Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. Period Forecast 1 250 4 400 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. Period 2 300 Forecast Prepare the capacity plan as below using the level strategy. Costs: Regular:4£, Overtime: 2£, Subcontracting:10£, Inventory:2£, Backorders: 30£ 1 3 3 350 2 PRODUCTION DD0000 5 500 4 6 250 5 Total 2,050 6 Total

Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. Period Forecast 1 250 4 400 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. Period 2 300 Forecast Prepare the capacity plan as below using the level strategy. Costs: Regular:4£, Overtime: 2£, Subcontracting:10£, Inventory:2£, Backorders: 30£ 1 3 3 350 2 PRODUCTION DD0000 5 500 4 6 250 5 Total 2,050 6 Total

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section: Chapter Questions

Problem 111P

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Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. Period 1 2 3 4 5 6 Total Forecast 250 300 350 400 500 250 2,050 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. ok first question: Prepare the capacity plan as below using the level strategy. First: Use the table below to prepare the capacity plan using the level strategy. Period 1 2 3 4 5 6 Total Forecast…
Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. Period 1 2 3 4 5 6 Total Forecast 250 300 350 400 500 250 2,050 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. a) Prepare the capacity plan as below using the level strategy. Period 1 2 … 6 Total Forecast Production: Regular … Overtime … Subcontracting … Output-Forecast…
Because of its labor contract, a company must hire enough labor for 100 units ofproduction per week on one shift or 200 units per week on two shifts. It cannot hire,lay off, or assign overtime. During the fourth week, workers will be available fromanother department to work part or all of an extra shift (up to 100 units). There is aplanned shutdown for maintenance in the second week, which will cut production tohalf. Develop a production plan. The opening inventory is 200 units, and the desiredending inventory is 300 units
Explain and expand these importance of capacity planning. 1. Capacity decisions have a real impact on the ability of the organization to meet future demands for products and services. 2. Capacity decisions affect operating costs. 3. Capacity is usually a major determinant of initial cost. Typically, the greater the capacity of a productive unit, the greater its cost.
Sipple Furniture’s master budget for the year includes $360,000 for fixed supervisory salaries.Practical capacity, which is used to set the fixed overhead allocation rate, is 500 units per month.Supervisory salaries are expected to be incurred uniformly throughout the year. During August, thecompany produced 250 units, incurred production supervisory salaries of $29,000, and reportedunderapplied fixed overhead of $14,000 for supervisory salaries. What is Sipple Furniture’s supervisory salaries spending (budget) variance (rounded to the nearest whole dollar) for August? Is thisvariance favorable (F) or unfavorable (U)?
What cycle time would match capacity and demand if demand is 173 units a day, there are 2 shift(s) of 458 minutes each, and workers are given three 35-minute breaks during each shift, one of which is for lunch or dinner?
The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturing requirements (in thousands of gallons) for the next four quarters are 80, 50, 80, and 130, respectively. A level workforce is desired, relying only on anticipation inventory as a supply option. Stockouts and backorders are to be avoided, as are overtime and undertime.a. Determine the quarterly production rate required to meet total demand for the year, and minimize the anticipation inventory that would be left over at the end of the year. Beginning inventory is zero.b. Specify the anticipation inventory that will be produced.c. Suppose that the requirements for the next four quarters are revised to 80, 130, 50, and 80, respectively. If total demand is the same, what level of production rate is needed now, using the same strategy as part (a)?
True or False: "Capacity planning is concerned with determining the maximum output an organization can achieve within a given period."
No Ai True or False: "Capacity planning is concerned with determining the maximum output an organization can achieve within a given period."
Suppose a chef ices and decorates cupcakes in batches of 100. Each batch requires 30 minutes to setup the equipment, and each cupcake in the batch takes 2 minutes to process. What is the throughput capacity (in cupcakes and/or minutes)? Pick the closest answer. Group of answer choices a .5 b 1 c 1.5 d 2 e 2.5 f 3
capacity is determined by the amount of raw materials available. True or False?
Effective capacity is: Multiple Choice a. also called theoretical capacity. b. base capacity plus time for maintenance, breaks, and absenteeism. c. the amount of capacity that can be used in planning for actual output. d. All of these choices are correct.