Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthlydemand is given below in the chart. The company will have 650 washers in inventory at the beginning of the month and desires tomaintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of themonth. Below is other critical data:Production cost per unit = $360Inventory carrying cost per month per unit = $50 (based on ending month inventory)Hiring cost per worker = $1,000Firing cost per worker = $2,000Beginning number of workers = 10a Click here for the Excel Data FileEach worker can produce 100 units per month.a. Given the planning information, develop a level production plan and a chase production plan. (Leave no cells blank - be certain toenter "O" wherever required.) Chase Plan - Variable WorkforceRegularProductionEndingInventoryMonthDemandWorkersHireFireRequired2,2004,40033,00044,400Total14,000b. Determine the cost of the two plans.Total cost for level planTotal cost for chase plan

Name: Appliances Inc. is preparing an aggregate production plan for washers
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthlydemand is given below in the chart. The company will have 650 washers in inventory at the beginning of the month and desire

Production plan: Production plan involves planning related to proper allocation of employees,…

Business

Accounting

Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthly demand is given below in the chart. The company will have 650 washers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. Below is other critical data: Production cost per unit = $360 Inventory carrying cost per month per unit $50 (based on ending month inventory) cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Click here for the Excel Data File Each worker can produce 100 units per month.

Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthly demand is given below in the chart. The company will have 650 washers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. Below is other critical data: Production cost per unit = $360 Inventory carrying cost per month per unit $50 (based on ending month inventory) cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Click here for the Excel Data File Each worker can produce 100 units per month.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter11: Linear Optimization Models

Section: Chapter Questions

Problem 13P: The Silver Star Bicycle Company will manufacture both mens and womens models for its Easy-Pedal...

See similar textbooks

Similar questions

The Silver Star Bicycle Company will manufacture both mens and womens models for its Easy-Pedal bicycles during the next two months. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 mens and 125 womens models to be shipped during the first month and 200 mens and 150 womens models to be shipped during the second month. Additional data are as follows: Last month, the company used a total of 1,000 hours of labor. The companys labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months. (Hint: Define variables for production and inventory held in each period for each product. Then use a constraint to define the relationship between these: inventory from end of previous period + produced this period demand this period = inventory at end of this period.) a. Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. What inventories will be maintained and what are the monthly labor requirements? b. If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? How much will the cost increase? What would you recommend?
If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?
One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,600 8,000 8,300 10,600 Each unit requires 0.25 direct labor-hours, and direct laborers are paid $16.00 per hour.
The prôductión manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 8,600 2nd Quarter 6,500 3rd Quarter 7,300 4th Quarter 8, 200 Units to be produced Each unit requires 0.75 direct labor-hours, and direct laborers are paid $12.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Rordan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost ... 田 0 DELL ...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced Each unit requires 0.75 direct labor-hours, and direct laborers are paid $16.00 per hour. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,000 8,000 8,500 10,800 Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Required production in units Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Rordan Corporation Direct Labor Budget 2nd Quarter 8,000 1st Quarter 11,000 8,250✔✔ Answer is not complete. $ 132,000 6,000 3rd Quarter 8,500 6,375 4th Quarter 10,800 S 96,000 $ 102,000 $ 8,100 129,600 Year
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 11, 200 2nd Quarter 8,500 3rd Quarter 8,600 4th Quarter 10,980 Units to be produced Each unit requires 0.55 direct labor-hours, and direct laborers are paid $16.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Rordan Corporation Direct Labor Budget 2nd Quarter 1st Quarter 3rd Quarter 4th Quarter Year
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year. Direct labor time per unit (hours) Tolal direct labor-hours needed Units to be produced 1st Quarter 8,800 Each unit requires 0.55 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Direct labor cost per hour Total direct labor cost 2nd Quarter 7,000 Rordan Corporation Direct Labor Budget 2nd Quarter 1st Quarter 3rd Quarter 4th Quarter 7,400 8,300 3rd Quarter 4th Quarter Year
The Simmons Company finished their sales projections for the coming year. The company produces one product. Part of next year's sales projections are as follows. Projected Sales in Units July 125,000 August 145,000 September 139,000 October 155,000 November 180,000 The budget committee has also completed the following information on inventories. Raw Materials Ending Balance, June, 50,000 lbs Desired ending levels (monthly 10% of next month's production needs) Work-In-Progress None Finished Goods Inventory Ending Balance, June, 22,000 units Desired ending levels: 20% of next month's sales The Engineering Department has developed the following standards upon which the production budgets will be developed. Item Standard Material usage 3 pounds per unit Material price per pound $2.00 per pound Labor usage 0.5 hours per unit Labor rate $40 per hour Machine hours 2 machine hours per unit The Simmons Company uses a modified allocation method for…
The Simmons Company finished their sales projections for the coming year. The company produces one product. Part of next year's sales projections are as follows. Projected Sales in Units July 125,000 August 145,000 September 139,000 October 155,000 November 180,000 The budget committee has also completed the following information on inventories. Raw Materials Ending Balance, June, 50,000 lbs Desired ending levels (monthly 10% of next month's production needs) Work-In-Progress None Finished Goods Inventory Ending Balance, June, 22,000 units Desired ending levels: 20% of next month's sales The Engineering Department has developed the following standards upon which the production budgets will be developed. Item Standard Material usage 3 pounds per unit Material price per pound $2.00 per pound Labor usage 0.5 hours per unit Labor rate $40 per hour Machine hours 2 machine hours per unit The Simmons Company uses a modified allocation method for…
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 9,000 7,000 7,500 8,400 Each unit requires 0.45 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost 1st Quarter Rordan Corporation Direct Labor Budget 2nd Quarter 3rd Quarter 4th Quarter Year
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $67,260 per year Variable costs (supplies): $1.45 per maintenance hour The Assembly and Packaging departments expect to use maintenance hours relatively evenly throughout the year. The Fabricating Department typically uses more maintenance hours in the month of November. Estimated usage in hours for the year and for the peak month is as follows: Yearlyhours MonthlyPeak Hours Assembly Department 5,000 345 Fabricating Department 6,700 1,150 Packaging Department 11,100 805 Total maintenance hours 22,800 2,300 Actual usage for the year by: Assembly Department 3,750 Fabricating Department 6,800 Packaging Department 10,300 Total maintenance hours 20,850 Required: 1. Calculate a variable rate for the Maintenance Department. Round your answer to the…