Question
In: Operations Management
Beginning Workers 15 Beginning inventory = 50 Productive hours/worker/day = 7 Units per worker per month...
| Beginning Workers | 15 | ||
| Beginning inventory = | 50 | ||
| Productive hours/worker/day = | 7 | ||
| Units per worker per month | 40 | ||
| Paid hours/worker/day = | 8 | ||
| Working days in month | 20 | ||
| Materials = | $1,800 |
| Holding costs = | $550 |
| Marginal cost of backorder = | $800 |
| Hiring and training cost = | $500 |
| Layoff costs = | $800 |
| Straight time labor cost/hr. | $30 |
| Chase Strategy | Jan | Feb | Mar | Apr | May | June |
| Demand | 575 | 715 | 675 | 985 | 1,125 | 575 |
| Beginning Inv. | 50 | 35 | 0 | 5 | 20 | 15 |
| Net Requirements | 525 | 680 | 675 | 980 | 1,105 | 560 |
| Beginning Workers | 15 | 14 | 17 | 17 | 25 | 28 |
| Hired | 0 | 3 | 0 | 8 | 3 | 0 |
| Fired | 1 | 0 | 0 | 0 | 0 | 14 |
| Req. Workers | 14 | 17 | 17 | 25 | 28 | 14 |
| Production | 560 | 680 | 680 | 1,000 | 1,120 | 560 |
| Ending Inventory | 35 | 0 | 5 | 20 | 15 | 0 |
| Material Cost | ||||||
| Backorder Cost | ||||||
| Labor Cost |
What is the total backorder cost?
Group of answer choices
1. Less than 0
2. Equal to 0
3. Greater than 0
Solutions
Expert Solution
In the given plan, Ending inventory of each period is positive, which means there is no backorder. Therefore,
Total backorder cost = Total backorder quantity * Marginal cost of backorder
= 0*800
= $ 0
ANSWER: 2. Equal to 0
----------------------------------------
EXCEL FORMULA:
keosha answered 1 year agoRelated Solutions
Beginning Workers 100 Beginning inventory = 2000 Productive hours/worker/day = 6.75 Units per worker per month...
Beginning Workers
100
Beginning inventory =
2000
Productive hours/worker/day =
6.75
Units per worker per month
100
Level Strategy
Jan
Feb
Mar
Apr
May
June
Demand
15,200
14,250
7,000
10,300
13,650
17,000
Beginning Inv.
Net Requirements
Beginning Workers
Hired
Fired
Req. Workers
Production
Ending Inventory
Using a level strategy and the following data, what is the
production level for each month?
A. 13,200
B. 14,000
C. 12,900
D. 12600
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Beginning Inventory # of units Cost per unit Total Beginning Inventory 15 $10 $150 Jan 1....
Beginning Inventory
# of units
Cost per unit
Total
Beginning Inventory
15
$10
$150
Jan 1. Purchase
15
$11
$165
Jan 10. Purchase
15
$12
$180
Total
45
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$380
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$395
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