• Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a regular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine. ● Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than regular capacity. MONTH 1 2 Forecast 120 135 3 140 4 5 6 120 125 125 7 140 8 135
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- 1. David Villa Manufacturing has the following demand aggregate requirements And other data for the next four periods: Quarter Forecast 1 1400 2 1200 3 1600 4 1500 COSTS/OTHER DATA Previous quarter’s output = 1,300 cases Beginning inventory = 0 cases Stock out cost = $50 per case Inventory holding cost = $10 per case at end of quarter Hiring employees = $40 per case Terminating employees = $80 per case Subcontracting cost = $60 per case Unit cost on regular time = $30 per case Overtime cost = $15 extra per case Capacity on regular time = 1,800 cases per quarter 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 1,350 cases per quarter and meets the forecast demand with inventory and subcontracting. Which strategy is the lowest-cost plan? If you are…Q7. The president of Rose Bowl Enterprises, Desmond Howard, projects the firms aggregate DEMAND requirements over the next 8 months as follows: These are the monthly DEMAND, not production. MONTH JAN FEB MAR APR MAY JUN JULY AUG DEMAND 1,400 1,600 1,800 1,800 2,200 2,200 1,800 1,800 PRODUCTION 1,600 from December INVENTORY 200 from Dec plus 200 His operations manager is considering a new plan, which begins in January with 200 units on hand. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle time costs. The plan is called plan A. Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand was given as 1,600 units per month. Therefore, the production for JAN will be 1,600. However, only 1,400 are needed. Therefore, the extra 200 produced go into inventory and there is a holding cost for inventory. Also, per the above, you already have 200 units in inventory…9. The table below contains monthly (six months) demand estimates and working days per month. Month Demand Production Days JAN FEB MAR APR MAY JUN 1,500 20 1,200 24 1,000 25 1,600 25 1,100 20 1,300 26 For the implementation of "Level" strategy, the average demand (in units/day) over the six- month planning horizon is equal to; а. 40 b. 50 C. 55 d. 75
- 11. Unik hotel has the available capacity of 500 deluxe rooms, and the margin for each room is $100. The Christmas season is coming and the hotel opens booking from customers and must decide on how many orders to commit to at this time. If the hotel has orders that exceed capacity, it must arrange to upgrade the room for guests, which results in a loss of $50 per room. 2. What is the overbooking level should the hotel accept if cancellations are normally distributed, with a mean of 20 per cent of the orders accepted and a coefficient of variation of 0.5? OA) 142 B) 158 O C) 161 OD) 1731. Osprey Machine Works has the following demand requirements and other data for the upcoming four quarters. Quarter 1 2 Previous quarter's output 2500 units Beginning inventory Stockout (backorder) cost $50 per unit Inventory holding cost Hiring workers Laying off workers What is the total cost of pursuing a level aggregate plan over the coming year? Demand 2300 2400 2600 2100 200 units 13 14 $10 per unit at end of quarter $4 per unit $8 per unit 2. Golden Eagle Machine Works has the following demand requirements and other data for th upcoming four quarters. Previous quarter's output 2500 units Beginning inventory Stockout (backorder) cost $50 per unit Inventory holding cost Hiring workers Laying off workers What is the total cost of pursuing a chase aggregate plan over the coming year? Demand 2300 2400 2600 2100 Quarter 1 200 units $10 per unit at end of quarter $4 per unit S8 per unit21. Given the forecast and booked orders shown in the table below, and a beginning inventory of 45, what is the master production schedule quantity for period 4 if you want to end period 4 with 0 inventory? Period 1 2 3 4 Forecasted Demand 70 65 60 55 Booked Orders 80 60 30 50 Projected ending inventory Master production schedule 70 60 65 Available to Promise 0 Group of answer choices 35 30 20 25
- APP Trial and Error -- Level Production Given the following forecasted demands with no capacity limits and no beginning inventory: Quarter Demand 200 900 1 234 Trial and Error is to be used to determine a production plan with a Level Production strategy. How many units will be produced by Regular Production in the 1st quarter? O.200 O 300 400 500 600 800 500 O 700c. Compute and tabulate the daily demand for each month in the table below (round off to the nearest whole number). MONTH PRODUCTION DAYS DEMAND FORECAST DEMAND PER DAY JAN 2022 16 150 ? FEB 2022 16 150 ? MAR 2022 23 250 ? APR 2022 21 250 ? MAY 2022 22 400 ? JUN 2022 22 500 ? JUL 2022 21 600 ? AUG 2022 20 750 ? SEP 2022 20 450 ? OCT 2022 20 250 ? NOV 2022 16 150 ? DEC 2022 16 150 ? TOTAL ? ? d. Assuming that MPQ Limited had adopted a level strategy for the year ended 31 December 2022, compute the average daily demand for the year (round off to the nearest whole number). e. Prepare a graph showing the monthly forecasts and average daily forecast (in units per day) for MPQ Limited.Basil's Framing manufactures picture frames in one workshop, which has a practical capacity of 40,000 frames. The variable cost of a frame is $24 per unit, and the fixed costs of the workshop are $392,000 annually. Current annual demand is 28,000 frames. Basil's Framing bought the current workshop because of forecasts that demand for the frames would grow. Required: a. What cost per frame should the cost system report to facilitate management decision making?
- a) b) c) Month January February March Forecast 120 135 140 April 120 May 125 June 125 July 140 August 135 Regular Output Overtime Output Inventory holding cost Backorder cost Hiring Cost Develop a Level Output Plan and identify the total short units in each period and overall in production cycle Develop Chase Output Plan(s) to address the shortage identified in the Level Output Plan. Recommend the most cost-effective plan Capacity Units per $ per Month Unit 500 130 Unlimited 750 50 250 $ per Worker 3000A Pizza Company has a demand forecast for the next 12 months that is shown in Table 1 The current workforce of 100 staff can produce 1500 cases of pizzas per month. (a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan? (b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10 per cent greater than normal working hours? Table 1 demand forecast Month Demand (cases per month) January 600 February 800 March 1000 April 1500 May 2000 June 1700 July…14.26. Calculate the available-to-promise row in the following matrix: Period On Hand = 100 1 2 3 4 5 6 Forecast 50 100 50 100 50 100 Customer Orders 50 125 75 175 45 15 Master Production 200 200 Schedule Available-to-Promise