Lauren produces designer dog collars. She expects to sell 60,000 collars in April; 75,000 collars in May; 70,000 collars in June; and 65,000 collars in July. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit collar sales. Due to excessive production during March, on March 31 there were 25,000 collars in the ending inventory. Required: Prepare a production budget for April, May and June. Problem #2: Given the following information, prepare a monthly materials purchases budget for the plastic needed to make the company's water cannons for the second quarter of 2024. Month Required Production in units March 320 April 350 May 390 June 340 July 330 Standard Cost Card Water Cannons Item Standard Quantity Standard Cost Total Cost per unit Plastic 2 oz $0.50 per oz $1.00 Triggers 1 $0.25 per trigger 50.25 Direct Labor 5 secs $15 per hour $0.021 Additional information and assumptions: - The production manager wants 75% of the plastic needs on hand at the end of each month to ensure they never run out. The company had 505 oz of plastic on hand at the end of March.

Lauren produces designer dog collars. She expects to sell 60,000 collars in April; 75,000 collars in May; 70,000 collars in June; and 65,000 collars in July. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit collar sales. Due to excessive production during March, on March 31 there were 25,000 collars in the ending inventory. Required: Prepare a production budget for April, May and June. Problem #2: Given the following information, prepare a monthly materials purchases budget for the plastic needed to make the company's water cannons for the second quarter of 2024. Month Required Production in units March 320 April 350 May 390 June 340 July 330 Standard Cost Card Water Cannons Item Standard Quantity Standard Cost Total Cost per unit Plastic 2 oz $0.50 per oz $1.00 Triggers 1 $0.25 per trigger 50.25 Direct Labor 5 secs $15 per hour $0.021 Additional information and assumptions: - The production manager wants 75% of the plastic needs on hand at the end of each month to ensure they never run out. The company had 505 oz of plastic on hand at the end of March.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter11: Linear Optimization Models

Section: Chapter Questions

Problem 13P: The Silver Star Bicycle Company will manufacture both mens and womens models for its Easy-Pedal...

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Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April. and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.
The Silver Star Bicycle Company will manufacture both mens and womens models for its Easy-Pedal bicycles during the next two months. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 mens and 125 womens models to be shipped during the first month and 200 mens and 150 womens models to be shipped during the second month. Additional data are as follows: Last month, the company used a total of 1,000 hours of labor. The companys labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months. (Hint: Define variables for production and inventory held in each period for each product. Then use a constraint to define the relationship between these: inventory from end of previous period + produced this period demand this period = inventory at end of this period.) a. Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. What inventories will be maintained and what are the monthly labor requirements? b. If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? How much will the cost increase? What would you recommend?
Majan Company expects sales of Product G to be 30,000 units in April, 40,000 units in May and 50,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 30% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 20,000 units of Product G in the ending inventory. Majan Company's production of Product G for May should be:
Muscat Manufacturing plans to sell 6,000 chairs during May, 5,700 in June, and 6,000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Muscat produce during June?
Colorado Nursery plans to sell 380 plants during April and 240 units in May. Coronado keeps 25% of the next month's sales as ending inventory. How many units should Coronado produce during April?
Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product W in the ending inventory. Given this information, Walsh Company's production of Product W for the month of April should be:
Li Company manufactures a product requiring 2 pounds of raw material for each finished unit. Raw materials inventory had a balance of on March 1 was 7,000 pounds. The company wants to maintain an ending inventory equal to 40% of the next month’s production needs. Production for March and April is projected to be 4,000 and 5,000 units, respectively. How many pounds of raw material must be purchased in March?
Feline Watch Company makes wrist watches out of silver metal sheets. Feline sold 200 watches in the month of June. It projects July and August sales to be 400 and 600 respectively. The company`s policy is to have 50% of next month`s sales in inventory. If the June ending inventory of watches is 200, how many watches must be produced in July?
Douglas Company plans to sell 24,000 units of Product A during July and 30,000 units during August. Sales of Product A during June were 25,000 units. Past experience has shown that end-of-month inventory should equal 3,000 units plus 30% of the next month's sales. On June 30 this requirement was met. Based on these data, how many units of Product A must be produced during the month of July?
In October, November, and December, CVM Inc. expect to sell 50,000, 48,000, and 51,000 units respectively. The company's policy is to keep an end-of-month finished-goods inventory equal to 40% of the following month's sales. On the basis of this information, how many units would the company plan to produce in November?
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