Question

Please follow the instructions for credit, thank you!!! #1 Skycell, a major European cell phone manufacturer,...

Please follow the instructions for credit, thank you!!!

#1 Skycell, a major European cell phone manufacturer, is making production plans for the coming year. Skycell has worked with its customers (the service providers) to come up with the forecasts of monthly requirements (in thousands of phones) as shown in the table.

Manufacturing is primarily an assembly operation, and capacity is governed by the number of people on the production line. The plant operates for 20 days a month, eight hours each day. One person can assemble a phone every 10 minutes. Workers are paid 20 euros per hour and a 50 percent premium for overtime. The plant currently employs 1,250 workers. Component costs for each cellphone total of 20 euros. Given the rapid decline in component and finished-product prices, carrying inventory from one month to the next incurs a cost of 3 euros per phone per month. Skycell currently has a no-layoff policy in place. Overtime is limited to a maximum of 20 hours per month per employee. Assume that Skycell has a starting inventory of 50,000 units and wants to end the year with the same level of inventory.

  1. Assuming no backlogs, no subcontracting, and no new hires, formulate the aggregate planning problem to minimize the total cost. (6 pts)
  2. Assume Skycell aims for a level production schedule, what changes you need to make in your formulation? (6 pts)
  3. Now Skecell has a team of 50 people who are willing to work as seasonal works. The cost of bringing them is 800 euros per employee and the layoff cost is 1,200 euros per employee. How do you change your formulation in part a? (6 pts)
  4. Solve part 1 in excel. Is there any value for management to negotiate an increase of allowed overtime per employee per month from 20 hours to 40 hours? (6 pts)
  5. Solve part 2 in excel. (3 pts)

    6. Solve part 3 in excel. (3 pts

    Month

    Demand

    Jan.

    1000

    Feb.

    1100

    March

    1000

    April

    1200

    May

    1500

    June

    1600

    July

    1600

    Aug.

    900

    Sep.

    1100

    Oct.

    800

    Nov.

    1400

    Dec.

    1700

Homework Answers

Answer #1

I have use excel solver to solve the above problem. Please note that I have not used cost of component ($20/unit) because it is a fix cost. ($20*unit produced)

Please find screenshots below

Excel formulation

Solver Parameters

Ans (a)

Ans (b)

Change hours in cell K12 from 20 to 40, this will get 300 ('000 unit) capacity. Set cells P21:P32 to 300 and solve.

Ans (6)

Change cell C14 to $6, and O21:O32 to 1000 ('000 units)

As you can see cost increases than previous solution

Due to time limit I am not able to answer remaining quetion but all can be answered using this model.

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
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...
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...
In order to effectively address the seasonal variation appearing in the annual demand of its products,a...
In order to effectively address the seasonal variation appearing in the annual demand of its products,a bicycle manufacturer starts an aggregate planning.A planning hori- zon of 6 months is used. The (aggregate) demand forecast for the next six months along the number of working days are given below: Month Demand Forcast Number of Working Days Jan 1800 22 Feb 1500 19 Mar 1100 21 apr 900 21 may 1100 22 june 1600 20 If the manufacturer operates 300 days a...
The? S&OP team at Kansas? Furniture, has received estimates of demand requirements as shown in the...
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 of ?$20 per unit per? month, and zero beginning and ending? inventory, evaluate these two plans on an incremental cost? basis: Plan? A: Produce at a steady rate? (equal to minimum? requirements) of 1 comma 000 units per month and subcontract additional units at a ?$70 per unit premium...
PLEASE PLEASE ANSWER ASAP. THANK YOU! 1. Consider Derek's budget information: materials to be used, $63,000;...
PLEASE PLEASE ANSWER ASAP. THANK YOU! 1. Consider Derek's budget information: materials to be used, $63,000; direct labor, $198,800; factory overhead, $396,100; work in process inventory on January 1, $187,100; and work in progress inventory on December 31, $197,400. What is the budgeted cost of goods manufactured for the year? a.$647,600 b.$657,900 c.$845,000 6. Use the information for the company below to answer the question that follow. A company is preparing its cash budget. Its cash balance on January 1...
Mr. Alex is the head of operations at TractParts Pvt. Ltd., a well known Indian manufacturer...
Mr. Alex is the head of operations at TractParts Pvt. Ltd., a well known Indian manufacturer of pumps, engines, electric motors and transformers. The company is one of India’s earliest industrial groups established in the 1980 which has grown to be a big player in the Indian manufacturing industry. TractParts under the supervision of Mr. Alex has been supplying modern tractor engines to the leading tractor manufacturing firms like Sonalika and John Dear. The bulk of demand for tractors comes...
Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight-...
Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Cost per Case Cream base Variable 100 ozs. $0.02 $...
1. Metaphor Electronics Inc., a cell phone manufacturing company, manufactures keypads in one process. It also...
1. Metaphor Electronics Inc., a cell phone manufacturing company, manufactures keypads in one process. It also manufactures batteries in a second process and speakers in the third process. These three major subcomponents are assembled together in the final process to manufacture the cell phone. This scenario is an example of _____. sequential processing parallel processing partial processing job-order processing 2. Trux Metals Inc. manufactures a product that passes through three departments: Melting, Skimming, and Molding. In August, the company produced...
Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight-...
Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Cost per Case Cream base Variable 100 ozs. $0.02 $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT