Question

In: Accounting

A company manufactures a unique type of component (STC) used in injection molding of medium-sized medical...

A company manufactures a unique type of component (STC) used in injection molding of medium-sized medical devices. By the start of week 6, a hundred STC must be ready to deliver. Each STC requires two sub-component A and four sub-component B. The lead time of STC is one week, and there are ten units on-hand. Sub-component A has a lead time of two weeks, and there is in-hand thirty units. Last, there are fifty units of Sub-component B, which has a lead time of one week. If at the beginning of week 6, one hundred STC is required, in what week should an order for sub-component B and sub-component A be released?

Solutions

Expert Solution

Answer:

By the start of week 6, a hundred STC must be ready to deliver.

The lead time of STC is one week, and there are ten units on-hand.

Hence number units of STC need to be produced = 100 -10 = 90 units

Subcomponent A and B are required by start of week 5.

Subcomponent A:

Each STC requires two sub-component A and four sub-component B.

Hence quantity of Sub-component A required by start of week 5 = 90 * 2= 180 units

Sub-component A has a lead time of two weeks, and in-hand quantity is thirty units.

Hence number of subcomponent A required to be ordered = 180 units -30 units = 150 units.

Since Sub-component A has a lead time of two weeks, the order for the same has to be placed by start of week 3.

Subcomponent B:

There are fifty units of Sub-component B, which has a lead time of one week

Quantity of subcomponent B required by start of week 5 = 90 * 4= 360 units

Number of subcomponent B required to be ordered = 360 units -50 units = 310 units.

As  Sub-component B, has a lead time of one week, the order for Sub-component B, has to be placed by start of week 4.

The order for sub-component B has to be released by start of week 4 and the order for sub-component A has to be released by start of week 3.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Jackson Company Produces plastic that is used for injection molding applications such as gears for small...
Jackson Company Produces plastic that is used for injection molding applications such as gears for small motors. In 2016, the first year of operations, Jackson produced 4,000 tons of plastic and sold 3,500 tons. In 2017, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,000, variable manufacturing costs were 15% of the sales price of units produced, variable selling expenses were 10% of the selling price of units sold, fixed manufacturing...
Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors....
Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2016, the first year of operations, Jackson produced 4,100 tons of plastic and sold 3,075 tons. In 2017, the production and sales results were exactly reversed. In each year, the selling price per ton was $ 2,000, variable manufacturing costs were 16% of the sales price of units produced, variable selling expenses were 10% of the selling price of units sold, fixed manufacturing...
Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors....
Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2019, the first year of operations, Jackson produced 5,700 tons of plastic and sold 4,275 tons. In 2020, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,000, variable manufacturing costs were 18% of the sales price of units produced, variable selling expenses were 9% of the selling price of units sold, fixed manufacturing costs...
Auto Parts, Inc. is medium-sized company that manufactures auto parts in Buffalo, New York. The company...
Auto Parts, Inc. is medium-sized company that manufactures auto parts in Buffalo, New York. The company currently loses $30,000 per month. The owner of the company is evaluating whether she should shut down the factory. She thinks that the factory should continue to operate until the economic environment improves and buyer for the factory can be identified. The logic of the owner is that her company has already invested millions of dollars in the factory over the years. The monthly...
Hobart Company manufactures attaché cases and suitcases. It has five manufacturing departments. The Molding, Component, and...
Hobart Company manufactures attaché cases and suitcases. It has five manufacturing departments. The Molding, Component, and Assembly departments convert raw materials into finished goods; hence, they are treated as operating departments. The Power and Maintenance departments are treated as service departments because they support the three operating departments. Hobart has always used a plantwide predetermined overhead rate with direct labor-hours as the allocation base for product costing purposes. The overhead rate is computed by dividing the company’s total estimated overhead...
Two injection molding machines are used to make the same part. The part warpage from the...
Two injection molding machines are used to make the same part. The part warpage from the two machines have known standard deviations of ?1 = 0.012 and ?2 = 0.018. The engineering team believes that the two machines have the same mean warpages. 12 samples from each machine are collected, and the sample means are calculated at ?̅1 = 0.036 and ?̅2 = 0.034. (a) Is the engineering team correct? Use the appropriate hypothesis test with α = 0.05 to...
Production Scheduling Your company manufactures printer cases on two different injection molding machines. The M-100 has...
Production Scheduling Your company manufactures printer cases on two different injection molding machines. The M-100 has a capacity of 25 cases per hour, and the M-200 has a capacity of 40 cases per hour. Both machines use the same chemicals in the manufacturing process; the M-100 uses 40 pounds of material per hour, and the M-200 uses 50 pounds per hour. Your client has asked you to produce as many cases as possible next week, and they will pay $18...
The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division.
The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $29 per unit. Variable costs for the casing are $16 per unit and fixed cost is $4 per unit. Cotwold executives would like for the Molding Division to transfer 12,000 units to the Assembly Division at a price of $20 per unit. Assume that the Molding Division has enough excess capacity to accommodate the request.   Required:1. ...
Rubber stuff is medium-sized business which manufactures rubber mats for cars and for households. There are...
Rubber stuff is medium-sized business which manufactures rubber mats for cars and for households. There are some 15 workers in the factory, including the office staff and a manager. The workers belong to various unions according to the type of work they do. The workers on the factory floor are employed under an enterprise agreement which their unions negotiated some 18 months previously. In the press there have been some reports of dangerous fumes that may be emitted from rubber...
The East Division of Kensic Company manufactures a vital component that is used in one of...
The East Division of Kensic Company manufactures a vital component that is used in one of Kensic’s major product lines. The East Division has been experiencing some difficulty in coordinating activities between its various departments, which has resulted in some shortages of the component at critical times. To overcome the shortages, the manager of East Division has decided to initiate a monthly budgeting system that is integrated between departments. The first budget is to be for the second quarter of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT