Given the projected demands for the next sixmonths, prepare aggregate plan must wind upwith no units in ending inventory in Period 6.Regular time capacity is 150 units per month.Overtime cost is $20 per unit, backorder cost is$30 per unit, inventory holding cost is $10 perunit based on maximum, subcontracting cost is$40 per unit, regular time cost of $20 per unit,and beginning inventory is 10.Month 1 2 3 45 6Forecast 150 170 140 160 130 160a. Prepare an aggregate plan with inventory andbacklog allowed. Overtime and subcontractingare not allowed.b. Prepare an aggregate plan if the managementdecided to switch to chase strategy. They onlyallow backlog if absolutely needed. Regularproduction capacity is now 160.

The projected demands for the next six months - Month 1 2 3 4 5 6 Forecast 150 170 140 160 130…

Answered: Given the projected demands for the…

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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14.26. Calculate the available-to-promise row in the following matrix: Period On Hand = 100 1 2 3 4 5 6 Forecast 50 100 50 100 50 100 Customer Orders 50 125 75 175 45 15 Master Production 200 200 Schedule Available-to-Promise
WSS company makes weatherproof surveillance systems for parking lots. Demand estimates for the next four quarters are 25, 9, 13, and 17 units. Prepare an aggregate plan that uses inventory, regular time and overtime and back orders. Subcontracting is not allowed. Regular time capacity is 15 units for quarters 1 and 2, 18 units for quarters 3 and 4. Overtime capacity is 3 units per quarter. Regular time cost is $2000 per unit, while overtime cost is $3000 per unit. Back order cost is $300 per unit per quarter; inventory holding cost is $100 per unit per quarter. Beginning inventory is zero. Questions At the end of quarter 3, what is the ending inventory of finished systems? Answer: No ending Inventory =0 What is the total cost? 15*2000 + 6*2300 +4*2600 + 9*2000 + 13*2000 + 17*2000 =$132, 200 What is the average cost per unit? Answer 132200 / 64 = $2,066.
WSS company makes weatherproof surveillance systems for parking lots. Demand estimates for the next four quarters are 25, 9, 13, and 17 units. Prepare an aggregate plan that uses inventory, regular time, and over time, and backorders. Subcontracting is not allowed. The regular time capacity is 15 units for quarters 1 and 2, 18 units for quarters 3 and 4. Overtime capacity is 3 units per quarter. The regular time cost is $2000 per unit, while the overtime cost is $3000 per unit. Backorder costs $300 per unit per quarter; inventory holding costs $100 per unit per quarter. The beginning inventory is zero. How many total units will be produced in quarter 1 for delivery in quarter 1? How many units in total will be used to fill back orders over the four quarters? What is the cost to produce one unit in Quarter 4 using overtime to fill a back order in quarter one?
The president of Hill Enterprises, Terri Hill, projectsthe firm’s aggregate demand requirements over the next 8 monthsas follows:Jan. 1,400 May 2,200Feb. 1,600 June 2,200Mar. 1,800 July 1,800Apr. 1,800 Aug. 1,800 Her operations manager is considering a new plan, whichbegins in January with 200 units on hand. Stockout cost of lostsales is $100 per unit. Inventory holding cost is $20 per unit permonth. Ignore any idle-time costs. The plan is called plan A.Plan A: Vary the workforce level to execute a strategy thatproduces the quantity demanded in the prior month. TheDecember demand and rate of production are both 1,600 unitsper month. The cost of hiring additional workers is $5,000 per100 units. The cost of laying off workers is $7,500 per 100 units.Evaluate this plan.
The table given below shows a partially completed MPS record for product A. What is the remaining ATP inventory (discrete) for week 7 after the company receives a 20 units of customer order for week 6? Order policy: 60 units Lead time: 1 week Item: A Quantity on hand: 30 Week 3 30 7. 34 11 4. Forecast requirements Customer orders (booked) Projected on-hand inventory MPS quantity MPS start ATP inventory 22 24 18 27 36 28 26 12 24 O a 59 Ob. 29 OcO Od. 49 Oe. 39
What is the available-to-promise amount for week 3 of the final master schedule bases on the figures shown in the table below? Master Schedule: Make-to-Stock Chase Production Beginning Inventory = 60 Units; Lot Size = 100 Units Week 0 1 2 3 4 5 6 Forecast 60 70 50 80 60 40 Customer orders 58 65 46 63 30 0 OHI 60 0 30 80 0 40 0 MPS 100 100 100 ATP 2 35 X 70
The demand information is given below. Month Jan Feb Mar Apr May Jun Demand 1,900 2,800 4,700 5,600 5,600 1,750 A worker can produce 25 units per month. Assume that the beginning inventory in January is 450 units, and the firm desires to have 300 units of inventory at the end of June. Use a chase production strategy to compute the monthly production, ending inventory/(backlog) and workforce levels. Do not round intermediate calculations. Round your answers to the nearest whole number. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". Month Jan Feb Mar Apr May Jun Demand 1,900 2,800 4,700 5,600 5,600 1,750 Production Ending inventory 450 Workforce Use a level production strategy to compute the monthly production, ending inventory/(backlog) and workforce levels. Do not round intermediate calculations. Round your answers to the nearest whole number. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". Month Jan Feb Mar…
Describe how the theory of constraints can be used to manage inventory.
Jill wants you to consider a hybrid aggregate plan, usingup to the maximum overtime per employee for any periodwhere demand cannot be satisfi ed with the current regular-timeproduction and the available inventory. Back orders can occur.(a) Show what would happen if this plan were implemented.(b) Calculate the costs associated with this plan.(c) Evaluate the plan in terms of cost, customer service,operations, and human resources
. If the opening backlog is 450 units, forecast demand is 700 units, and production is800 units, what will be the ending backlog?
Prepare a master production schedule with the information given as follows. The forecast for each week of am eight week schedule is 50 units. The MPS rule is to schedule production if the projected on hand inventory would be negative without it. Customer orders are as follows. Production lot size is 75, safety stock is 10 and no beginning on hand inventory. Calculate available to promise (ATP) quantity for each period. Week Customer Orders 1 52 2 35 3 20 4 12 Period Forecast Cust.Ord. SS Proj. OH MPS ATP
The demand information is given below. Month Demand Jan Feb Mar Apr May Jun 1,900 2,900 4,800 5,800 5,800 1,950 A worker can produce 25 units per month. Assume that the beginning inventory in January is 800 units, and the firm desires to have 150 units of inventory at the end of June. a. Use a chase production strategy to compute the monthly production, ending inventory/(backlog) and workforce levels. Do not round intermediate calculations. Round your answers to the nearest whole number. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". Month Demand Jan 1,900 Feb Mar Apr May Jun 2,900 4,800 5,800 5,800 1,950 Production 1100 2900 4800 5800 5800 2100 Ending inventory 800 0 150 Workforce 44 116 192 232 232 84 b. Use a level production strategy to compute the monthly production, ending inventory/(backlog) and workforce levels. Do not round intermediate calculations. Round your answers to the nearest whole number. Use a minus sign to enter a negative…

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