Based on the graphical method for aggregate planning, the comparison for the three options are as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Based on the graphical method for aggregate planning, the comparison for the three options are as follows: Comparison Table Level Strategy-P1 Level Strategy-P2 Chase Strategy - P3 Cost items Inventory Carrying $22,400.00 $46,370.00 $220,000.00 $6,800.00 $21,500.00 $216.650.00 $0.00 Reg Labour $216,650.00 $0.00 Overtime Labour Hiring and Training Layoff Subcontracting Total $0.00 $0.00 $0.00 $0.00 $12,000.00 $4,800.00 $0.00 $273,170.00 $56,000.00 $295,050.00 $0.00 $254,950.00 Level Strategy 1 is based on constant workforce with no overtime or idle time, no safety stock, no lead time issues and no subcontractors. The assumption for inventory is that beginning inventory is zero. Level strategy 2 is based on constant workforce with no overtime or idle time, no safety stock, no lead time issues, and subcontractors will be used to meet demand. The assumption for inventory is that the beginning inventory is zero. Chase Strategy is based on varying the workforce size by hiring and laying off the workforce to meet demand. The assumption for inventory is that the beginning inventory is zero. The comparison table is based on the following forecasts and cost information. Cost Information Information Layoff costs Hiring and Training Avg Pay Rate Overtime Pay Rate Subcontracting cost per unit Inventory carrying cost Labour hours to produce a unit Costs $600 per unit $400 per unit $15 per hour $20 per hour (above 9 hours per day) $25 per hour $10 per unit per month 1.5 hour per unit Forecast Month Forecasted Demand Production days per month Jun 1105 22 July Aug 1279 24 1480 24 1990 22 Sep Oct 2241 24 Nov 1985 24 a.) Identify 5 mistakes in the comparison table. For each mistake, explain why is wrong and what is the correct value? (2 marks for each correctly identified error and the correct answer - total 10 marks) b.) Create a new comparison table with all the correct values. Justify the final comparison table with proof. (10 marks) Based on the graphical method for aggregate planning, the comparison for the three options are as follows: Comparison Table Level Strategy-P1 Level Strategy-P2 Chase Strategy - P3 Cost items Inventory Carrying $22,400.00 $46,370.00 $220,000.00 $6,800.00 $21,500.00 $216.650.00 $0.00 Reg Labour $216,650.00 $0.00 Overtime Labour Hiring and Training Layoff Subcontracting Total $0.00 $0.00 $0.00 $0.00 $12,000.00 $4,800.00 $0.00 $273,170.00 $56,000.00 $295,050.00 $0.00 $254,950.00 Level Strategy 1 is based on constant workforce with no overtime or idle time, no safety stock, no lead time issues and no subcontractors. The assumption for inventory is that beginning inventory is zero. Level strategy 2 is based on constant workforce with no overtime or idle time, no safety stock, no lead time issues, and subcontractors will be used to meet demand. The assumption for inventory is that the beginning inventory is zero. Chase Strategy is based on varying the workforce size by hiring and laying off the workforce to meet demand. The assumption for inventory is that the beginning inventory is zero. The comparison table is based on the following forecasts and cost information. Cost Information Information Layoff costs Hiring and Training Avg Pay Rate Overtime Pay Rate Subcontracting cost per unit Inventory carrying cost Labour hours to produce a unit Costs $600 per unit $400 per unit $15 per hour $20 per hour (above 9 hours per day) $25 per hour $10 per unit per month 1.5 hour per unit Forecast Month Forecasted Demand Production days per month Jun 1105 22 July Aug 1279 24 1480 24 1990 22 Sep Oct 2241 24 Nov 1985 24 a.) Identify 5 mistakes in the comparison table. For each mistake, explain why is wrong and what is the correct value? (2 marks for each correctly identified error and the correct answer - total 10 marks) b.) Create a new comparison table with all the correct values. Justify the final comparison table with proof. (10 marks)
Expert Answer:
Answer rating: 100% (QA)
a Level 1 strategy Days per month Hours worked Units produced inventory inventory carrying cost Reg labor cost Jun 22 198 132 132000 297000 July 24 21... View the full answer
Related Book For
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
Posted Date:
Students also viewed these mathematics questions
-
A certain type of machine will be used to produce three products: A, B, and C. Sales forecasts for these products are: 52,000, 65,000, and 70,000 units per year, respectively. Production rates for...
-
The dc motor of Problem 7.25 will be used to drive a load which requires a power of 0.75 W at a speed of 8750 r/min. Calculate the armature voltage which must be applied to achieve this operating...
-
In this exercise, molecular model kits will be used to give the student a better visual understanding of the three-dimensional nature and spatial relationships that occur in organic molecules. These...
-
Problem 1: The three velocities shown would indicate that the body is not rigid. Given that the body is known to be rigid, one of the three velocities is clearly incorrect. Draw all lines and take...
-
Congress has the power to tax income "from whatever source derived." Do you believe that this allows Congress the discretion to tax municipal bond interest (or other tax-exempt income) earned...
-
After working in software development with a major food company for 12 years, you are becoming impatient with corporate red tape (regulations and routines). You have an idea for a new snack product...
-
The press consists of two rigid heads that are held together by the two A-36 steel 1/2 -in.-diameter rods. A 6061-T6 solid aluminum cylinder is placed in the press and the screw is adjusted so that...
-
Following is Crash Zone Corporations balance sheet at the end of 2013 and its cash flow statement for 2014. Crash zone manufactures safety equipment for race cars. Balance Sheet as of December 31,...
-
Write a javascript program to display the grade of a student 1) Text 1-Student Name 2) Text 2-Student Id 3) Text 3 - Mark 4) Button - When you click the button display the grade in Paragraph (apply...
-
Detailed process descriptions of DFD level 1 (or lower level) in structured English: Each team member must develop at least 2 process descriptions for his/her level 1 processes (or lower level as...
-
Demonstrate customer service strategies to meet the needs of internal and external customers.
-
What is a good example of Strategy Implementation - including timeline for a psychiatric hospital that is planning to add an additional service?
-
What needs does your product net hubb satisfy and what kind of consumer products do it sell?
-
Evidence-based practices are vital to providing consumers with the most current interventions that have shown success in recovery. What should be the role of "practice wisdom" in providing services...
-
To whom would we articulate the key features of critical and creative thinking concepts and models and why would we do this?
-
TABLE 1: Fill out the table (9 Points) Ticket Quantity demanded Price Quantity Supplied 16 5880 4450 19 5280 5280 22 4680 6119 25 4080 6953 28 3480 7787 31 2880 8622 34 2280 9456 Elasticity of Demand...
-
What is a lobbyist in US? How did this term emerge?
-
Which U.S. government body has the legal power to determine generally accepted accounting principles?
-
Would a firm with a relatively long operating cycle tend to charge a higher markup on its inventory cost than a firm with a short operating cycle? Discuss.
-
Multiple-choice questions: a. Which of the following is a characteristic of information provided by external financial reports? 1. The information is exact and not subject to change. 2. The...
-
When randomly selecting a day of the week, it is certain that you will select a day containing the letter y, so P(y) = 1. For Exercises 510, decide whether the statement makes sense (or is clearly...
-
Use subjective judgment to estimate the probability that the next time you ride an elevator, it gets stuck between floors.
-
Because it is impossible for Thanksgiving to fall on Tuesday, the probability of Thanksgiving falling on Tuesday is 0. For Exercises 510, decide whether the statement makes sense (or is clearly true)...
Study smarter with the SolutionInn App