Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 16,400 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,700 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,800 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July August Budgeted Sales in Units 120,000 Required: 1. Prepare a production budget for the All Weather for April, May, June and July. Budgeted sales (units) Total needs 160,000 207,000 116,000 59,100 Required production April May June July

Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 16,400 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,700 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,800 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July August Budgeted Sales in Units 120,000 Required: 1. Prepare a production budget for the All Weather for April, May, June and July. Budgeted sales (units) Total needs 160,000 207,000 116,000 59,100 Required production April May June July

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...

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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.
Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April. and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.
Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?
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?
Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 15,000 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,500 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,800 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July…
Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 16,300 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,000 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,500 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July…
Dolly Plastics Corporation manufactures and sells plastic casings. Expected casing sales (in units for the upcoming months are as follows: July August September October Expected sales 10,000 12,000 8,000 14,000 Five ounces of plastic resin are needed to produce every case. Dolly likes to have enough plastic resin on hand at the end of the month to cover 20% of the next month’s production requirements. Dolly also likes to maintain a finished goods inventory equal to 10% if the next month’s estimated sales. How many units of plastic resin must be issued to production for the quarter ended September?
Dolly Plastics Corporation manufactures and sells plastic casings. Expected casing sales (in units for the upcoming months are as follows: July August September October Expected sales 10,000 12,000 8,000 14,000 Five ounces of plastic resin are needed to produce every case. Dolly likes to have enough plastic resin on hand at the end of the month to cover 20% of the next month’s production requirements. Dolly also likes to maintain a finished goods inventory equal to 10% if the next month’s estimated sales. How many units are required for production for the quarter ended September?
Dolly Plastics Corporation manufactures and sells plastic casings. Expected casing sales (in units for the upcoming months are as follows: July August September October Expected sales 10,000 12,000 8,000 14,000 Five ounces of plastic resin are needed to produce every case. Dolly likes to have enough plastic resin on hand at the end of the month to cover 20% of the next month’s production requirements. Dolly also likes to maintain a finished goods inventory equal to 10% if the next month’s estimated sales. What is the ending inventory of the finished goods on September?
Dolly Plastics Corporation manufactures and sells plastic casings. Expected casing sales (in units for the upcoming months are as follows: July August September October Expected sales 10,000 12,000 8,000 14,000 Five ounces of plastic resin are needed to produce every case. Dolly likes to have enough plastic resin on hand at the end of the month to cover 20% of the next month’s production requirements. Dolly also likes to maintain a finished goods inventory equal to 10% if the next month’s estimated sales. How many units of plastic resin requires to be purchased for August?
A. Timeless Products produces coat racks. The projected sales for the first quarter of the coming year and the beginning and ending inventory data are as follows: Sales 100,000 units; Unit price $15; Beginning inventory 8,000 units; Targeted ending inventory 12,000 units. The coat racks are molded and then painted. Each rack requires four pounds of metal, which cost $2.50 per pound. The beginning inventory of materials is 4,000 pounds. Young Products wants to have 6,000 pounds of metal in inventory at the end of the quarter. Each rack produced requires 30 minutes of direct labor time, which is billed at $9 per hour. 1. Compute for the budgeted materials purchases cost. 2.Compute for the budgeted direct labor cost