A company wants to develop a level production plan for a family of products. The opening inventory is 300 units, and an increase to 450 units is expected by the end of the plan. The number of working days is the same for each period. There are no backorders. The anticipated demand for each period is given in the below table. How much should the company produce eac period? What will be the ending inventories in each period? Period 2 Forecast Demand 360 Planned Production Planned 300 inventory 300 3 375 4 390 5 345 6 330 Total

A company wants to develop a level production plan for a family of products. The opening inventory is 300 units, and an increase to 450 units is expected by the end of the plan. The number of working days is the same for each period. There are no backorders. The anticipated demand for each period is given in the below table. How much should the company produce eac period? What will be the ending inventories in each period? Period 2 Forecast Demand 360 Planned Production Planned 300 inventory 300 3 375 4 390 5 345 6 330 Total

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...

See similar textbooks

Similar questions

A company wants to develop a level production plan for a family of products. Theopening inventory is 500 units, and a decrease to 250 units is expected by the end ofthe plan. The demand for each of the months is given in what follows. How muchshould the company produce each month? What will be the ending inventory in eachmonth? Do you see any problems with the plan?
A company forecasts demand for a component at around 2,500 units a year. They make the component internally, and it costs $500 to set up each production run with a variable cost of $30 a unit. The holding costs are 20 % of value a year and the production rate is 10,000 units a year. There is a lead time of two months from receiving a production requisition until finished units begin to come from the production line. Question: How long is each inventory cycle (in weeks)?
. Worldwide Can-Openers, Inc., makes a family of two hand-operated can openers. The production plan is based on months. There are 4 weeks in this month. Opening inventory is 2000 dozen, and it is planned to increase that to 4000 dozen by the end of the month. The MPS is made using weekly periods. The forecast and projected available balance for the two models follow. The lot size for both models is 1000 dozen. Calculate the production plan and the MPS for each item.
A jewelry manufacturer is creating a routine order schedule for some new products: J66 and J67. J66 can be ordered any time. J67 is set up to be ordered every 4 weeks. The company is closed 2 weeks out of a 52 week year otherwise it is open. Given the following, show me the calculation (I have provided the final answer) the questions at the end: J66 acceptable stockout risk = 2.5%, lead time = 2 weeks, ordering cost =$70, annual holding cost = 30%, unit cost =$15, standard deviation = 4 units per week, and average weekly demand is 60 units. J67 acceptable stockout risk = 2.5%, lead time = 2 weeks, ordering cost =$30, annual holding cost = 30%, unit cost =$20, standard deviation = 5 units per week, and average weekly demand is 70 units. I know the reorder point for j67 is 153 units on hand. 1) Show me the math to come up with the 153 units answer. 2) What is the reorder point for the J66? (I know the answer is 306 units so show me the calculation), 3) If the J67 has 110 units on…
For a given store demand in Week 5 is 375 and onhand inventory at the end of Week 4 is 450 If the manufacturing lead time for this particular item is two weeks then what will be the Store demand
The table below provides demand data for 6 weeks (weeks 31-36 for the current year) for one product. Inventory is managed with a periodic review system where T = 5 weeks and M = 280. The previous order was for 120 units at the end of week 28. The lead time is a constant 4 weeks. At the beginning of week 31 the inventory level is 130 units. Orders are made at the end of a week. 1. When is the next order? end of week __________ 2. How large is the next order? ___________ Week Demand Inventory 31 30 32 40 33 45 34 30 35 30 36 30
Determine an A-B-C classification for these items: Which items are A, B, and C - explain how you derive the answers? Use a table or excel spreadsheet to illustrate your work. Item Unit Cost Annual Volume (000)1 300 252 90 303 30 604 50 105 15 706 100 407 10 60 Hint:Determine the Annual Dollar Value (Unit Cost * Annual Volume) for each item and the sum of the individual Annual Dollar Values. Arrange the items in descending order based on Annual Dollar Values. Then, determine the percentage of items and the percentage of…
A company wants to develop a level production plan for a family of products. The opening inventory is 550 units, and a decrease to 200 units is expected by the end of the plan.The demand for each of the periods is given in what follows. All periods have the samenumber of working days. How much should the company produce each period? Whatwill be the ending inventories in each period? Do you see any problems with the plan?
A product's demand in cach period follows a Normal distribution with mean of 50 and standard deviation of 6. The order up to level S is 225. Lead time is 3 periods. What is the Expected On hand Inventory? Show all formulas used. calculations and results. What is the stock out probability ? Show all formulas used, calculations and results.
Birka Styles & Co is introducing a new line of beachwear for their retail stores. The manager needs to decide how many lots of the new beachwear to order for their stores. The marketing came up with a payoff table (see below) considering information about the price, projected sales level, and cost of inventory and ordering. DEMAND Order size Low Medium High 1 lot 12,000 15,000 15,000 2 lots 9,000 25,000 35,000 3 lots 6,000 35,000 60,000 The owner wants to use the Hurwicz method and gave the manager a Hurwica alpha (α) of 0.6. How many lots should the manager order?
Birka Styles & Co is introducing a new line of beachwear for their retail stores. The manager needs to decide how many lots of the new beachwear to order for their stores. The marketing came up with a payoff table (see below) considering information about the price, projected sales level, and cost of inventory and ordering. DEMAND Order size Low Medium High 1 lot 12,000 15,000 15,000 2 lots 9,000 25,000 35,000 3 lots 6,000 35,000 60,000 The owner found out that: P(Low demand) = 1/3; P(Med demand) = 1/2; P(High demand) = 1/6. Which of the following decision is NOT true? A)The best decision is to order 3 lots for a payoff of $29,500. The probabilities gave me enough information to perform a Laplace approach. B)The best decision is to order 3 lots for a payoff of $29,500. The probabilities gave me enough information to perform the EMV approach. C)The EVPI is $2,000. D)The EVwPI is $31,500.
A company wants to develop a level production plan for a family of products. Theopening inventory is 100 units, and an increase to 130 units is expected by the endof the plan. The demand for each month is given in what follows. Calculate the totalproduction, daily production, and production and ending inventory for each month.