Question
In: Accounting
Problem 8-8 Plan production for a four-month period: February through May. For February and March, you...
Problem 8-8
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 occur. There are 90 workers on January 31. You are given the following demand forecast: February, 80,960; March, 66,240; April, 100,080; May, 40,080. Productivity is four units per worker hour, eight hours per day, 23 days per month. Assume zero inventory on February 1. Costs are hiring, $55 per new worker; layoff, $75 per worker laid off; inventory holding, $11 per unit-month; straight-time labor, $10 per hour; overtime, $15 per hour; backorder, $20 per unit.
Develop a production plan and calculate the total cost of this plan. Note: Assume any layoffs occur at beginning of next month. (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to the nearest whole number.)
| February | March | April | May | |
| Forecast | 80,960 | 66,240 | 100,080 | 40,080 |
| Beginning inventory | ||||
| Production required | ||||
| Production hours required | ||||
| Regular workforce | ||||
| Regular production | ||||
| Overtime hours | ||||
| Overtime production | ||||
| Total production | ||||
| Ending inventory | ||||
| Ending backorders | ||||
| Workers hired | ||||
| Workers laid off | ||||
| February | March | April | May | |
| Straight time | $ | $ | $ | $ |
| Overtime | ||||
| Inventory | ||||
| Backorder | ||||
| Hiring | ||||
| Layoff | ||||
| Total | $ | $ | $ | $ |
| Total cost | $ | |||
Solutions
Expert Solution
| February | March | April | May | |
| Forecast | 80,960 | 66,240 | 100,080 | 40,080 |
| Beginning inventory | 0 | 0 | 0 | 0 |
| Production required | 80,960 | 66,240 | 100,080 | 40,080 |
| Production hours required | 20240 | 16560 | 25020 | 10020 |
| Regular workforce | 110 | 90 | 90 | 90 |
| Regular production | 80960 | 66240 | 66240 | 66240 |
| Overtime hours | 0 | 0 | 5000 | 0 |
| Overtime production | 0 | 0 | 20000 | 0 |
| Total production | 80960 | 66240 | 86240 | 66240 |
| Ending inventory | 0 | 0 | 0 | 26,160 |
| Ending backorders | 0 | 0 | 13,840 | 0 |
| Workers hired | 20 | 0 | 0 | 0 |
| Workers laid off | 0 | 20 | 0 | 0 |
| February | March | April | May | |
| Straight time | $ 202,400 | $ 165,600 | $ 165,600 | $ 165,600 |
| Overtime | $ - | $ - | $ 75,000 | $ - |
| Inventory | $ - | $ - | $ - | $ 287,760 |
| Backorder | $ - | $ - | $ 276,800 | $ - |
| Hiring | $ 1,100 | $ - | $ - | $ - |
| Layoff | $ - | $ 1,500 | $ - | $ - |
| Total | $ 203,500 | $ 167,100 | $ 517,400 | $ 453,360 |
| Total cost | $ 1,341,360 |
Explanations
|
A |
B |
C |
D |
E |
F |
G |
H |
|
|
1 |
February |
March |
April |
May |
||||
|
2 |
Forecast |
80960 |
66240 |
100080 |
40080 |
Productivity |
=G3*G4*G5 |
|
|
3 |
Beginning inventory |
0 |
0 |
0 |
0 |
4 |
units per worker |
|
|
4 |
Production required |
=B2 |
=C2 |
=D2 |
=E2 |
8 |
hours per day |
|
|
5 |
Production hours required |
=B4/4 |
=C4/4 |
=D4/4 |
=E4/4 |
23 |
days per month |
|
|
6 |
Regular workforce |
=B4/G2 |
90 |
=C6 |
=C6 |
|||
|
7 |
Regular production |
=B6*G2 |
=C6*G2 |
=D6*G2 |
=E6*G2 |
|||
|
8 |
Overtime hours |
0 |
0 |
5000 |
0 |
|||
|
9 |
Overtime production |
0 |
0 |
=D8*4 |
0 |
|||
|
10 |
Total production |
=B7+B9 |
=C7+C9 |
=D7+D9 |
=E7+E9 |
|||
|
11 |
Ending inventory |
=B10-B4 |
=C10-C4 |
0 |
=E10-E4 |
|||
|
12 |
Ending backorders |
0 |
0 |
=D2-D10 |
0 |
|||
|
13 |
Workers hired |
=B6-90 |
0 |
0 |
0 |
|||
|
14 |
Workers laid off |
0 |
=B13 |
0 |
0 |
|||
|
15 |
||||||||
|
16 |
February |
March |
April |
May |
||||
|
17 |
Straight time |
=B6*8*23*10 |
=C6*8*23*10 |
=D6*8*23*10 |
=E6*8*23*10 |
 ekkarill92 answered 1 year agoRelated SolutionsPlan 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...
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...
For the 12 month period February 2018 through January 2019, the number of degree days that...For the 12 month period February 2018 through January 2019, the
number of degree days that accrued for the Amherst, MA area was
5903. Many houses in New England heat with oil. Suppose a
reasonable-size house required a total of 1400 gallons of oil for
that recent entire 12- month period. Suppose also that heating oil
is priced at $2.90 per gallon.
A. What was the total cost to purchase the oil to heat the house
for the entire year?...
Month Sales January $100,000 February $120,000 March $150,000 April $180,000 May $150,000 June $120,000 July $150,000...
Month
Sales
January
$100,000
February
$120,000
March
$150,000
April
$180,000
May
$150,000
June
$120,000
July
$150,000
August
$180,000
Actual November and December
2018 sales were $200,000 and $90,000, respectively. Cash sales are
45% of the total and the rest are on credit. About 70% of credit
sales are typically collected one month after the sale and 30% the
second month. Monthly inventory purchases represent 50% of the
following month’s sales. The firm pays 40% of its inventory
purchases in cash...
Month Patient Days January 543 February 528 March 531 April 542 May 558 June 545 July...
Month
Patient Days
January
543
February
528
March
531
April
542
May
558
June
545
July
543
August
550
September
546
October
540
November
535
December
529
Predict naïve forecast of patient days for February and
June.
Predict the patient days for January, using a four-period
moving average.
Predict the patient days for January, using the six-period
moving average.
Plot the actual data and the results of the four period and the
six-period moving averages. Which is a better predictor?
Month Actual Sales Forecast Sales January 8 10 February 11 10 March 12 10 April 14...
Month
Actual Sales
Forecast Sales
January
8
10
February
11
10
March
12
10
April
14
10
-Compute the RSFE, MAD and tracking signals for months January
to April?
Your parents plan to give you $200 a month for four years while you are in...Your parents plan to give you $200 a month for four years while
you are in college. At a discount rate of 6 percent, compounded
monthly, what are these payments worth to you when you first start
college?
$8,797.40
$8,409.56
$8,198.79
$8,516.06
$8,279.32
SALES PER MONTH DURING THE LAST YEAR 20X1 JANUARY $ 550,000 FEBRUARY $ 825,000 MARCH $...SALES PER MONTH DURING THE LAST YEAR 20X1
JANUARY $ 550,000 FEBRUARY $ 825,000 MARCH $ 575,000
APRIL $ 870,000 MAY $ 1,080,000 JUNE $ 1,065,000
JULY $ 1,070,000 AUGUST $ 1,060,000 SEPTEMBER $ 1,180,000
OCTOBER $ 1,140,000 NOVEMBER $ 1,290,000 DECEMBER $ 1,460,000
I. Sales Projection: 20X2
After consulting the Company's Management Committee, it was agreed
that business plans and strategies were deemed appropriate, a 35%
increase in sales reported during the months of last year 20x1. All
sales...
The following data relate to the sales of a product over an 8-month period: MONTH Jan...The following data relate to the sales of a product over
an 8-month period:
MONTH
Jan
Feb
Mar
Apr
May
June
July
Aug
Sales (units)
56
72
70
65
68
75
66
67
Price ($)
75
65
59
69
69
49
59
59
a) Investigate whether sales are affected more by the
level of price or by the change in price of the
product.
b) Interpret the regression coefficient of the
explanatory variable.
c) Forecast sales in September if price...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
ADVERTISEMENT
|