A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. This exercise only contains part a. a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). Table 1 Avg Dem Per Prod. Day Inventory carrying cost Other data $8 per unit per month Production Demand Month Days Forecast Subcontracting cost per unit $12 per unit Average pay rate Overtime pay Rate $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit 1 January 22 950 2 February 18 750 3 March 21 750 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) 4 April 21 1,000 5 May 6 June 22 1,300 20 1,050 $600 per unit The production rate per day units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) Regular Production Subcontract Month Demand (Units) 1 January 950 2 February 750 3 March 750 4 April 1,000 5 May 6 June 1,300 1,050 The total regular production cost = $ (Enter your response as a whole number.) The total subcontracting cost = $| (Enter your response as a whole number.)

Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 45,000 units during the quarter. RTD carries no inventories.     Amount Per Unit Sales revenue $ 1,170,000 $ 26.00 Costs of fitting produced 900,000 20.00 Gross profit $ 270,000 $ 6.00 Administrative costs 207,000 4.60 Operating profit $ 63,000 $ 1.40 Fixed costs included in this income statement are $292,500 for depreciation on plant and machinery and miscellaneous factory operations and $94,500 for administrative costs. RTD has received a request for 10,000 fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD, although they have been a local company for many years. Endicott has offered to pay $20 per unit. RTD can easily produce the 10,000 units with its existing…

Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. 1 2 3 4 5 76 79 82 82 55 Year Forecast demand Currently the manufacturer has eight machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 25 minutes to produce. a. What is the effective capacity of the factory? Round your answer down to the nearest whole number. units/year b. Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity. Round your answers to the nearest whole number. Year Extra capacity needed (units) c. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. Year Additional machines needed 1 1 2 2 3 3 4…

Suppose plant capacity were only 13,000 pieces instead of 15,000 pieces each month. Thespecial order must either be taken in full or be rejected completely. Should Carilla accept thespecial order? Show your calculations

Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 45,000 units during the quarter. RTD carries no inventories.     Amount Per Unit Sales revenue $ 1,170,000 $ 26.00 Costs of fitting produced 900,000 20.00 Gross profit $ 270,000 $ 6.00 Administrative costs 207,000 4.60 Operating profit $ 63,000 $ 1.40 Fixed costs included in this income statement are $292,500 for depreciation on plant and machinery and miscellaneous factory operations and $94,500 for administrative costs. RTD has received a request for 10,000 fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD, although they have been a local company for many years. Endicott has offered to pay $20 per unit. RTD can easily produce the 10,000 units with its existing…

A producer of felt-tip pens has received a forecast of demand of 31,000 pens for the coming month from its marketing department. Fixed costs of $21,000 per month are allocated to the felt-tip operation, and variable costs are 25 cents per pen. a. Find the break-even quantity if-pens sell for $1 each. (Round your answer to the next whole number.) QBEP Answer is complete and correct. Price 28,000 units b. At what price must pens be sold to obtain a monthly profit of $18,000, assuming that estimated demand materializes? (Round your answer to 2 decimal places.) X Answer is not complete.

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Suppose a company has 1,000 units of a raw material part on hand. If 750 of these units are routed into production, should the company place an order to stock up on more of these parts? (Show calculations). Determine the economic order quantity (EOQ) for this part, assuming the following:The company plans to use 10,000 units during the coming year.The company orders this part in lots of 1,000 units, and each order placed carries a processing cost of $2.50.Each unit of inventory carries an annual holding cost of $6.40.

3) Ehrlich Manufacturing Corporation manufactures and sells wooden puzzles. Expected puzzle sales at Ehrlich (in units) for the next three months are as follows:                                            January      February     March budgeted unit sales:          27,000        25,000      30,000  Ehrlich likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales. How many puzzles should Ehrlich plan on producing during the month of February?  Show your calculations.

Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 16,800 nozzles in stock, although the latest estimate for August production indicates a requirement for only 15,000 nozzles. Total uses of the nozzle are expected to be 14,700 in September and 15,540 in October. Nozzles are purchased at a wholesale price of $8. Eliot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 21,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September.