Question

Livingston Fabrication has created the following aggregate plan for the next five months: August September October...

Livingston Fabrication has created the following aggregate plan for the next five months:

August

September

October

November

December

Forecasting demand (units of finished goods)

1,000,000.00

1,000,000.00

2,000,000.00

4,000,000.00

1,000,000.00

Production plan

2,000,000.00

2,000,000.00

2,000,000.00

2,000,000.00

2,000,000.00

Assume that Livingston will have nothing in inventory at the end of July. Livingston employs 500 production assembly workers and it takes one production assembly worker 3 minutes to assemble one unit of finished good. (The unit is complete at that point.) Each production assembly worker can provide 160 hours of assembly time a month without requiring overtime pay.

Livingston wants to complete this plan without working any overtime in assembly. How many additional production assembly workers does Livingston need to hire, in order to accomplish this? When should they be hired?

Using this production plan, how many units will be in inventory at the end of October?

What will the average inventory level be each month?

Homework Answers

Answer #1

Computations

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 4: Aggregate Planning Plan production for a four month period: June through to September. For...
Question 4: Aggregate Planning Plan production for a four month period: June through to September. For June and July you should produce to exact demand forecast. For August and September you should use overtime and inventory with a stable workforce. Stable means the number of workers needed for July will be held constant through September. However the Ministry of Labour regulations put a maximum of 5000 hours of overtime labour per month in August and September (Zero overtime in June...
Bengal Co. provides the following unit sales forecast for the next three months: July August September...
Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 5,000 5,700 5,560 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for July are: Group of answer choices 6,250 units. 3,750 units. 6,425 units. 2,500 units. 5,175 units.
Osage, Inc., has actual sales for May and June and forecast sales for July, August, September,...
Osage, Inc., has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May 5,930 units June 6,240 units Forecast: July 5,910 units August 6,890 units September 5,630 units October 5,210 units Required: a. The firm’s policy is to have finished goods inventory on hand at the end of the month that is equal to 70% of the next month’s sales. It is currently estimated that there will be 4,137 units on...
Raw Materials Purchases Budget 2020 July August September TOTAL October Units Produced Yards of RM Required...
Raw Materials Purchases Budget 2020 July August September TOTAL October Units Produced Yards of RM Required Per Unit of FG Total Yards Used in Production Plus: Desired Yards in Ending Inventory Total Yards Required Less: Yards in Beginning Inventory RAW MATERIALS PURCHASES (YARDS) Cost per Yard RAW MATERIALS PURCHASES (COST) Please fill the raw material budget Each mask is referred to as a finished good unit. Although the company makes both adult and children’s sizes, each mask will be treated...
Croy Inc. has the following projected sales for the next five months: Month Sales in Units...
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,430 May 3,840 June 4,550 July 4,105 August 3,950 Croy’s finished goods inventory policy is to have 50 percent of the next month’s sales on hand at the end of each month. Direct materials costs $3.20 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month’s production needs on hand at the...
Croy Inc. has the following projected sales for the next five months:    Month Sales in...
Croy Inc. has the following projected sales for the next five months:    Month Sales in Units April 3,570 May 3,890 June 4,510 July 4,110 August 4,000 Croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. Direct material costs $2.90 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at...
Croy Inc. has the following projected sales for the next five months: Month Sales in Units...
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,580 May 3,890 June 4,540 July 4,110 August 3,990 Croy’s finished goods inventory policy is to have 50 percent of the next month’s sales on hand at the end of each month. Direct materials costs $2.70 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month’s production needs on hand at the...
Croy Inc. has the following projected sales for the next five months: Month Sales in Units...
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,590 May 3,800 June 4,560 July 4,145 August 3,950 Croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. Direct material costs $2.60 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the...
Croy Inc. has the following projected sales for the next five months:    Month Sales in Units...
Croy Inc. has the following projected sales for the next five months:    Month Sales in Units April 3,560 May 3,905 June 4,510 July 4,155 August 3,900 Croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. Direct material costs $2.70 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the...
Croy Inc. has the following projected sales for the next five months: Month Sales in Units...
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,600 May 3,810 June 4,570 July 4,170 August 4,000 Croy’s finished goods inventory policy is to have 70 percent of the next month’s sales on hand at the end of each month. Direct material costs $2.90 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the...