Dineshbhai The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:1,400May1,600June1,800July1,800AugustJanuaryFebruaryMarchApril2,2002,2001,8001,400Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $25 per unitper month. Ignore any idle-time costs. The plan is called plan C.Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels.Conduct your analysis for January through August.The average monthly demand requirement = units. (Enter your response as a whole number.)

Answered: The president of Hill Enterprises,…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March 1,600 1,700 1,800 April 1,700 Month 0 December 1 January 2 February 3 March Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $70 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. Evaluate the following plans D and E. 4 April 6 May 6 June Plan D: Keep the current workforce stable at producing 1,600 units per month. In addition to the regular production, another 20% of the normal production units can be produced in overtime at an additional cost of $55 per unit. A warehouse now constrains the maximum allowable inventory on hand to 600 units or less. Note: Do not produce in overtime if production or inventory are adequate to cover demand. 7 July 8 August Demand 1,500 1,700 1,800 1,700 2,100 2,100 1,800 1,500…
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. If the opening backlog is 450 units, forecast demand is 700 units, and production is800 units, what will be the ending backlog?
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: alculator DEPREFERESSESES Cara be Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $65 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs Evaluate the following plan. This exercise contains only Plan E. Plan E: Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of the demand. Subcontract cost is $75 per unit. mummill M Pla $100433443 January February March April MESS Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August Ask my instructor 1,400 1,600 1,800 1,800 Demand 1.400 1,600 1,800 1,800 2,200 2,100 1,800 1.400 May June July August Production (Units) 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 2,200 2.100 1.800 1,400 S Plan E Subcontract…
3) AGGREGATE PLANNING Mark Tuan, Operations Manager at GOT7 Furniture, has received the following estimates of demand requirements: January 1,100 February 1,200 March 1,400 April 1,800 May 1,800 June 1,600 Assuming stockout costs for lost sales of RM100 per unit, inventory carrying costs of RM25 per unit per month, and a zero beginning and ending inventory. Analyze the extra cost if the company vary the workforce, which performs at a current production level of 1,300 units per month. The cost of hiring additional workers is RM3,000 per 100 units produced. The cost of layoffs is RM6,000 per 100 units cut back.
The president of Hill Enterprises, Terri Hill, projectsthe firm’s aggregate demand requirements over the next 8 monthsas follows:Jan. 1,400 May 2,200Feb. 1,600 June 2,200Mar. 1,800 July 1,800Apr. 1,800 Aug. 1,800 Her operations manager is considering a new plan, whichbegins in January with 200 units on hand. Stockout cost of lostsales is $100 per unit. Inventory holding cost is $20 per unit permonth. Ignore any idle-time costs. The plan is called plan A.Plan A: Vary the workforce level to execute a strategy thatproduces the quantity demanded in the prior month. TheDecember demand and rate of production are both 1,600 unitsper month. The cost of hiring additional workers is $5,000 per100 units. The cost of laying off workers is $7,500 per 100 units.Evaluate this plan.
WSS company makes weatherproof surveillance systems for parking lots. Demand estimates for the next four quarters are 25, 9, 13, and 17 units. Prepare an aggregate plan that uses inventory, regular time, and over time, and backorders. Subcontracting is not allowed. The regular time capacity is 15 units for quarters 1 and 2, 18 units for quarters 3 and 4. Overtime capacity is 3 units per quarter. The regular time cost is $2000 per unit, while the overtime cost is $3000 per unit. Backorder costs $300 per unit per quarter; inventory holding costs $100 per unit per quarter. The beginning inventory is zero. How many total units will be produced in quarter 1 for delivery in quarter 1? How many units in total will be used to fill back orders over the four quarters? What is the cost to produce one unit in Quarter 4 using overtime to fill a back order in quarter one?
The total cost, excluding normal time labor costs, for Plan A = $. (Enter your response as a whole number.) Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $30 per unit produced. The cost of layoffs is $65 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1000 in August requires a layoff (and related costs) of 300 units in August). Month 1 2 3 September 4 October July August 5 November 6 December Demand 1000 1200 1400 1800 1800 1800 Hire Production (Units) The total hiring cost = $ The total layoff cost = $ The total inventory carrying The total stockout cost = $ The total cost, excluding normal time labor costs, for Plan B = (Enter your response as a whole number.) (Enter your response as a whole number.) cost = $ (Enter your response as a whole number.) Layoff…
Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?

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