Question
The Johnson Company manufactures expensive medical diagnostic equipment. It plans to meet all of its projected...
The Johnson Company manufactures expensive medical diagnostic
equipment. It plans to meet all of its projected demand (given
below for the next year by quarter). The firm plans to use a
constant production rate of 440 units/quarter. Production costs are
$21,000 per unit and holding costs are $1,550 per quarter per unit.
Assume no on-hand inventory exists at the beginning of Quarter
1.
| Quarter | 1 | 2 | 3 | 4 |
| Demand | 270 | 525 | 525 | 440 |
a. Find the regular production and ending
inventory. (Leave no cells blank - be certain to enter "0"
wherever required.)
|
b. What is the cost of this production plan?
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Trexoid Inc. makes a popular video game console. Demand varies each month, with highest demand coming...
Trexoid Inc. makes a popular video game console. Demand varies each
month, with highest demand coming in the last quarter of the year.
Regular production costs are $250 per unit and inventory carrying
cost is $3 per unit per quarter. Overtime production cost is $280
per unit. Assume that the 20 current Trexoid employees can produce
a total of 30,000 units per quarter in regular production and can
work enough overtime hours to produce the amount required if a
chase...
Neal Industries manufactures blue jeans for the teen market. The S&OP team has agreed upon a...
Neal Industries manufactures blue jeans for the teen market. The
S&OP team has agreed upon a demand forecast for the following
year, as shown below. The company begins with 1,800,000 jeans in
safety stock and desires to maintain this level consistently (and
end with this level), assume that the overtime production wage rate
is $24 per hour.
Quarter
Demand
1
7,500,000
2
8,300,000
3
15,000,000
4
12,500,000
Current
workforce
300
workers
Average output per worker
25,000
jeans per quarter
Inventory...
Plan production for a four-month period: February through May. For February and March, you should produce...
Plan production for a four-month period: February through May.
For February and March, you should produce to exact demand
forecast. For April and May, you should use overtime and inventory
with a stable workforce; stable means that the number of workers
needed for March will be held constant through May. However,
government constraints put a maximum of 5,000 hours of overtime
labor per month in April and May (zero overtime in February and
March). If demand exceeds supply, then backorders...
Plan production for a four-month period: February through May. For February and March, you should produce...
Plan production for a four-month period: February through May.
For February and March, you should produce to exact demand
forecast. For April and May, you should use overtime and inventory
with a stable workforce; stable means that the number of
workers needed for March will be held constant through May.
However, government constraints put a maximum of 5,000 hours of
overtime labor per month in April and May (zero overtime in
February and March). If demand exceeds supply, then backorders...
Develop a production plan and calculate the annual cost for a firm whose demand forecast is...
Develop a production plan and calculate the annual cost for a
firm whose demand forecast is fall, 10,000; winter, 8,000; spring,
7,000; summer, 12,000. Inventory at the beginning of fall is 500
units. At the beginning of fall, you have 30 workers. It is not
possible to hire any additional workers until next Summer, at which
time temporary workers will be hired at the beginning of Summer and
laid off at the end of Summer. Therefore, no hiring or laying...
Given the following data, develop MRP tables and indicate the Planned order releases for all items....
Given the following data, develop MRP tables and indicate the
Planned order releases for all items.
A is an MPS item. A needs 4 C's, 2 F’s and 5 G’s. F needs 4 C’s
and G needs 2 C’s. (I eliminated scheduled receipts since the
problem did not have scheduled receipts.)
Period
6
7
8
GR-A
0
100
900
On hand inventory for all items is 300 and lead time for A is 1
period, and LT for all other...
Namaste Company manufactures a unique yoga mat. The company began operations December 1, 2018. Its accountant...
Namaste Company manufactures a unique yoga mat. The company
began operations December 1, 2018. Its accountant quit the second
week of operations, and the company is searching for a replacement.
The company has decided to test the knowledge and ability of all
candidates interviewing for the position. Each candidate will be
provided with the information below and then asked to prepare a
series of reports, schedules, budgets, and recommendations based on
that information. The information provided to each candidate is...
Rainy Day Company manufactures a unique umbrella. The company began operations April 1, 2020. Its accountant...
Rainy Day Company manufactures a unique umbrella. The company
began operations April 1, 2020. Its accountant quit the second week
of operations, and the company is searching for a replacement. The
company has decided to test the knowledge and ability of all
candidates interviewing for the position. Each candidate will be
provided with the information below and then asked to prepare a
series of reports, schedules, budgets, and recommendations based on
that information. The information provided to each candidate is...
Plan production for a four-month period: February through May. For February and March, you should produce...
Plan production for a four-month period: February through May.
For February and March, you should produce to exact demand
forecast. For April and May, you should use overtime and inventory
with a stable workforce; stable means that the number of
workers needed for March will be held constant through May.
However, government constraints put a maximum of 5,000 hours of
overtime labor per month in April and May (zero overtime in
February and March). If demand exceeds supply, then backorders...
Namaste Company manufactures a unique yoga mat. The company began operations December 1, 2018. Its accountant...
Namaste Company manufactures a unique yoga mat. The company
began operations December 1, 2018. Its accountant quit the second
week of operations, and the company is searching for a replacement.
The company has decided to test the knowledge and ability of all
candidates interviewing for the position. Each candidate will be
provided with the information below and then asked to prepare a
series of reports, schedules, budgets, and recommendations based on
that information. The information provided to each candidate is...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 20 minutes ago
asked 21 minutes ago
asked 39 minutes ago
asked 51 minutes ago
asked 51 minutes ago
asked 52 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago