The S&OP team at Kansas Furniture, has received the following estimates of demand requirements: July 1,800 July Aug. Sept. Oct. Nov. Dec. Assume regular-time production cost of $50 per unit, inventory carrying costs of $25 per unit per month, and 100 unit beginning inventory at the beginning of July. Create an aggregate plan that would produce at a steady rate of 1,300 units per month and subcontract additional units at a $60 per unit premium cost. What is the cost of this plan? Total Aug. Sept. Oct. 1,200 1,400 Demand 1800 1200 1400 1800 1000 1600 Regular Time Production Cost = Subcontract Cost = Nov. 1,800 1,000 Inventory Cost = Total Cost = Beginning Inventory Dec. 1,600 Regular Time Production Subcontract Ending Inventory

The S&OP team at Kansas Furniture, has received the following estimates of demand requirements: July 1,800 July Aug. Sept. Oct. Nov. Dec. Assume regular-time production cost of $50 per unit, inventory carrying costs of $25 per unit per month, and 100 unit beginning inventory at the beginning of July. Create an aggregate plan that would produce at a steady rate of 1,300 units per month and subcontract additional units at a $60 per unit premium cost. What is the cost of this plan? Total Aug. Sept. Oct. 1,200 1,400 Demand 1800 1200 1400 1800 1000 1600 Regular Time Production Cost = Subcontract Cost = Nov. 1,800 1,000 Inventory Cost = Total Cost = Beginning Inventory Dec. 1,600 Regular Time Production Subcontract Ending Inventory

Name: 3E20F33. The S&OP team at Kansas Furniture, has received the followin
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Description: 3E20F33. The S&OP team at Kansas Furniture, has received the following estimates of demandrequirements:July1,800July4Aug.Sept.Oct.Nov.Dec.$Assume regular-time production cost of $50 per unit, inventory carrying costs of $25 perunit per month, and 10

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The S&OP team at Kansas Furniture has received the following estimates of demand requirements: Month Expected Demand Jul 1,000 Aug 1,200 Sep 1,400 Oct 1,800 Nov 1,800 Dec 1,800 Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $20 per unit per month, and subcontracting cost of $45 per unit. Evaluate the following plan: keep the current workforce steady at a level producing 1,300 units per month. Subcontract the remainder to meet demand. Assume that 300 units remaining from June are available in July. A) What is the total inventory carrying cost? B) What is the total subcontracting cost? C) What is the stockout cost?
ABCL Corporation predicts the following sales in units for the coming four months: May June July August September Unit sales …… 400 500 520 480 540 Finished goods inventory on April 30: 120 units Raw materials inventory on April 30: 450 pounds Desired ending inventory each month: Finished goods: 30% of next month's sales Raw materials: 25% of next month's production needs Number of pounds of raw material required per finished unit: 4 lbs. Required: How many pounds of raw materials should be purchased in May?
Total cost and number of units in the first seven months of 2020 are given below. According to this information, which of the following is the total cost in August if the company produces 470 units? Periods Total Cost No.of Units January 300 30,600 February 31,120 310 March 31,900 325 April 350 33,200 Мay 380 34,760 June 410 36,320 July 37,360 430 Select one: a. 41,550 O b. 48,000 c. 43,650 d. 39,440
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year Ast Quarter 10, 400 Quarter 8, 000 3rd Quarter 6, 200 th Quaeter Units to be produced 10, 500 Each unit requires 0.35 direct labor-hours, and direct loborers ere paid S14.00 per hour. Required: 1. Prepore the company's direct labor budget for the upcoming fiscal year (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Rordan Corporason Drect Lacor Budget 1st Quarter 2nd Quarter Srd Quaner 4th Quarter Year Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost
A manufacturing company, VMTC PLC, makes the product, blitz. Monthly sales forthe first five months of 2022 have been estimated as: Month UnitsJanuary 210 000February 180 000March 210 000April 220 000May 200 000Additional Information:i. Actual units sold in 2021 November and December were 190 000 and 220 000,respectively.ii. One unit of blitz requires 2 kg of material at $3.50 per kg.iii. One unit of blitz requires half an hour of direct labour at a rate of $12 per hour.iv. Based on past experience, 60% of cash is received in the month of sale, 25% thefollowing month, 10% two months after and 5% is usually irrecoverable.v. Selling price is $18 per unit.vi. The company intends to have finished stock at the end of each month equivalent to15% of the following month’s budgeted sales.…
Calculate the EOQ for exercise 8 if annual demand is 10,000 units,inventory storage costs average 20 percent, unit price is $50, and orderingcosts are $30.
Consider the following information: Jan Feb Mar Sales (units) 4.9k 52.00k Production (units) 5.8k 52.30k 56.65k April sales are expected to be 71.50k units. The firm has 9.1k units on hand at the beginning of Jan and wishes to maintain 10% of the next month's unit sales in storage at the end of each month. Required: Calculate the expected unit sales for Mar. Note: The term "K" is used to represent thousands (x 1,000). kunits (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)
The PILLOW Co. manufactures two products, AA and BB. The following are projections for the coming month: AA BBSales P100,000 P150,000Costs: Variable 60,000 40,000 Fixed cost for the period is P45,000. 1. Compute for the total breakeven sales.2. Determine the sales requirement for each product to breakeven.
‏The ABC Company consumes inventory of 67,500 units of components per year . The carrying cost per unit is RO 1.50 . The fixed order cost is RO 25 per order . The production planning is 365 - day year . a . What is the Economic Order Quantity ( EOQ ) ? Interpret . b . Calculate and interpret the optimal number of orders to be placed. c. If it takes five days to receive an order from suppliers, at what inventory level should ABC Company place another order? Interpret .
GF Incorporated, a manufacturer of power systems, usesovertime, inventory, and subcontracting to absorb fluctua-tions in demand. An annual production plan is devised andupdated quarterly. The expected demand and available ca-pacities for the next four quarters are as follows:Relevant cost data are as follows:Regular production cost per unit $20Overtime production cost per unit $25Subcontracting cost per unit $30Inventory holding cost per unit per period $ 3Beginning inventory 0Design a production plan that will satisfy demand at mini-mum cost. Regular Overtime SubcontractingPeriod Demand Capacity Capacity Capacity1 2000 1000 1000 50002 4500 1000 1000 50003 7500 1000 1000 50004 3000 1000 1000 5000
Livingston Fabrication has created the following aggregate plan for the next five months: August September November 1,500,000 1,500,000 3,000,000 Forecasted Demand (units of finished goods): Production Plan: 2,000,000 2,000,000 a. 64 October 2,000,000 b. none c. 112 d. 224 e. 145 2,000,000 2,000,000 December 500,000 Assume that Livingston will have nothing in inventory at the end of July. Livingston employs 1,000 production assembly workers and it takes one production assembly worker 5 minutes to assemble one unit of finished good. (The unit is complete at that point.) Each production assembly worker can provide 150 hours of assembly time a month without requiring overtime pay. 2,000,000 Livingston wants to complete this plan without working any overtime in assembly. Logically, how many additional production assembly workers should Livingston hire to start in August?
A June sales forecast projects that 5,500 units are going to be sold at a price of $10.50 per unit. The desired ending inventory of units is 10% higher than the beginning inventory of 650 units. Total June sales are anticipated to be: O $57,750 O $55,065 O $55,060 O $63,525 O $55,000 F2 F3 0+ $ M E R % 5 F6 D F7 F8 7

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