The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,400 May 2,200 February 1,600 June 2,300 March 1,600 July 1,700 April 1,900 August 1,300 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan B. Plan B: Produce at a constant rate of 1,300 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $80 per unit. Subcontracting capacity is limited to 1,000 units per month. Evaluate this plan by computing the costs for January through August. Part 2 In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers). Period Month Demand Production Ending Inventory Subcontract Units 0 December 200 1 January 1,400 1,300 enter your response here enter your response here 2 February 1,600 1,300 enter your response here enter your response here 3 March 1,600 1,300 enter your response here enter your response here 4 April 1,900 1,300 enter your response here enter your response here 5 May 2,200 1,300 enter your response here enter your response here 6 June 2,300 1,300 enter your response here enter your response here 7 July 1,700 1,300 enter your response here enter your response here 8 August 1,300
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
|
January
|
1,400
|
May
|
2,200
|
|
February
|
1,600
|
June
|
2,300
|
|
March
|
1,600
|
July
|
1,700
|
|
April
|
1,900
|
August
|
1,300
|
Part 2
|
Period
|
Month
|
Demand
|
Production
|
Ending Inventory
|
Subcontract Units
|
|
0
|
December
|
|
|
200
|
|
|
1
|
January
|
1,400
|
1,300
|
enter your response here
|
enter your response here
|
|
2
|
February
|
1,600
|
1,300
|
enter your response here
|
enter your response here
|
|
3
|
March
|
1,600
|
1,300
|
enter your response here
|
enter your response here
|
|
4
|
April
|
1,900
|
1,300
|
enter your response here
|
enter your response here
|
|
5
|
May
|
2,200
|
1,300
|
enter your response here
|
enter your response here
|
|
6
|
June
|
2,300
|
1,300
|
enter your response here
|
enter your response here
|
|
7
|
July
|
1,700
|
1,300
|
enter your response here
|
enter your response here
|
|
8
|
August
|
1,300
|
|
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