Business, 26.05.2021 03:00 toddbecca9

Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a regular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine. Month
1 2 3 4 5 6 7 8 Total
Forecast 120 135 140 120 125 125 140 135 1,040
a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than regular capacity. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
eriod 1 2 3 4 5 6 7 8 Total
Forecast 120 135 140 120 125 125 140 135 1,040
Output
Regular
Overtime
Subcontract
Output - Forecast
Inventory
Beginning
Ending
Average
Backlog
Costs:
Output
Regular
Overtime
Subcontract
Inventory
Backorder
Total
b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month. Backlog cost is $90 per engine per month. There should not be a backlog in the last month. Assume that using overtime is not an option. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
Period 1 2 3 4 5 6 7 8 Total
Forecast 120 135 140 120 125 125 140 135 1,040
Output
Regular
Overtime
Subcontract
Output - Forecast
Inventory
Beginning
Ending
Average
Backlog
Costs:
Output
Regular
Overtime
Subcontract
Inventory
Backorder
Total

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 11:50

Select the correct answer. ramon applied to the state university in the city where he lives, but he was denied admission. what should he do now? a.change his mind about graduating and drop out of high school so he can start working right away. b. decide not to go to college, because he didn’t have a backup plan. c.stay positive and write a mean letter to let the college know that they made a bad decision. d. learn from this opportunity, reevaluate his options, and apply to his second and third choices.

Answers: 2

Answer

Business, 22.06.2019 20:20

Carmen’s beauty salon has estimated monthly financing requirements for the next six months as follows: january $ 9,000 april $ 9,000 february 3,000 may 10,000 march 4,000 june 5,000 short-term financing will be utilized for the next six months. projected annual interest rates are: january 9 % april 16 % february 10 may 12 march 13 june 12 what long-term interest rate would represent a break-even point between using short-term financing and long-term financing?

Answers: 3

Answer

Business, 23.06.2019 02:00

You are considering the purchase of one of two machines used in your manufacturing plant. machine 1 has a life of two years, costs $20,000 initially, and then $4,000 per year in maintenance costs. machine 2 costs $25,000 initially, has a life of three years, and requires $3,500 in annual maintenance costs. either machine must be replaced at the end of its life with an equivalent machine. using eac which is the better machine for the firm

Answers: 1

Answer

Business, 23.06.2019 04:40

What does bargain in good faith mean?

Answers: 1

Answer

You know the right answer?

Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an agg...

Questions