Questions and Answers of Introduction Materials Management

If the opening backlog is 450 units, forecast demand is 700 units, and production is 800 units, what will be the ending backlog?
Because of its labor contract, a company must hire enough labor for 100 units of production per week on one shift or 200 units per week on two shifts. It cannot hire, lay off, or assign overtime.
A company wants to develop a level production plan for a family of products. The opening inventory is 500 units, and a decrease to 250 units is expected by the end of the plan. The demand for each of
A company wants to develop a level production plan for a family of products. The opening inventory is 100 units, and an increase to 130 units is expected by the end of the plan. The demand for each
If the cost of carrying inventory is $60 per unit per period and stockout cost $500 per unit, what will be the cost of the plan developed in problem 2.9a? What will be the cost of the plan developed
A company wants to develop a level production plan. The beginning inventory is zero. Demand for the next four periods is given in what follows.a. What production rate per period will give a zero
A company wants to develop a level production plan for a family of products. The opening inventory is 550 units, and a decrease to 200 units is expected by the end of the plan. The demand for each of
A company wants to develop a level production plan for a family of products. The opening inventory is 100 units, and an increase to 150 units is expected by the end of the plan. The demand for each
A company plans to produce 25,000 units in a 3-month period. The months have 22, 21, and 20 working days, respectively. What should the average daily production be?
A company wants to produce 480 units over the next three months at a uniform rate. The months have 19, 20, and 21 working days, respectively. On the average, how much should the company produce each
If the opening inventory is 400 units, demand is 900 units, and production is 700 units, what will be the ending inventory?
Amalgamated Fenderdenter’s sales are $10 million. The company spends $3.5 million for purchase of direct materials and $2.5 million for direct labor; overhead is $3.5 million and profit is
On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold of $30 million. Assuming that the company works 50 weeks a year:a. What is the dollar value of the
On the average, a firm has an 8-week lead time for work-in-process, and annual cost of goods sold is $12 million. Assuming that the company works 50 weeks a year:a. What is the dollar value of the
In problem 1.1, how much would sales have to increase to provide the same increase in profits?In ProblemIf the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is
If the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is 10% of sales, what would be the improvement in profit if, through better planning and control, the cost

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