The Silver Star Bicycle Company will be manufacturing both men's and women's models of its Easy-Pedal 10-speed 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 demandforecasts call for 150 men's and 125 women's models to be shipped during the first month and 200 men's and 150 women's models to be shipped during thesecond month. Additional data are shown:ProductionLabor Requirements (hours)CurrentModelCostsManufacturingAssemblyInventoryMen's$1202.01.520Women's$901.61.030Last month the company used a total of 1000 hours of labor. The company's labor relations policy will not allow the combined total hours of labor(manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory atthe rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model ininventory at the end of the two months.a. Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements.What inventories will be maintained, and what are the monthly labor requirements? If required, round your answers to the nearest whole number. If anamount is zero, enter "0"Production schedule:The optimal solution is to produceof the men's model in month 1,of the men's model in month 2,units of thewomen's model in month 1, andof the women's model in month 2.Total Cost$

Production theory refers to the theory that helps in devising methods of production that lead to…

Answered: The optimal solution is to produce of…

The optimal solution is to produce of the men's model in month 1, of the men's model in month 2, units of the women's model in month 1, and of the women's model in month 2. Total Cost = $

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 69P: The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.
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…
Table 1. Demand of Hairdryer from January to July [Jadual 1. Permintaan Pengering Rambut dari Januari 2021 hingga Julai 2021] Month Demand January February 2800 2870 March 2968 April Мay 3000 3100 Jun 3150 July 3400 a) Calculate forecast future demand for May, June, July and August by using 3 months simple moving average.[hitung ramalan permintaan masa depan untuk bulan Mei, Jun, Julai dan Ogos dengan menggunakan purata bergerak sederhana 3 bulan.] *
Describe situations in which the single-period model is appropriate and solve typical problems.
16. All merchandise planning starts with and is based on: Group of answer choices Planned sales Planned OTB Actual sales Planned stocks
Demand for stereo headphones and MP3 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 last year was as follows: MONTH DEMAND (UNITS) January 4,120 February 4,220 March 3,920 April 4,320 May 4,920 June 4,620 July 5,220 August 4,820 September 5,320 October 5,620 November 6,220 December 5,920 a. Using linear regression analysis, what would you estimate demand to be for each month next year? (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 level of confidence? (Do not round intermediate calculations. Round…
On the morning of October 31st, Elaine Black, Chief Information Officer at Robatelli'sPizzeria, was waiting for both Jim Saxton, database administrator, and PeterGreyton, operations manager, to come to her office for a meeting. While waiting,Elaine was thinking about the surge of telephone and Internet orders expected to bereceived through the company's customer order center within the next 12 hours.Halloween had always been the most popular day of the year for people in thegreater Pittsburgh area to order pizza from Robatelli's. There were 53 restaurantlocations to serve these customers, but only one location to receive all of the ordersand forward them to the right restaurant. Elaine's thoughts were interrupted as Jimand Peter entered her office. The following conversation took place:ELAINE Well, guys, it's here again, our biggest day of the year. Not only isHalloween a busy day, but we have the upcoming day afterThanksgiving, the week before Christmas, and Super Bowl Sunday. Canour…
On the morning of October 31st, Elaine Black, Chief Information Officer at Robatelli'sPizzeria, was waiting for both Jim Saxton, database administrator, and PeterGreyton, operations manager, to come to her office for a meeting. While waiting,Elaine was thinking about the surge of telephone and Internet orders expected to bereceived through the company's customer order center within the next 12 hours.Halloween had always been the most popular day of the year for people in thegreater Pittsburgh area to order pizza from Robatelli's. There were 53 restaurantlocations to serve these customers, but only one location to receive all of the ordersand forward them to the right restaurant. Elaine's thoughts were interrupted as Jimand Peter entered her office. The following conversation took place:ELAINE Well, guys, it's here again, our biggest day of the year. Not only isHalloween a busy day, but we have the upcoming day afterThanksgiving, the week before Christmas, and Super Bowl Sunday. Canour…
Demand for stereo headphones and MP3 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 last year was as follows: MONTH DEMAND (UNITS) January 4,000 February 4,100 March 3,800 April 4,200 May 4,850 June 4,500 July 5,150 August 4,750 September 5,250 October 5,550 November 6,150 December 5,850 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 3.7. (picture below)(Do not round intermediate calculations. Round your answers to 2 decimal places.) Month Forecast january february march april may june july august september october november december
Demand for stereo headphones and MP3 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 last year was as follows: MONTH DEMAND (UNITS) January 4,000 February 4,100 March 3,800 April 4,200 May 4,850 June 4,500 July 5,150 August 4,750 September 5,250 October 5,550 November 6,150 December 5,850 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 3.7. (picture below)(Do not round intermediate calculations. Round your answers to 2 decimal places.) Month Forecast january february march april may june july august september october november december b. To…
A method of estimating future demand usedfor decision making in order to set reasonable targets and control orlimit uncertainties or risks.