Call/WhatsApp/Text: +44 20 3289 5183

Question: A company produces to a seasonal demand, with the forecast for the next 12 months as given below. Month Demand January 600 February 700 March 800 April 700

25 Oct 2022,8:59 PM

 

A company produces to a seasonal demand, with the forecast for the next 12 months as given below.

Month Demand
January 600
February 700
March 800
April 700
May 600
June 500
July 600
August 700
September 800
October 900
November 700
December 600


The present labor force can produce 500 units per month. Each employee added can produce an additional 20 units per month and is paid $1000 per month. The cost of materials is $30 per unit. Overtime can be used at the usual premium of time and a half for labor up to a maximum of 10 percent per month. Inventory-carrying cost is $50 per unit per year. Changes in production level cost $100 per unit due to hiring, line changeover costs, and so forth. Assume 200 units of initial inventory. Extra capacity may be obtained by subcontracting at an additional cost of $15 per unit over and above the company's producing them itself on regular time.

Provide a detailed cost breakdown for using a level vs. a chase strategy to meet the increased demand.
Which strategy do you recommend?
How much savings would result from the plan you recommend?

Expert answer

 

This Question Hasn’t Been Answered Yet! Do You Want an Accurate, Detailed, and Original Answer for This Question?

 

Ask an expert

 

 

 

 

Stuck Looking For A Model Original Answer To This Or Any Other
Question?

Related Questions

A 32-year-old female presents to the ED with a chief complaint of fever, chills, nausea, vomiting, and vaginal discharge

Scenario 1: A 32-year-old female presents to the ED with a chief complaint of fever, chills, nausea, vomiting, and vaginal discharge. She states these symptoms started about 3 days ago, but she thought she had the flu. She has begun to have LLQ pain and notes bilateral lower back pain. She denies dysuria, foul-smelling urine, or frequency. States she is married and has sexual intercourse with her husband. PMH negative. Labs: CBC-WBC 18, Hgb 16, Hct 44, Plat 325, ­ Neuts & Lymphs, sed rate 46 mm/hr., C-reactive protein 67 mg/L CMP wnl Vital signs T 103.2 F Pulse 120 Resp 22 and PaO2 99% on room air. Cardio-respiratory exam ...
You work in the Department of Foreign Affairs and Trade of Australia. Your department will.....

Problem Description: You work in the Department of Foreign Affairs and Trade of Australia. Your department will be hosting a workshop on the Global Value Chains, challenges, and opportunities for Australia, with participants from academia, industry, government, and non-profit organizations. To prepare for this workshop, you plan to first write a report on GVCs by giving a relevant example. To appeal to the audience, you wish to focus on a GVC in which Australia participates, that is, Australian inputs are used to produce (deliver) final products (services). Your report should: Give an example of GVC which involves at least three ...
Critically examine the memorialisation or commemoration of an event said to be defining of a given society’s collective.......

  Select a relevant piece of artwork (i.e. documentary, exhibition, film) and/or artist and critically assess the artist’s/artwork’s contribution to understandings of how societies remember.   OR   Critically examine the memorialisation or commemoration of an event said to be defining of a given society’s collective or social memory, in which digital technologies/media/archives are seen as highly significant in the formation of remembrance.     DRAFT / STUDY TIPS: The Role of Digital Technologies in the Memorialization of Collective Memory: A Critical Examination Introduction Memorialization and commemoration are crucial aspects ...
You hold the HR directorship of a local company in Durham, which employs 100 workers

You hold the HR directorship of a local company in Durham, which employs 100 workers (all in a managerial position). The company usually offered an incremental pay rise of 3 per cent every year. It also offered some benefits such as health insurance, life insurance, and private pension plan. The cost of living and the high inflation are influencing the organisational revenue. You were asked to rethink the Employee Rewards including the pay rise and the benefit system and to consider withdrawing the private pension plan. Based on that information please answer the following:   1)    What external influences do ...

What Clients Say About Us

Copyright © 2012 - 2024 Apaxresearchers - All Rights Reserved.

WhatsApp us