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 unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce to produce the prior month's demand. The firm produced 1,300 units in June. The cost of hiring additional workers is $30 per unit produced. The cost of layoffs is $65 per un 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 1200 in August requires a layoff (and related costs) of 100 units in August). Layoff (Units) Stockouts (Units) Hire Ending Inventory Month Demand Production (Units) 1 July 1200 2 August 1300 3 September 1200 4 October 1700 5 November 1650 6 December 1650
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- The S&OP team at Kansas Furniture, led by David Angelow, 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 $25 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: 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 $60 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 1300 in August requires a layoff (and related costs) of 0 units in August). Month Hire Demand Production (Units) Layoff Ending (Units) Inventory Stockouts (Units) 1 July 1300 2 August 1150 3 September 1100 4 October 1600 5 November 1900 6 December 1900The 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 B: Vary the workforce to produce the prior month's demand. The firm produced 1,300 units in June. The cost of hiring additional workers is $35 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). A) see image B)The total cost, excluding normal time labor costs, for Plan B = C)The total stockout cost =3) AGGREGATE PLANNING Mark Tuan, Operations Manager at GOT7 Furniture, has received the following estimates of demand requirements: January 1,100 February 1,200 March 1,400 April 1,800 May 1,800 June 1,600 Assuming stockout costs for lost sales of RM100 per unit, inventory carrying costs of RM25 per unit per month, and a zero beginning and ending inventory. Analyze the extra cost if the company vary the workforce, which performs at a current production level of 1,300 units per month. The cost of hiring additional workers is RM3,000 per 100 units produced. The cost of layoffs is RM6,000 per 100 units cut back.
- JAYB, manager of a Fabrication company, has the following aggregate demand requirements and other data for the upcoming four quarters. Table 5: Forecast and cost information [Jadual 5: Maklumat Ramalan dan kos] Quarter [Suku] Demand [Permintaan] Previous quarter's output [Keluaran suku sebelumnya] 1,500 units 1 1,400 Beginning inventory [Inventori awal] 200 units 2 1,000 Hiring workers [Pengambilan pekerja] RM6 per unit 3 1,500 Laying off workers [Pembuangan pekerja] RM11 per unit 4 1,300 Unit cost [Kos unit] RM30 per unit With the information given, JAYB wants you to calculate the total cost of using chase strategy by hiring and layoff workers.The planner at a company that makes garden tractors is about to prepare an aggregate production plan that will cover the next 6 months. She has collected the following information: Month Demand Forecast Above the available capacity through permanent workforce 1 1,000 2 1,000 3 2,000 4 3,000 5 4,000 6 1,000 Total: 12,000 Production per month = 20 units per worker Initial inventory = 500 units Desired ending inventory (at the end of month 6) = 0 units Cost: Hire cost = $500 per temporary worker Inventory = $10 per tractor per month Backorder = $150 per tractor per month The optimum aggregate plan is: Month 1 2 3 4 5 6 Total Forecast Demand above regular capacity 1,000 1,000 2,000 3,000 4,000 1,000 12,000 # of temporary workers required 50 50 100 150 200 50 Temp. Workers hired 25 25 50 75 0 0 Temp. workers laid off 0…Points: 0 of 1 Save The S&OP team at Kansas Furniture, has received estimates of demand requiroments 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 $60 per unit premium cost Subcontracting capacity is limited to 500 units per month (Entor all responses as whole numbers) ETIT Ending Production Inventory 1,200 Subcontract Month 1 July 2 August 3 September Demand 1200 (Units) 1300 1,200 1200 1,200 October 1700 1,200 1,200 5 November 6 December 1650 1400 1,200
- The XYZ company has two plants producing "K Specials". It has the following expected data for the next month's operations. Variable (incremental) costs vary linearly from zero production to maximum capacity production. plant A plant B Max. Capacity, units 1,000 800 Total fixed cost 750,000 480,000 Variable (incremental) Costs Max. Capacity 900,000 800,000 Performance has not been good, so the company expects to receive domestic orders for only 1,200 units next month at a price of 1,400 per unit. How should the production be distributed between the plants for optimum economic operation? A. Plant A should produce 800 units and 400 units for Plant B. B. Plant A should produce 1,000 units and 200 units for Plant B. C. Plant A should produce 700 units and 500 units for Plant B. D. Plant A should produce 900 units and 300 units for Plant B.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…What are demand forecasting and capacity strategy? Give an example of demand forecasting for a business.
- Consider the planned construction of new office building in a downtown area of a large city when office space in in surplus demand (i.e. more office space than users). 1. Explain how the analysis would change if the office were in high demand.1. Develop an aggregate plan for the following forecast Period 3 4 5 6 7 Total 1 2 8 Forecast 190 230 260 280 210 170 160 260 180 1,940 There are 20 workers who can produce 10 units per period at a cost of P6.00 per unit. There is no beginning invetory and the cost of carrying inventory is P5.00 per unit per period. Backlog cost is P10.00 per unit per period. Will the present workforce able to produce the forecast? b. What is the total cost of the plan? a.EZ-Windows, Inc. manufacturers replacement windows for the home remodeling business. In January, the company produces 15,000 windows and ended the month with 9,000 windows in inventory. EZ-Windows' management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the productioncapacities, and the storage capabilities as shown in Table 2, the management team does not think a smooth production schedule with the same production quantity each month possible.The company's cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1.00 for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next will increase total costs by $0.65 for each unit decrease in the…