Leave no cells blank be certain to enter 0 wherever required Omit the sign in

Leave no cells blank be certain to enter 0 wherever

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indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Period 1 2 3 4 5 6 7 8 Forecast 120 135 140 120 125 125 140 135 Output Regular 130 130 130 130 130 130 130 130 Overtime Subcontract Output - Forecast 10 -5 -10 10 5 5 -10 -5 Inventory Beginning 0 10 5 0 5 10 15 5 Ending 10 5 0 5 10 15 5 0 Average 5 7.5 2.5 2.5 7.5 12.5 10 2.5 Backlog 0 0 5 0 0 0 0 0 Costs: Output Regular $ 7,800 7,800 7,800 7,800 7,800 7,800 7,800 7,800 Overtime Subcontract Inventory 10 15 5 5 15 25 20 5 Backorder 0 0 450 0 0 0 0 0 Total $ 7,810 7,815 8,255 7,805 7,815 7,825 7,820 7,805 Explanation: a. Cost: Regular Period (1) = 120 × 60 = 7,200 Period (2 & 3) = 130 × 60 = 7,800 Period (4) = 120 × 60 = 7,200 Period (5 & 6) = 125 × 60 = 7,500 Period (7 & 8) = 130 × 60 = 7,800 Overtime Period (1) = 0 × 90 = 0
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2. award: 10 out of 10.00 points Period (2) = 5 × 90 = 450 Period (3) = 10 × 90 = 900 Period (4 to 6) = 0 × 90 = 0 Period (7) = 10 × 90 = 900 Period (8) = 5 × 90 = 450 b. Regular Period (1 to 8) = 130 × 60 = 7,800 Inventory Period (1) = 5.0 × 2 = 10 Period (2) = 7.5 × 2 = 15 Period (3 & 4) = 2.5 × 2 = 5 Period (5) = 7.5 × 2 = 15 Period (6) = 12.5 × 2 = 25 Period (7) = 10.0 × 2 = 20 Period (8) = 2.5 × 2 = 5 Backorder Period (1 to 2) = 0 × 90 = 0 Period (3) = 5 × 90 = 450 Period (4 to 8) = 0 × 90 = 0 Problem 11-6 Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts of cloth. The figures are in hundreds of bolts. The department has a normal capacity of 275(00) bolts per month, except for the seventh month, when capacity will be 250(00) bolts. Normal output has a cost of $40 per hundred bolts. Workers can be assigned to other jobs if production is less than normal. The beginning inventory is zero bolts. Month 1 2 3 4 5 6 7 Total Forecast 250 300 250 300 280 275 270 1,925 a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is $60 per hundred bolts. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Period 1 2 3 4 5 6 7 Forecast 250 300 250 300 280 275 270 Output Regular 250 275 250 275 275 275 250 1 Overtime 0 25 0 25 5 0 20 Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular $ 10,000 11,000 10,000 11,000 11,000 11,000 10,000 $ 74 Overtime 0 1,500 0 1,500 300 0 1,200 4 Subcontract Inventory Backorder Total $ 10,000 12,500 10,000 12,500 11,300 11,000 11,200 $ 78 b. Would the total cost be less with regular production with no overtime, but using a subcontractor to handle the excess above normal capacity at a cost of $50 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $2 per hundred bolts. (Round your Average values to 1 decimal place. Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Period 1 2 3 4 5 6 7 Forecast 250 300 250 300 280 275 270 Output Regular 275 275 275 275 275 275 250 1 Overtime 0 0 0 0 0 0 0 Subcontract 0 0 0 0 5 0 20 Output - Forecast 25 -25 25 -25 0 0 0 Inventory Beginning 0 25 0 25 0 0 0 Ending 25 0 25 0 0 0 0 Average 12.5 12.5 12.5 12.5 0 0 0 Backlog 0 0 0 0 0 0 0 Costs: Regular $ 11,000 11,000 11,000 11,000 11,000 11,000 10,000 $ 76 Overtime 0 0 0 0 0 0 0
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Subcontract 0 0 0 0 250 0 1,000 1 Inventory 25 25 25 25 0 0 0 Backorder 0 0 0 0 0 0 0 Total $ 11,025 11,025 11,025 11,025 11,250 11,000 11,000 $ 77 Worksheet Learning Objective: 11-03 Describe some of the strategies that can be used for meeting uneven demand. Problem 11-6 Learning Objective: 11-05 Prepare aggregate plans and compute their costs.
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