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- The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Labor-Hours Required Department A B с (hours/unit) Product 1 Product 2 Hours Available Production 1.00 0.30 Profit contribution/unit $30.00 0.20 38.27 0.35 0.20 0.50 $15.00 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 69.77 M 95 72.09 38 50 (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? Dept A What is the upper limit of what…Climate Control, Inc., makes expedition-quality rain gearfor outdoor enthusiasts. Management prepared a forecast ofsales (in suits) for next year and now must prepare a produc-tion plan. The company has traditionally maintained a levelworkforce strategy. All nine workers are treated like familyand have been employed by the company for a number ofyears. Each employee can produce 2,000 suits per month.At present, finished goods inventory holds 24,000 suits. Thedemand forecast follows: Use the Sales and Operations Planning with SpreadsheetsSolver in OM Explorer or develop your own spreadsheetmodels to address the following questions. a. Management is willing to authorize overtime in pe-riods for which regular production and current lev-els of anticipation inventory do not satisfy demand.However, overtime must be strictly limited to no morethan 20 percent of regular-time capacity. Managementwants to avoid stockouts and backorders and is notwilling to accept a plan that calls for shortages.…3. High carbon steel or alloy steel can be used for the set of tools on a lathe The tools must be sharpened periodically. Data for each are as follows High carbon steel 60 pcs 4 hours Alloy stee! 70 pcs 6 hours Output per hour Time between tool grinds Time required to change 1 hour tools The wage of the lathe operator is Php50 per hour, based on actual working hours. The total changer costs Php60 per hour Overhead costs for the lathe are Php15 per hour, includng tool-change time A set of unsharpened alloy steel costs Php880 and can be ground five times. What type of steel shoukd be used? I hour
- 2 3. The seven-person maintenance function at a hospital performs both preventive and corrective maintenance on hundreds of items each month. All the workers are scheduled for 40 hours per week and there are four weeks in a month. It is the gool of the maintenance deportment to achieve 90% utilization with a mix of two-thirds preventive maintenance and one-third corrective moaintenance. How many hours each month are spent performing corrective maintenance if they achieve their 90% utilization and correct/preventive mix targets?IIn a job shop, effective capacity is only 69 percent of design capacity, and actual output is 76 percent of effective output. What design capacity would be needed to achieve an actual output of 13 jobs per week? What is its effective capacity? a. The Design Capacity needed to achieve the required actual job outputs =Blank 1 (round to whole number) b. The Effective Capacity needed to achieve the required actual job outputs = Blank 2 (round to whole number) Blank 1 Blank 2 Add your answer Add your answerExercise 6: The Good Furniture makes two products: tah les and chairs, which mustbe processed through assemb ly and finishing dep artments. Assemb ly dep artment is availah le for 60 hours in every production period, while the finishing dep artment is availab le for 48 hours ofwork. Manufacturing one tab le req uires 4 hours in the assemb ly and 2 hours in the finishing, Each chair requires 2 hours in the assemb ly and 4 hours in the finishing, One tab le contrib utes P80 to the profit, while a chair contrib utes P60. The prob lem is to determine the numb er of tab les and chairs to makeper productionperiod, in order to maximize the profit. Exercise 7: A small generator b urns two types of fuel: bw sulfur and high sulfur to produce electricity. For one hour, each galon of bw sulfur emits.3 units of sulfur dioxide, generates 4 kilowatts electricity and costs P60. Eachgalbn of high sulfur emits 5 units of sulfur djexide, generates 4 kilbwatts electricity , and costs P50. The…
- The Ace Manufacturing Company has orders for three similar products. Orders (units) Product Min A s.t. B с 1 Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are shown below. Machine 2 3 LB A C B с 1 Product 112₂ 3 Machine 1 Capacity Machine 2 Capacity Machine 3 Capacity 2,200 Product A Orders Product C Orders 400 xij≥0 for all i, j. 1,400 Product B Orders Capacity (units) 1,500 1,500 Use the transportation model to develop the minimum cost production schedule for the products and machines. (a) Show the linear programming formulation. (Let XA1 be the number of units of product A produced by machine 1, X;; be the number of units of product i produced by machine j, etc.) 1,100 $1.00 $1.30 $1.10 1 $1.20…9. The Ace Manufacturing Company has orders for three similar products: Orders Product (units) A 2000 500 1200 B C Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect per- centages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are as follows: Сараcity (units) Product Machine Machine A в C 1500 $1.00 $1.30 $1.10 $1.20 $1.40 $1.00 $0.90 $1.20 $1.20 1 1500 1000 3 Use the transportation model to develop the minimum cost production schedule for the products and machines. Show the linear programming formulation. 123A manager must decide which type of machine to buy, A, B, or C. Machines costs are as follows: Machine Cost A $40,000 B $30,000 C $80,000 Product forecast, processing times on the machines, and setup times are as follows: Processing Time Per Unit (minutes) Product Annual Demand A B C Setup Times (minutes) Production Lots (units) 1 16,000 3 4 2 20 200 2 12,000 4 5 3 35 100 3 6,000 5 6 3 60 50 4 30,000 2 4 1 15 500 Machines operate 10 hours a day, 250 days a year. The manager wants to have a capacity cushion of 10%. a. Assume that only purchasing costs are being considered. Which machines would have the lowest total cost, and how many of that machines would be needed? b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $11 each, B machines have an hourly operating cost of $10 each, and C machines have an hourly operating cost of $12 each. Which alternative would…
- Tax Prep Advisers, Inc., has forecasted the following staffingrequirements for tax preparation associates over the next12 months. Management would like three alternative staffingplans to be developed. The company currently has 10 associates. No more than 10new hires can be accommodated in any month because oflimited training facilities. No backorders are allowed, andovertime cannot exceed 25 percent of regular-time capacityon any month. There is no cost for unused overtime capac-ity. Regular-time wages are $1,500 per month, and overtimewages are 150 percent of regular-time wages. Undertime ispaid at the same rate as regular time. The hiring cost is $2,500per person, and the layoff cost is $2.000 per person.a. Prepare a staffing plan utilizing a level workforce strategy,minimizing undertime. The plan may call for a one-timeadjustment of the workforce before month 1.b. Using a chase strategy, prepare a plan that is consistent withthe constraint on hiring and minimizes use of overtime.c.…Consider a law firm with 15 lawyers and 3 paralegals. The firm is struggling to keep up with the high demand for its services, particularly during the busy litigation seasons. It has been observed that the lawyers spend a significant amount of their time on administrative tasks that could potentially be handled by paralegals. After a careful study of the work distribution within the firm, it was determined that 35% of the activities carried out by the lawyers are administrative in nature. Given that each lawyer works 50 hours a week, please determine: (a) How many additional paralegals should the firm hire to handle the administrative tasks currently performed by the lawyers? (b) If the lawyers' time spent on administrative tasks is redirected to billable legal work, by what percentage could the firm potentially increase its billable hours?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.