requirements over a typical six-month periöd are as145.6Requirement 750800750600900700Produce# ofEmployeesHireLayoffBeginningInventoryEndingInventoryAverageInventoryThe current workforce level is 4 workers.Production rate is 150/worker/month.The following costs apply:Wages = $2,000/worker/monthHiring cost - $200/workerLayoff Cost = $250/workerInventory holding cost = $1/unit/monthBack ordering cost - $2/unit/monthIf a Level strategy is used, what is the total inventory cost, whichincludes inventory holding cost and back ordering cost? First, youneed to determine the quantity to produce every period.00s OO 1100O 450O 9003.2.

Find the Given details below: Period 1 2 3 4 5 6 Total Requirement 750 700 800 750 600 900 4500

Answered: requirements over a typical six-month…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Answer the following questions applying the Constant Workforce strategy assuming: one daily shift of 8 hours, a $10 hour salary, a hiring cost of $400, a firing cost of $500, a storage cost of $10 , and a late order cost of $20. January February March April May June Total 1 Days 21 20 23 21 22 22 129 2 Units per Worker 126 3 Demand 1840 4068 3980 3540 3180 2642 19250 4 Workers Needed 5 Workers Available 30 6 Workers Hired 7 Hiring Cost 8 Workers Fired 9 Firing Cost 10 Current Workers 11 Labor Cost 12 Produced Units 13 Net Inventory 14 Storage Cost 15 Late Orders Cost 16 Total Cost a) Labor cost in January: b) Net inventory in April: c) Late…
Problem 2. You are supplied with a monthly demand forecast, an organizational policy of requiring 10% of a month's forecast as safety stock, and the number of operating days available each month. There is no inventory available at the beginning of the first month, January. The following table contains the demand requirements. 2. 3. 4. 5. 6. 7. 8. Beginning inventory Forecasted demand January 0 10,000 1,000 Safety Stock Production requirements (2+3-1) Operating days Cumulative forecasted demand Cumulative production 11,000 requirements Cumulative operating days 11,000 22 10,000 22 February March April May 1,000 1,500 3,000 2,700 15,000 30,000 27,000 30,000 1,500 3,000 2,700 3,000 15,500 19 25,000 31,500 26,700 30,300 21 22 21 82,000 112,000 55,000 26,500 58,000 84,000 115,000 129,600 41 62 83 June 3,000 16,000 1,600 105 14,600 20 128,000 125
Last Year Sales $208,000 $221,000 Cost of goods sold 106,000 116,000 Gross margin 102,000 105,000 Other expenses 49,000 49,000 Net income 53,000 56,000 Finished goods inventory 2,700 5,000 Work-in-process inventory 11,000 8,000 Raw material inventory 5,500 7,000 Total inventory (average for year) 19,200 20,000 Other current assets 93,000 109,000 Other assets 210,000 249,000 Total assets 322,200 378,000 ^THIS YEAR The plant manager, Murat Kristal, at York Technologies makes Aircraft Navigation Systems. He expects you, as the new OM analyst, to provide some insight for performance of the plant. High on his list is an understanding of his inventory…
Last Year Sales $208,000 $221,000 Cost of goods sold 106,000 116,000 Gross margin 102,000 105,000 Other expenses 49,000 49,000 Net income 53,000 56,000 Finished goods inventory 2,700 5,000 Work-in-process inventory 11,000 8,000 Raw material inventory 5,500 7,000 Total inventory (average for year) 19,200 20,000 Other current assets 93,000 109,000 Other assets 210,000 249,000 Total assets 322,200 378,000 ^THIS YEAR The plant manager, Murat Kristal, at York Technologies makes Aircraft Navigation Systems. He expects you, as the new OM analyst, to provide some insight for performance of the plant. High on his list is an understanding of his inventory…
1. Nasrin, Rashed and Tahmid run a Chocolate manufacturing company. Their productionruns 30-hour per week and they pay $6 per hour to their labors. Material cost is $3.5 per lbs.Machine productivity is 2.5 times weekly labor cost. Overhead is $300 per week. The weeklyproductivity figures are given below:Weeks Output (Units) Labors Material (lbs)1 1400 8 362 1500 9 343 1250 6 334 1300 7 35 a) Compute multi-factor productivity of machine and material for each of the monthsshown for their Chocolate manufacturing firm.b) Compute multi-factor productivity of Labor and Overhead for each of the months shownfor their Chocolate manufacturing firm.c) Compute total productivity measure for each of the months shown for their Chocolatemanufacturing firm.d) What do the productivity figures suggest? undefined
In a form of phrase, give 7 Training and Development Policies on a Construction Firm in each: a.) Employees b.) OJT students/trainees In a form of phrase, give 7 necessary skills or importance that will be acquired by the employees on a Construction Firm from these various trainings: a.) Induction Training b.) Health and Safety Training c.) Corporate and Departmental Training
31) Maimouna Company is providing the following information to you in an intention to calculate the total cost of the company. The cost of the machinery is OMR 50,000 where estimated life is 5 years, Material Used OMR 40,000, Labour OMR 20,000 and Variable Overheads OMR 30,000. Determine the total cost. a. OMR 80,000 b. OMR 180,000 c. None of the options d. OMR 100,000
Assume you are the manager of a shop that assembles power tools. You have just received an order for 50 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws follows: Iten Lead Time (weeks) On Hand Sav 2 A B C 4202 D E 15 10 E(3) & E(2) LT=1 week Lot size: Lot-for-Lot Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipt Planned order release 5 65 20 10 30 Components A(2), B(1), C(4) E(3), D(1) Develop the material requirements plan for component E using lot-for-lot ordering for all items. (Leave no cells blank - be certain to enter "0" wherever required.) Beg: Inv D(2), (3) E(2), D(2) 2 9
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A manager faces peak (weekly) demand for one of her op-erations, but is not sure how long the peak will last. She caneither use overtime from the current workforce, or hire/lay off and just pay regular-time wages. Regular-time pay is$550 per week, overtime is $825 per week, the hiring cost is$2,000, and the layoff cost is $3,000. Assuming that peopleare available seeking such a short-term arrangement, howmany weeks must the surge in demand last to justify atemporary hire? Hint: Use break-even analysis (see Supple-ment A, “Decision Making Models”). Let w be the numberof weeks of the high demand (rather than using Q for thebreak-even quantity). What is the fixed cost for the regular-time option? Overtime option?

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