated atK200, 000 but units can be subcontracted at a cost of K208, 000 per unit. There arecurrently 20 workers employed in the subject department, and hiring and trainingcosts for additional workers are K300,000 per person; whereas layoff costs areK400,000 per person. Company policy is to retain a safety stock equal to 20% of themonthly forecast, and month's safety stock becomes the beginning inventory for thenext month. There are currently 50 units in stock carried at a cost of K2, 000 per unitmonth. Unit shortage, or stockpots, has been assigned a cost of K20, 000 per unitmonth.February March April4001002121168May20022176June30020January300Forecast demand500Work days2219176152168160Work hour at 8 per dayDevelop an aggregate plan, maintaining a workforce of 20, and build inventory orincur stock out cost. The beginning inventory in January is 50.

Aggregate planning is a strategic-level planning process that concerns establishing prevalent…

Answered: * QUESTION TWO Blue Inc. produces a…

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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XYZ Leather Company manufactures and sells two products, wallets and belts, in its two-department plant. Operating data pertaining to the two products are as follows: Wallets Belts Selling price per unit P30 P50 Cost per unit: Variable manufacturing costs P8 P15 Variable marketing costs P2 P3 Fixed manufacturing costs P5 P5 Fixed marketing costs P6 P1 Cutting Finishing…
Tuff-Rider, Inc., manufactures touring bikes and mountainbikes in a variety of frame sizes, colors, and component com-binations. Identical bicycles are produced in lots of 100. Theprojected demand, lot size, and time standards are shown inthe following table: Item Touring MountainDemand forecast 5,000 units/year 10,000 units/yearLot size 100 units 100 unitsStandard processing time .25 hour/unit .50 hour/unitStandard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours a day, 5 days a week,50 weeks a year. It operates five workstations, each producingone bicycle in the time shown in the table. The shop main-tains a 15 percent capacity cushion. How many workstationswill be required next year to meet expected demand withoutusing overtime and without decreasing the firm’s currentcapacity cushion?
2.17 For the following data, calculate the number of workers required for level production and the resulting month-end inventories. Each worker can produce 14 units per day, and the desired ending inventory is 9000 units. Month Working Days Forecast Demand Planned Production Planned Inventory 11,500 1 2 3 4 Total 20 24 12 19 28,000 27,500 28,500 28,500
← Makayla Metbers Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data Variable Costs (per unit) (5) Material Annualized Fixed Cost of Plant & Equipment $1,200,000 $1,000,000 $1,025,000 18 26 $1,900,000 Process Type Mass Customization Intermittent Repetitive Continuous Makayla Metters Cabinets projects an annual demand of 24,000 units for the Maxistand. The selling price for the Maxistand is $120per unit. a) Based on the projected annual demand, the best alternative available is to use the process b) The value of annual profit using this method is $ (Enter your response as an integer) Labor 30 24 20 25 15 15 Energy 12 20 12 10
GOT7 company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% with less material, but one additional worker required. Under the old process, five workers could produce 60 units per hour. Labor costs are RM12/hour, and material input was previously RM16/unit. For the new process, material is now RM10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for RM31each. What increase in productivity is associated with the process improvement?
15. The Goodparts Company produces a component that is subsequently used in the aero- space industry. The component consists of three parts (A, B, and C) that are purchased from outside and cost 40, 35, and 15 cents per piece, respectively. Parts A and B are assembled first on assembly line 1, which produces 140 components per hour. Part C un- dergoes a drilling operation before being finally assembled with the output from assem- bly line 1. There are in total six drilling machines, but at present only three of them are operational. Each drilling machine drills part C at a rate of 50 parts per hour. In the final assembly, the output from assembly line 1 is assembled with the drilled part C. The final assembly line produces at a rate of 160 components per hour. At present, components are produced eight hours a day and five days a week. Management believes that if need arises, it can add a second shift of eight hours for the assembly lines. The cost of assembly labor is 30 cents per part…
9. The Ace Manufacturing Company has orders for three similar products: Orders Product (units) A 2000 500 1200 B C Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect per- centages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are as follows: Сараcity (units) Product Machine Machine A в C 1500 $1.00 $1.30 $1.10 $1.20 $1.40 $1.00 $0.90 $1.20 $1.20 1 1500 1000 3 Use the transportation model to develop the minimum cost production schedule for the products and machines. Show the linear programming formulation. 123
CarCity is a big retailer for car parts and accessories. The store stocks different types and sizes of car tire. One of the best selling tires is the Tiger Model R125, which is currently purchased from a factory in Indonesia. An analysis of the purchasing operation shows that approximately 3 labor hours are required to process a purchase order, regardless of the quantity purchased. Salaries in the purchasing Department average OMR 12 per hour, including employee benefits. In addition, a detailed analysis of 15 previous purchase orders showed that OMR 132 was spent on telephone, paper, and other consumables directly related to the ordering process . Shipping cost from Indonesia is OMR 230 for a container. A container has a capacity of 800 tires. The lead time for shipments from Indonesia is 15 days. Finally, CarCity’s financial analysts established a holding cost of 20% for this type of tire. The annual demand for the R125 tire is constant at a rate of 8400 units. The store purchases…
The Chineke Group of Company manufactures two products, namely product B and product P, and provides you with the following information: Prod. B Prod. P Selling price per unit 80.00 50.00 Less cost of sales: Direct material A @ R5.00 per kg 15.00 10.00 Direct material B @ R4.00 per kg 8.00 12.00 Direct labour @ R6.00 per hour 12.00 6.00 Variable manufacturing overhead @ R5.00 per labour hour 10.00 5.00 Fixed manufacturing overhead per unit 5.00 5.00 Gross profit 30.00 12.00 Less sales & administrative costs: Variable 6.00 4.00 Fixed 10.00 5.00 Net profit per unit 14.00 3.00 Take note of the following constraints: Material A available 360 kg Material B available 360 kg Labour hours available…
If 10 pallets are received each 8-hour day, what is the average number of pallets in the system on any given day? Stocking 9 persons 1. 5 hpp S/R Cycle Count person 0.5 hrs/pallet (hpp) Pricing 2 persons 1.25 hpp 1 person 0.25 hpp Spotting 1 persons 0.2 hpp O 10 pallets O 4.713 pallets O 4.375 pallets O125 pallets O Impossible to determine
Old Pueblo Engineering Contractors creates six-month “rolling” schedules, which are recomputed monthly. For competitive reasons (it would need to divulge proprietary design criteria, methods, and so on), Old Pueblo does not subcontract. Therefore, its only options to meet customer requirements are (1) work on regular time; (2) work on overtime, which is limited to 30 percent of regular time; (3) do customers’ work early, which would costan additional $5 per hour per month; and (4) perform customers’ work late, which would cost an additional $10 per hour per month penalty, as provided by their contract. Old Pueblo has 25 engineers on its staff at an hourly rate of $30. The overtime rate is $45. Customers’ hourly requirements for the six months from January to June are January 5000 February 4000 March 6000 April 6000 May 5000 June 4000 Develop an aggregate plan using a spreadsheet. Assume 20 working days in each month. 12. Alan Industries is expanding its product line to include three…
CarCity is a big retailer for car parts and accessories. The store stocks different types and sizes of car tire. One of the best selling tires is the Tiger Model R125, which is currently purchased from a factory in Indonesia. An analysis of the purchasing operation shows that approximately 2 labor hours are required to process a purchase order, regardless of the quantity purchased. Salaries in the purchasing Department average OMR 15 per hour, including employee benefits. In addition, a detailed analysis of 20 previous purchase orders showed that OMR 132 was spent on telephone, paper, and other consumables directly related to the ordering process (see guidelines above to obtain value of 132). Shipping cost from Indonesia is OMR 250 for a container. A container has a capacity of 800 tires. The lead time for shipments from Indonesia is 15 days. Finally, CarCity’s financial analysts established a holding cost of 30% for this type of tire. The annual demand for the R125 tire is constant at…

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