Dade Industries makes syringes. The demand for the next four quarters and the cost data are...

Dade Industries makes syringes. The demand for the next four quarters and the cost data are given below. Each employee can produce 100 syringes per quarter. Because of union contract no overtime is permissible. The current work force is 18 workers.

Quarter	1	2	3	4
Demand	1500	2000	1800	2500

Hiring costs = $1000/ worker; Layoff costs = $ 700/worker;

Regular time wages = $10000/worker/quarter;

Inventory holding costs = $2.00/unit/quarter

For a level strategy in this manufacturing example:

Which decision variable is maintained constant in the planning horizon? What factor varies?

What information helps you decide the production rate needed?

What is the production rate?

Calculate the workers needed (round up to a full worker).

Calculate the anticipation inventory.

	Quarter
	1	2	3	4
Beginning Inventory
Production Rate
Forecasted demand	1500	2000	1800	2500
Ending Inventory
Planned Workforce
Planned Hires
Planned Layoffs

Calculate the cost of the above strategy.

Solutions

Expert Solution

Below is the screenshot of the formula applied -

Below is the screenshot of the result -

keosha answered 1 year ago

Next > < Previous

Related Solutions

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters....

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 800 units 1 700 Beginning inventory 0 units 2 900 Stockout cost $100 per unit 3 1200 Inventory holding cost $10 per unit at end of quarter 4 600 Hiring workers $20 per unit Laying off workers $40 per unit Subcontracting cost $200 per unit Unit cost $100 per unit Which of the following production plans is better: Plan...

The budgeted sales for the next four quarters are £192,000, £288,000, £288,000 and £336,000 respectively. It...

The budgeted sales for the next four quarters are £192,000, £288,000, £288,000 and £336,000 respectively. It is estimated that sales will be paid for as follows:-75% of the total will be paid in the quarter that the sales were made. Of the balance 50% will be paid in the quarter after the sale was made. The remaining 50% will be paid in the quarter after this. The amount of cash received in the third quarter will be:

The following data are results from a studying the effects of using four quarters or a...

The following data are results from a studying the effects of using four quarters or a $1 bill on keeping the money or spending it. 43 students were given the denominations. Purchased Gum Kept the Money Total Given Four Quarters 27 16 Given a $1 Bill 12 34 Total 43 (a) What are the two row totals? (b) What are the two column totals? (c) Find the probability (as a fraction and a decimal rounded to three places) of randomly...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $ 190 $ 210 $ 230 $ 260 Sales for the first quarter of the year after this one are projected at $205 million. Accounts receivable at the beginning of the year were $81 million. Wildcat has a 45-day collection period. Wildcat’s purchases from suppliers in a quarter are equal to 50 percent of the next quarter’s forecast sales, and suppliers...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $ 145 $ 165 $ 185 $ 215 Sales for the first quarter of the year after this one are projected at $160 million. Accounts receivable at the beginning of the year were $63 million. Wildcat has a 45-day collection period. Wildcat’s purchases from suppliers in a quarter are equal to 45 percent of the next quarter’s forecasted sales, and...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $ 105 $ 125 $ 145 $ 175 Sales for the first quarter of the following year are projected at $120 million. Accounts receivable at the beginning of the year were $47 million. Wildcat has a 45-day collection period. Wildcat’s purchases from suppliers in a quarter are equal to 45 percent of the next quarter’s forecast sales, and suppliers are normally...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $ 180 $ 200 $ 220 $ 250 Sales for the first quarter of the year after this one are projected at $195 million. Accounts receivable at the beginning of the year were $77 million. Wildcat has a 45-day collection period. Wildcat’s purchases from suppliers in a quarter are equal to 50 percent of the next quarter’s forecasted sales, and suppliers...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $ 175 $ 195 $ 215 $ 245 Sales for the first quarter of the year after this one are projected at $190 million. Accounts receivable at the beginning of the year were $75 million. Wildcat has a 45-day collection period. Wildcat’s purchases from suppliers in a quarter are equal to 50 percent of the next quarter’s forecast sales, and suppliers...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $ 170 $ 190 $ 210 $ 240 Sales for the first quarter of the year after this one are projected at $185 million. Accounts receivable at the beginning of the year were $73 million. Wildcat has a 45-day collection period. Wildcat’s purchases from suppliers in a quarter are equal to 45 percent of the next quarter’s forecasted sales, and...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2...

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $ 100 $ 120 $ 140 $ 170 Sales for the first quarter of the year after this one are projected at $115 million. Accounts receivable at the beginning of the year were $45 million. Wildcat has a 45-day collection period. Wildcat’s purchases from suppliers in a quarter are equal to 40 percent of the next quarter’s forecast sales, and suppliers...

Subjects