A manufacturer of rotary pumps is planning production for the next four months. The forecast demand...
17. Production planning. DirectCo sells an item whose demand over the next four months is 100, 140, 210 and 180 units, respectively. The company can stock just enough supply to meet each month's demand, or it can overstock to meet the demand for two or more successive and consecutive months. In the latter case, a holding cost of $1.20 is charged per overstocked unit per month. DirectCo estimates the unit purchase prices for the next four months to be $15,...
Ramos Co. provides the following sales forecast and production budget for the next four months: April May June July Sales (units) 570 650 600 670 Budgeted production (units) 510 640 610 610 The company plans for finished goods inventory of 190 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 30% of next month’s production needs. Beginning direct...
PP.72 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below: Supply/Demand Info Beginning Jan Feb Mar Apr May Jun Forecast (demand) 48,000 52,000 60,000 54,000 58,000 64,000 Regular production Overtime production Subcontract production Ending inventory 6,000 Hired employees Fired employees Total employees 200 Cost variables as as follows: Cost Variables Labor cost/hour $14 Overtime cost/unit $32 Subcontracting cost/unit $29 Holding cost/unit/month $8 Hiring cost/employee $2,500 Firing cost/employee...
Rad Co. provides the following sales forecast and production budget for the next four months: April May June July 500 580 530 600 Budgeted production (units) 442 570 544 540 Sales (units) The company plans for finished goods inventory of 120 units at the end of June. In addition, each finished unit requires 5 pounds of raw materials at cost of $2.00 per pound and the company wants to end each month with raw materials inventory equal to 30% of...
M3_IND4. A gear manufacturer is planning next week's production for four types of gears. Because are limited resources in the plant for production, the manufacturer can outsource the gears by there C purchasing these gears from a regional supplier. The regional supplier can supply a maximum of 400 units of each type of gear. The table below shows the exact demand for the gears, the revenue per unit, and the outsource cost per unit if the gears are purchased from...
Demand over the next four months are 450, 500, 350, and 400 respectively. Regular time production costs $10 per item, and we can make a maximum of 400 items in a given month in regular time. Overtime production costs $16 per item, and as many as 200 items may be produced in overtime each month (in addition to the regular time production). Keeping an item in inventory incurs a cost of $1 per period; backorders cost $3 per period per...
A local firm manufactures children's toys. The projected demand over the next four months for one particular model of toy robot is as follows: MONTH---------------WORKDAYS------------FORECAST DEMAND (IN AGGREGATE UNITS) July 23 3825 August 16 7245 September 20 2770 October 22 4440 Assume that the normal workday is 8 hours. Hiring costs are $350 per worker and firing costs (including severance pay) are $850 per worker. Holding costs are $4 per aggregate unit held per month. Assume that it requires an...
The New England Cycle Company is planning next month’s production of its two bicycles: its B2 tandem cycle built for two and its S10 single-rider 10-speed model. Both models use the same seats and tires. Management has been informed that 2000 seats, 1000 gear assemblies (only the S10 requires a gear assembly), and 2400 tires are available next month for production. On the average, it takes two hours to produce a B2 and three hours to produce a S10 bicycle....
Required information Ramos Co. provides the following sales forecast and production budget for the next four months: July April May 670 June Sales (units) Budgeted production (units) 590 620 690 530 660 630 630 The company plans for finished goods inventory of 210 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 30 % of next month's production...
Required information Ramos Co. provides the following sales forecast and production budget for the next four months: Sales (units) Budgeted production (units) April May June July 530 610 560 630 470 600 570 570 The company plans for finished goods inventory of 150 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs....