Question

B C D 1 Due to its popularity, the Black and White Handbag (BW14293) is normally a stock item. However, the 2 handbag is currently out of stock. Rather than producing only enough units to fill Katie's order, 3 management would like to produce a job (Job 114) that is large enough to fill Katie's order and replenish 4 stock. The fabric used for this job can be stacked four layers deep for cutting, while still maintaining the 5 quality and precision of the cut. Therefore, the company is able to realize some economies of scale by 6 producing the handbags in multiples of 4. Management would like to produce enough units in this job to 7 have a minimum of 35 and a maximum of 40 handbags left in stock after Katie's order has been filled. Custom Fabric Ventures Customer Order Form 20 11 Customer: Katie's Boutique 12 Order Date: 10/2/2012 13 Order Due Date: 10/15/2012 14 Description: 15 Black & White Handbag Total Model Number: Quantity BW14923 Unit Sales Price $75 $525 16 17 19 Req. 1: To realize maximum efficiency and meet management's desired level of stock, how many Black & 20 White handbags should be produced in Job 114? Number of handbags to be produced: - 44

Please use the above info to answer the next problems

Answer 1

Req 5:

Production Schedule
For the month of October
Job	Model Number	Stock or Customer	Quantity	Scheduled Start Date	Scheduled End Date
111	Headbands	Perreth	200	10-01	10-03
112	14 inch pillows	Slothower	30	10-04	10-05
113	Draperies	Stock	80	10-06	10-09
114	Black & White	Katie's & stock	40	10-10*	10-11**

Total hours required = 57 (from req 4)

Total hours skilled workforce is available per day = 4 laborers * 8 hours = 32 hours

Number of days required for production = 57 / 32 = 1.78 days = 2 days (rounded off as number of days cannot be in decimal)

*The start date (10-10) will be the day after job 113 ends (10-09)

**The job requires 2 days which are 10-10 and 10-11. Hence the end date is 10-11

Req 6: Indirect materials needed for job 114:

• Oil / lubricants
• Factory cleaning supplies
• Disposable tools

Req 7: Production equipment needed for job 114:

• Scissors
• Cutting board
• Irons
• Sewing machine
• Needles
• Conveyor belt
• Computers / processing tools