Given the following forecast and cost information, Regular time cost $ 40.00 per unit determine the total cost of a plan that uses regular time Overtime cost $ 60.00 per unit production output of 600 units per month, overtime is subcontracting cost $ 80.00 per unit used when needed up to a maximum of 60 units per holding cost $ 10.00 per unit per month month, and subcontracting is used if additional units are needed to meet the forecast. Month Forecast 1 570 2 600 3 630 4 650 5 670 6 690 Totals

Given the following forecast and cost information, Regular time cost $ 40.00 per unit determine the total cost of a plan that uses regular time Overtime cost $ 60.00 per unit production output of 600 units per month, overtime is subcontracting cost $ 80.00 per unit used when needed up to a maximum of 60 units per holding cost $ 10.00 per unit per month month, and subcontracting is used if additional units are needed to meet the forecast. Month Forecast 1 570 2 600 3 630 4 650 5 670 6 690 Totals

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
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Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, washing, slicing, preserving, and finally packaging the prepared lettuce. Together, with help from vendors, they think they can adequately estimate demand, fixed costs, revenues, and variable cost per bag of lettuce. They think a largely manual process will have monthly fixed costs of $40,000 and variable costs of $2.00 per bag. A more mechanized process will have fixed costs of $72,000 per month with variable costs of $1.25 per bag. They expect to sell the shredded lettuce for $3.00 per bag. a) The break-even quantity in units for the manual process = enter your response here bags (round your response to the nearest whole number). b) The revenue…
Using the cut-and-try method for aggregate operations planning, as described in the textbook, we can calculate ending inventory and safety stock as a percent of forecast demand. If beginning inventory = 300 units, the production requirement in units of output = 1,350 units, demand forecast = 1,500 units, then ending inventory and percent safety stock? a) 450 & 30% b) 150 & 20% c) 300 & 20% d) 150 & 10% e) 200 & 10%
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