The answer in the boxes is incorrect. Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $30 per unit produced. The cost of layoffs is $60 perunit cut back. (Enter all responses as whole numbers.)Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1200 in August requires a layoff (and related costs) of 100 unitsin August).Month123 September4 October5 November6DecemberJulyAugustDemand120013001200170016501650Production130012001300120017001650Hire(Units)0100050000Layoff Ending(Units) Inventory300010005000ooooo0000Stockouts(Units)000000

Answered: Plan B: Vary the workforce to produce…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

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When demand for future resources is expected to decrease, the company can start to plan ways to shed the capacity so that it will not be burdened with significant excess capacity in future quarters. a) Identify the strategy of capacity to be used by the company. State the reason to choose the strategy. b) Explain the scenario in the context of Resource Planning. How this will be reflected in Annual Operations plan.
Using the data in "Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?a) What is the brea k-even point in dollars for proposal A if youadd $10,000 installation to the fixed cost?b) What is the break-even point in dollars for proposal B if youadd S l 0,000 installation to the fixed cost?
Day 17 Problem The following data is from Penny’s Purse Company. They budgeted to manufacture and sell 2,000 purses but actually manufactured and sold 1,900 purses. The following data is provided: Price and Variable Costs Per Unit: Standard Actual Sales Price $75.00 $85.00 Direct Materials Cost 8.00 9.00 Direct Labor Cost 12.00 10.00 Expected Fixed Costs in Total: Manufacturing $95,000 $75,000 General, Selling, and Administrative 40,000 45,000 Calculate the flexible budget variances for Penny’s Purse Company and indicate whether each variance is Favorable (F) or Unfavorable (U)
Develop a chase aggregate plan for Draper using apermanent workforce of 12 employees supplemented by overtime.All demand must be met each period.(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.
DAT, Inc., needs to develop an aggregate plan for its product line. Relevant data are Management prefers to keep a constant workforce and production level, absorbingvariations in demand through inventory excesses and shortages. Demand not met is carriedover to the following month.Develop an aggregate plan that will meet the demand and other conditions of theproblem. Do not try to i nd the optimum; just i nd a good solution and state the procedureyou might use to test for a better solution. Make any necessary assumptions.
Static Budget versus Flexible Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: Hagerstown CompanyMachining DepartmentMonthly Production Budget Wages $1,064,000 Utilities 56,000 Depreciation 92,000 Total $1,212,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced May $1,142,000 93,000 June 1,081,000 84,000 July 1,034,000 76,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for May–July have been significantly less than the monthly static budget of 1,212,000. However, the plant manager believes that the budget should not remain fixed for every month but should “flex” or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the…
Defintion of the word "what-if" For capacity planning, how may a spreadsheet be utilized?
Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?
Exercise 8-37, 8-38, 8-39 & 8-40 (Static) (LO 8-2, 3, 5) Skip to question [The following information applies to the questions displayed below.]Pacific Ink had beginning work-in-process inventory of $744,960 on October 1. Of this amount, $304,920 was the cost of direct materials and $440,040 was the cost of conversion. The 48,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs. During October, 102,000 units were transferred out and 30,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $2,343,600 for direct materials and $3,027,840 for conversion. Exercise 8-37 (Static) Compute Costs per Equivalent Unit: Weighted-Average Method (LO 8-3) Required: a. Compute the equivalent units for the materials and conversion cost calculations. b.…
The table below provides the aggregate plan of production by a firm. It is known that the firm uses a chase plan. The firm’s labor cost is $13/unit, hiring cost is $350 per unit of increase, and unit firing cost is $400 per unit of decrease in production. Given this information, what is the number in the cell with the question mark?
What are demand forecasting and capacity strategy? Give an example of demand forecasting for a business.
For what types of firms is the theory of constraints analysis most appropriate? Why?

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