11) Wash Manufacturing produces inertial dampening coils. Their forecast for the next year is 1250 units. The storage cost per unit for produced coils is $0.60 per year. The ordering cost for each order is $10. The company wishes to solve for the optimum number of units per order, with the production of the coils being made to order. Computethe optimum order quantity (two decimal places):A.12.25

B.125.65C.263.52D.204.12E.144.34Answer: D12) The objective of aggregate planning is to meet demand while __________ over the planning period.13) A firm practices the pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to be 900, 700, 1000, and 1000. Hiring cost is $20 per unit, and firing cost is $5 per unit. Over the next year, the sum of hiring and layoff costs will be14) A manufacturer of industrial seafood processing equipment wants you to develop an aggregate plan for the four quarters of the upcoming year using the following data on demand and capacity. Back orders are not allowed. How much (if any) regular time capacity goes unused? QuarterUnitsRegular TimeOver-timeSub-contractRegular time cost$1.25/unit120040080100Overtime cost $1.50/unit275040080100Subcontracting cost 2.00/unit31200800160100Carrying cost $0.50/unit/quarter445040080100Initial inventory250 units

The minimum cost solution is $3,360. Forty units of regular time capacity went unused in period 1. Production QuantitiesPeriod 1Period 2Period 3Period 4Excess CapacityRow TotalBeginning inventory20050000250Period 1 reg time0220140040400Period 1 overtime00008080Period 1 subcontracting0000100100Period 2 reg time0400000400Period 2 overtime08000080Period 2 subcontracting0000100100Period 3 reg time0080000800Period 3 overtime0016000160Period 3 subcontracting0010000100Period 4 reg time0004000400Period 4 overtime000503080Period 4 subcontracting0000100100Column Total20075012004504503050

Total Cost3360 15) Osprey Machine Works has the following demand requirements and other data for the upcoming four quarters.QuarterDemandPrevious quarter's output2500 units12300Beginning inventory200 units22400Stockout (backorder) cost$50 per unit32600Inventory holding cost$10 per unit at end of quarter42100Hiring workers$4 per unitLaying off workers$8 per unitUnit cost$30 per unitOvertime$10 extra per unitThe firm is pursuing a pure level aggregate plan over the coming year. How much are the layoffs cost associated with this plan?A.$0B.$1,200C.$1,600D.$2,000E.None of the aboveAnswer: CRequirements total 9400 units, of which 200 are already in stock. A level rate of 2300 units will meet demand while using up beginning inventory. Costs associated with this plan are:Cost elementDetailExtensionLayoffs$8 x 200 units for the reduction from 2500 units to 2300 units$1,600HoldingThere will be 200 units ending inventory at end of Q1 and 100 units at end of Q2, creating an inventory holding cost of $10 x 300 units$3,000StockoutIn Q3, 200 units go unfilled until Q4, for a

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- Spring '08
- BENSON
- Period, Stockout