The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table.Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month,and zero beginning and ending inventory, evaluate these two plans on an incremental cost basis:Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontractadditional units at a $70 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter allresponses as whole numbers).EndingInventorySubcontract(Units)MonthDemandProduction1July13001,1002 August11501,1003 September11001,1004 October16001,1005 November19001,1006 December19001,100The total cost, excluding normal time labor costs, for Plan A = $|- (Enter your response as a whole number.) Plan B: Vary the workforce to produce the prior month's demand. The firm produced 1,300 units in June. The cost ofhiring additional workers is $30 per unit produced. The cost of layoffs is $60 per unit cut back. (Enter all responsesas 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 Julyto 1300 in August requires a layoff (and related costs) of 0 units in August).Layoff(Units)EndingInventoryHireStockoutsMonthDemandProduction (Units)(Units)1 July13002 August11503 September11004October16005 November19006 December1900The total hiring cost = $|(Enter your response as a whole number.)The total layoff cost = $[(Enter your response as a whole number.)The total inventory carrying cost = $(Enter your response as a whole number.)The total stockout cost = $. (Enter your response as a whole number.)The total cost, excluding normal time labor costs, for Plan B = $. (Enter your response as a whole number.)

Plan A is the steady production rate plan, in which the production is set to a specific quantity,…

The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate these two plans on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $70 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers).

The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate these two plans on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $70 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers).

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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The total cost, excluding normal time labor costs, for Plan A = $. (Enter your response as a whole number.) 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 $65 per unit 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 1000 in August requires a layoff (and related costs) of 300 units in August). Month 1 2 3 September 4 October July August 5 November 6 December Demand 1000 1200 1400 1800 1800 1800 Hire Production (Units) The total hiring cost = $ The total layoff cost = $ The total inventory carrying The total stockout cost = $ The total cost, excluding normal time labor costs, for Plan B = (Enter your response as a whole number.) (Enter your response as a whole number.) cost = $ (Enter your response as a whole number.) Layoff…
The S&OP team at Ka nsas Furniture has received thefo llowing estimates of demand requirements: a) Assuming one-time stockout costs for lost sales of $ 100 perunit, inventory carrying costs of $25 per unit per month, andzero beginning and ending inventory, evaluate these two planson an incremental cost basis:• Plan A: Produce at a steady rate (equal to minimum requirements)of I ,000 units per month and subcontract additionalunits at a $60 per unit premium cost.• Plan B: Vary the workforce, to produce the prior month'sdemand. The fi rm produced I ,300 units in June. The cost ofhiring additional workers is $3,000 per 100 units produced.The cost of layoffs is $6,000 per l 00 units cut back.Nore: Both hiring and layoff costs are incurred in the month of thechange, (i.e., going from production of I ,300 in July to 1,000 inAugust requires a layofT [and related costs] of 300 units in August,j ust as…
The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate these two plans on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,000 units per month and subcontract additional units at a $60 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Subcontract Ending Inventory Month Demand Production (Units) 1 July 1000 1,000 2 August 1200 1,000 3 September 1400 1,000 4 October 1800 1,000 November 1800 1,000 December 1800 1,000
The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Month Month 1 July 2 August 3 September 4 October 5 November 6 December 1 2 3 September 4 October 5 November 6 December July August The total cost, excluding normal time labor costs, for Plan A = $ (Enter your response as a whole number.) Demand 1300 1150 1100 1600 1900 1200 Production 1,100 1,100 1,100 1,100 1,100 1,100 The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements…
The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,000 units per month and subcontract additional units at a $60 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Subcontract Ending Demand Production Inventory Month 1 July (Units) 1000 1,000 2 August 1200 1,000 3 September 1400 1,000 4 October 1800 1,000 5 November 1800 1,000 6 December 1600 1,000 Overtime Capacity Subcontract Cap Month Demand Regular Time Capacity July August 1200 September October 1800 1000 800 1,000 1,000 800 1400 1,000 800 1,000 800 November 1800 1,000 800 December 1600 1,000 800
The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,000 units per month and subcontract additional units at a $60 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Subcontract Production Inventory 1,000 Month Demand (Units) 1 July 1000 2 August 1200 1,000 3 September 1400 1,000 4 October 1800 1,000 5 November 1800 1,000 December 1600 1,000 Month Demand Regular Time Capacity Overtime Capacity Subcontract Cap. July August 1000 1,000 800 1200 1,000 800 September 1400 1,000 800 October 1800 1,000 800 November 1800 1,000 800 December 1600 1,000 800
The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additional units at a $70 per unit premium cost. Subcontracting capacity is limited to 500 units per month. (Enter all responses as whole numbers). The total cost, excluding normal time labor costs, for Plan A = $ Month Ending Subcontract Demand Production Inventory (Units) 1 July 1200 1,200 0 0 2 August 1300 1,200 0 100 3 September 1200 1,200 0 0 4 October 1700 1,200 0 500 5 November 1650 1,200 0 450 6 December 1400 1,200 0 200 (Enter your response as a whole number.)
The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,000 units per month and subcontract additional units at a $60 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Inventory Subcontract Month Demand Production (Units) 1 July 1000 1,000 2 August 1200 1,000 3 September 1400 1,000 4 October 1800 1,000 November 1800 1,000 6. December 1600 1,000 LO
The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additional units at a $70 per unit premium cost. Subcontracting capacity is limited to 500 units per month. (Enter all responses as whole numbers). Month Demand 1 July 1200 Ending Subcontract Production Inventory (Units) 1,200 2 August 1300 1,200 0 3 September 1200 1,200 0 4 October 1700 1,200 0 5 November 1650 1,200 0 6 December 1400 1,200 0
The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additional units at a $60 per unit premium cost. Subcontracting capacity is limited to 500 units per month. (Enter all responses as whole numbers). Month Demand Production Ending Inventory Subcontract (Units) 1 July 1200 1,200 0 Insert 2 August 1300 1,200 0 Insert 3 September 1200 1,200 0 Insert 4 October 1700 1,200 0 Insert 5 November 1650 1,200…
FI The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January May 2,100 February June 2,200 July 1,800 August 1,800 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan A. Calculator Ask my instructor 2 Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $50 per unit. The cost of laying off workers is $80 per unit. Evaluate this plan. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,200 in February incurs a cost of layoff…
Eastman Publishing company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be P160,000. Variable production and materials costs are estimated to be P6 per book. The publisher plans to sell the text to college and university bookstores for P46 each. A. What is the break-even point? B. What profit or loss can be anticipated with a demand of 3,800 copies? C. With a demand of 3,800 copies, what is the minimum price per copy that the publisher must change to break-even? D. If the publisher believes that the price per copy coud be increase to P50.95 and not affected the anticipated demand of 3,800 copies, what action would you recommend? What profit or loss can be anticipated?