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 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
1. During January, AA sold 20 units at $30 per unit.
Under FIFO, how much is the Gross
Profit?
$365
$380
$390
$395
2. During January, AA sold 20 units at $30 per unit
Under the Weighted Average Method, how much is the
Gross Profit?.
$365
$380
$395
$400
3. During January,...
At the beginning of November, Donkey Inc.'s inventory consists of 50 units with a cost per...
At the beginning of November, Donkey Inc.'s inventory consists
of 50 units with a cost per unit of $100. The following
transactions occur during the month of November.
November 2 Purchase 80 units of inventory on account from Kong Inc.
for $110 per unit, terms 2/10, n/30.
November 3 Pay freight charges related to the November 2 purchase,
$240.
November 9 Return 20 defective units from the November 2 purchase
and receive credit.
November 11 Pay Kong Inc. in full....
At the beginning of November, Donkey Inc.'s inventory consists of 50 units with a cost per...
At the beginning of November, Donkey Inc.'s inventory consists of
50 units with a cost per unit of $100. The following transactions
occur during the month of November.
November 2 Purchase 80 units of inventory on account from Kong Inc.
for $110 per unit, terms 2/10, n/30.
November 3 Pay freight charges related to the November 2 purchase,
$240.
November 9 Return 20 defective units from the November 2 purchase
and receive credit.
November 11 Pay Kong Inc. in full....
If the average inventory is 4,000 units and the number of units ordered per month is...
If the average inventory is 4,000 units and the number of units
ordered per month is 15,000, compute the number of orders per
month. Round to two decimals.
Loanstar had 50 units in beginning inventory before starting 1,000 units and completing 850 units. The...
Loanstar had 50 units in beginning inventory before starting
1,000 units and completing 850 units. The beginning work in process
inventory consisted of $3,000 in materials and $5,000 in conversion
costs before $8,550 of materials and $12,670 of conversion costs
were added during the month. The ending WIP inventory was 100%
complete with regard to materials and 40% complete with regard to
conversion costs.
Use the above information to complete a production cost report.
Enter all amount as positive values....
World Company expects to operate at 80% of its productive capacity of 50,000 units per month....
World Company expects to operate at 80% of its productive
capacity of 50,000 units per month. At this planned level, the
company expects to use 24,400 standard hours of direct labor.
Overhead is allocated to products using a predetermined standard
rate of 0.610 direct labor hours per unit. At the 80% capacity
level, the total budgeted cost includes $53,680 fixed overhead cost
and $273,280 variable overhead cost. In the current month, the
company incurred $320,000 actual overhead and 21,400 actual...
The workers at Olisur Olive Oil Factory, work four days a week, 15 hours a day....
The workers at Olisur Olive Oil Factory, work four days a week,
15 hours a day. Each day of the week, at least the following
numbers of workers are needed: on weekdays 105 workers per day; on
weekends 45 workers per day. There are 165 workers in the factory.
Formulate a linear programming model that will reveal a schedule
for the workers to maximize the sum of their consecutive days off
(define decision variables; indicate objective function,
constraints, and sign...
A company has beginning inventory of 15 units at a cost of $12 each on October...
A company has beginning inventory of 15 units at a cost of $12
each on October 1. On October 5, it purchases 10 units at $13 per
unit. On October 12 it purchases 20 units at $14 per unit. On
October 15, it sells 30 units. Using the FIFO periodic
inventory method, what is the value of the inventory at October 15
after the sale?
3. A new training program says that it can improve worker productivity by 50 units per...
3. A new training program says that it can improve worker
productivity by 50 units per hour. A test of 100 employees trained
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Testing at a .05 level of significance what can we conclude?
Hint two tailed test
Assume your organization has the following inventory changes during the year. Beginning inventory - 15 units...
Assume your organization has the following inventory changes
during the year.
Beginning inventory - 15 units valued at $10,000 each
February purchases - 13 units at $11,500 each
June purchases - 20 units at $12,000 each
Total units used - 42
calculate the value of then ending inventory and the value of
the inventory used for the year, using both the FIFO and the LIFO
method of cost flow
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