1.Help me solve. Show your workThe answers I have are 606100, 606500 both are wrong. The production planning period for flat-screen monitors at Louisiana's Rao Electronics, Inc., is 4 months. Cost data are as follows:$60$110Regular-time cost per monitorOvertime cost per monitorSubcontract cost per monitorCarrying cost per monitor per month$150$4For each of the next 4 months, capacity and demand for flat-screen monitors are as follows:PeriodMonth 12,000Month 22,500Month 31,300Month 42,200DemandCapacityRegular time1.6001,6006501,600Overtime400400100500Subcontract700600700600Factory closes for 2 weeks of vacation.CEO Mohan Rao expects to enter the planning period with 400 monitors in stock. Backordering is not permitted (meaning, for example, that monitors produced in the second month cannot be used in the first month tocover first month's demand)..Minimizing total cost using the transportation method, the total cost is $ (enter your response as a whole number).

Find the Given details below: Given details: Month 1 Month 2 Month 3 Month 4 Demand 2000…

Answered: The production planning period for…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
A forecast of 240 units in January, 320 units in February, and 240 units in March has been approved for the seismic-sensory product family manufactured at the Rockport facility of Maryland Automated, Inc. Three products, A, B, and C, comprise this family. The product mix ratio for products A, B, and C for the past 2 years has been 35 percent, 40 percent,and 25 percent, respectively. Management believes that the monthly forecast requirements are evenly spread over the 4 weeks of each month. Currently, 10 units of product C are on hand. The company produces product C in lots of 40, and the lead time is 2 weeks. A production quantity of 40 units from the previous period is scheduled to arrive in week 1. Thecompany has accepted orders of 25, 12, 8, 10, 2, and 3 units of product C in weeks 1 through 6, respectively. Prepare a prospective MPS for product C and calculate the availableto-promise inventory quantities.
Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters. The number of available days of production and the anticipated demand are given below. Employees Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Demand Q1 2,400 6,019,000 They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below. 30 70 units/employee/quarter Q2 2,200 $1,000/unit $200/unit/quarter $1,500/unit <= 25% of Reg. Production Q3 1,700 Q4 1,800 Hire Cost Fire Cost Subcontracting Cost Subcontracting Limit Inventory Cost Initial Inventory $1,200/employee $800/employee $1,800/unit 400 units maximum $100/unit/quarter 280 units Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with inventory and backorders as needed. What is the total cost of this…
Smart Manufacturing Company (SMC) manufactures a variety of products other than the drum components for printers. Their high selling mobile juicer cup JG-142 has the following expected demand sales figures (in units) over the coming six months: Month 2 3 4 5 Expected Demand (units) 17680 23040 21120 16640 21760 The following planning parameters apply: Current number of workers Output rate per worker Number of regular time hours Number of working days Regular time labour cost Overtime labour cost Planning Parameters 26 4 units/hour 8 hours/day 20 days/month Maximum overtime hours allowed Hiring cost (including training) Layoff cost Inventory carrying cost Backorder cost Opening inventory Planned ending inventory (end of month 6) Material Cost Subcontracting Cost with material Maximum subcontracting allowed $14.00 /hour $21.00 /hour 6 18300 20% of regular worker-hours/month $950 /worker $1780 /worker $1.75 /unit/month Total 118540 $7.00/unit backordered 400 units 900 units $15 /unit $35…
Capacity planning requires a demand forecast for an extended period of time into the future. What concerns would you have regarding an extended forecast as a capacity planner?
Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?
LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming four quarters. Demand in each of the four quarters and production, overtime, and subcontracting capacities are reported in the table below, in addition to the feasible production plan. The relevant costs are: • Regular time production cost is $10/unit. Overtime production cost is $14/unit. Subcontracting cost is $18/unit Inventory is held at a cost of $1/unit/quarter. • Units may be backordered at a cost of $4/unit/quarter. Production Resource Regular Time Q1 Overtime Q1 Subcontract Q1 Regular Time Q2 Overtime Q2 Subcontract Q2 Regular Time Q3 Overtime Q3 Subcontract Q3 Demand in Quarter Demand in Quarter Q2 0 20 0 550 Q1 550 230 0 0 0 0 40 40 0 860 250 470 0 40 0 1330 What is the inventory cost for the year? What is the backorder cost for the year? What is the total cost for the year? Q3 0 0 0 0 0 30 510 160 0 700 What is the total overtime production cost for the year? Capacity 550 250 500…
QuestionByron Sports is a manufacturer of sportswear. It produces all of its products in one department using a process costing system.The information for the current month is as follows:Beginning work in process (30% complete as to conversion cost) 12,000 unitsUnits started 90,000 unitsUnits completed and transferred out ?Ending work in process (70% complete as to conversion) 8,000 unitsCosts:Beginning work-in-process direct materials $28,800Beginning work-in-process conversion $5,040Direct materials added during month $216,000Conversion costs incurred during the month $139,200Direct materials are added at the beginning of the process. Conversion costs are incurred uniformlythroughout the production process. Costing is handled on a FIFO basis Required:a. Prepare a production cost worksheet using 5 steps approach.b. Under what conditions would a process costing system be more appropriate than a job order costing system? Explain.
The planner at a company that makes garden tractors is about to prepare an aggregate production plan that will cover the next 6 months. She has collected the following information: Month Demand Forecast Above the available capacity through permanent workforce 1 1,000 2 1,000 3 2,000 4 3,000 5 4,000 6 1,000 Total: 12,000 Production per month = 20 units per worker Initial inventory = 500 units Desired ending inventory (at the end of month 6) = 0 units Cost: Hire cost = $500 per temporary worker Inventory = $10 per tractor per month Backorder = $150 per tractor per month The optimum aggregate plan is: Month 1 2 3 4 5 6 Total Forecast Demand above regular capacity 1,000 1,000 2,000 3,000 4,000 1,000 12,000 # of temporary workers required 50 50 100 150 200 50 Temp. Workers hired 25 25 50 75 0 0 Temp. workers laid off 0…
DLSU 40,000 (COB 5,000; CCS 15%; CLA 20%; COL 5% and others) Average price per computer device Php25,000Average price per Apple device Php30,000 In DLSU, students from COB, COL, and CLA purchased at least one (1) computer device in December 2020. What is the market penetration of computer device in the individual colleges? Given that students replace their computer devices once every 2 years on average, what is the projected market size (units/revenues) for computer devices for these colleges until the end of 2025? What is the concentration of sales/revenue of computer devices among the colleges (CDI)?
Prescribed fire is an important tool for foresters. A recent article describes how decision analysis is used to decide when, where and what to burn. In one example, a number of areas in the Tahoe National Forest in California had been logged and were being prepared for replanting. Preparation included prescribed burning, and two possible treatments were available: burning the slash as it lay on the ground, or “yarding of and merchantable material” (YUM) prior to burning. The latter treatment involves using heavy equipment to pile the slash. YUM reduces the difficulty of controlling the burn but costs an additional $100 per acre. In deciding between the two treatments two uncertainties were considered critical. The first was how the fire would behave under each scenario. For example, the buyer could be fully successful, problems could arise which could be controlled eventually, or the fire could escape entailing considerable losses. Second if problems developed, they could result in…

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