A company has the beginning workforce is 120 employees. The monthly output peremployee is 100 units. The costs to hire and lay off a worker are $2,000 and $3,000,respectively. The cost to carry an item in inventory for one month is estimated at$10, and the stockout cost is $25 per unit. What is cost of the level sales andoperations plan?Month1Demand 6,500A) $224,000B) $127,000C) $291,000D) $345,000238,700 5,300458,700 14,20064,600Total48,000

Operational plans ensure that the resources and efforts of the organization are aligned with its…

Answered: A company has the beginning workforce…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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4) The cost driver for demand creation activity is: a. Increase in sales b. Number of orders c. Value of stock d. Value of materials stored
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A bookstore has an annual demand for 44,000 copies of a best-selling book. It costs $0.50 to store one copy for one year, and it costs $80 to place an order. Find the optimum number of copies per order. A. 3,752 copies B. 5,307 copies C. 4,530 copies OD. 3,377 copies
Suppose that the demand for a product is 25 units per month, and the items are withdrawn uniformly. The set up cost each time a production run is made is $15. The production cost is $1 per item, and the inventory holding cost is $0.30 per item per month. Assuming shortages are not allowed, determine how often to make a production run and what size it should be. If shortages cost is $1.5 per item per month, determine how often to make a production run and what size it should be.
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Demand for devil’s food whipped-cream layer cake at a local pastry shop can be approximatedusing a Poisson distribution with a mean of six per day. The manager estimates it costs $9 to prepare each cake. Fresh cakes sell for $12. Day-old cakes sell for $9 each. What stocking level isappropriate if one-half of the day-old cakes are sold and the rest thrown out?
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Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.
Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. How many units of Item X should be ordered each time? When should Item X be ordered? How much would be Item X's total annual purchasing cost? How much would be Item X's total annual procurement cost? Including its total annual purchasing cost, how much would be Item X's total annual inventory cost? What is Item X's average inventory level? How much would be Item X's total annual storage cost? How much would be Item X's total annual stockout cost? How many times per year would Item X be ordered?
Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct materials per unitproduced. Assume that it is currently at the end of the first quarter of the year, and there are 50,000pounds of material on hand. The company’s policy is to maintain an end-of-quarter inventoryof materials equal to 25 percent of the following quarter’s material requirements for production.How many units of product were produced in the first quarter of the year? Under the assumptionthat production will increase by 10 percent in the second quarter, what are the direct materialsrequirements (in pounds) for planned production in the second quarter?
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