The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May January February 1,500 1,700 1,700 2,200 2,100 June March July August 1,800 April 1,900 1,800 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 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 and rate of production are both 1,600 units per month. The cost of hiring additional workers is $55 per unit. The cost of laying off workers is $80 per unit. Evaluate this plan. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,500 in February incurs a cost of layoff for 100 units in February. Layoff (Units) Stockouts Ending Inventory 200 Hire Period Month Demand Production (Units) (Units) O December 1 January 1,600 1,600 1,600 1,500 2 February 1,700 1,500 3 March 1,700 1,700 4 April 1,900 1,700 5 May 2,200 1,900 6. June 2,100 2,200 7 July 8 August 1,800 2,100 1,800 1,800 OOOOOOOO OOOOD OON OOOOD OOO

The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May January February 1,500 1,700 1,700 2,200 2,100 June March July August 1,800 April 1,900 1,800 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 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 and rate of production are both 1,600 units per month. The cost of hiring additional workers is $55 per unit. The cost of laying off workers is $80 per unit. Evaluate this plan. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,500 in February incurs a cost of layoff for 100 units in February. Layoff (Units) Stockouts Ending Inventory 200 Hire Period Month Demand Production (Units) (Units) O December 1 January 1,600 1,600 1,600 1,500 2 February 1,700 1,500 3 March 1,700 1,700 4 April 1,900 1,700 5 May 2,200 1,900 6. June 2,100 2,200 7 July 8 August 1,800 2,100 1,800 1,800 OOOOOOOO OOOOD OON OOOOD OOO

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Planners for a company that makes several models of skateboards are about to prepare the aggregate plan that will cover six periods. They have assembled the following information. Period 1 2 3 4 5 6 Total Forecast 200 200 300 400 500 200 1,800 Costs Output Regular time=$2 per skateboard Overtime =$3 per skateboard Subcontract =$6 per skateboard Inventory =$1 per skateboard per period on average inventory Back orders =$5 per skateboard per period They now want to evaluate a plan that calls for a steady rate of regular-time output, mainly using inventory to absorb the uneven demand but allowing some backlog. Prepare an aggregate plan and determine its cost using the preceding information.
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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: alculator DEPREFERESSESES Cara be Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $65 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs Evaluate the following plan. This exercise contains only Plan E. Plan E: Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of the demand. Subcontract cost is $75 per unit. mummill M Pla $100433443 January February March April MESS Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August Ask my instructor 1,400 1,600 1,800 1,800 Demand 1.400 1,600 1,800 1,800 2,200 2,100 1,800 1.400 May June July August Production (Units) 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 2,200 2.100 1.800 1,400 S Plan E Subcontract…
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Identify the variables decision makers have to work with in aggregate planning.
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