Question: A production manager needs to develop a production schedule to meet the following demand: period: 1 2 3 4 5 6 demand: 600 600 800

A production manager needs to develop a production schedule to meet the following demand: period: 1 2 3 4 5 6 demand: 600 600 800 1000 1200 600 Productions costs are as follows: (a) regular time: $3 per unit. (b) over-time: $5 per unit. (c) subcontract: $7 per unit. (d) Inventory carrying cost = $2 per unit per period (e) Back-order costs = $5 per unit per period. You have to meet all the demands. You start with no inventory at the beginning of the first period, and end with no inventory at the end of the sixth period.

Schedule C: Suppose the regular rate of production per period is 700. However, you are allowed to buy 200 units from a subcontractor during each of the periods 3, 4, and 5. Develop a production schedule to meet the demand.

(13) The average inventory for the second period is: (a) 50 (b) 100 (c) 150 (d) 200 (e) none of the above

(14) The average inventory for the fourth period is: (a) 50 (b) 100 (c) 150 (d) 200 (e) none of the above

(15) The inventory at the beginning of the fifth period is: (a) 100 (b) 200 (c) 250 (d) 300 (e) None of the above

(16) The total cost of buying items from the subcontractor for the all the six periods is: (a) $5400 (b) $2800 (c) $4200 (d) $3600 (e) None of the above

(17) The backlog for the fifth period is: (a) 50 (b) 100 (c) 150 (d) 200 (e) none of the above

(18) The total cost of meeting the demand is: (a) $17,400 (b) $18,900 (c) $19,600 (d) $19,200 (e) none of the above

Schedule D: Suppose the regular rate of production is 700 units per period. Further, you are allowed to produce 100 units during each of the periods 3,4, and 5 on an overtime basis, but the subcontractor has gone out of business. You can hire two temporary workers during the periods 3, 4, and 5. Each worker can produce 50 units per period at the regular cost. But it costs $200 to train a worker and check the quality of the product during each of the three periods.

(19) The average inventory for the first period is: (a) 50 (b) 100 (c) 150 (d) 200 (e) none of the above

(20) The average inventory for the fifth period is: (a) 50 (b) 100 (c) 150 (d) 200 (e) none of the above

(21) The total cost of over-time production for the all the six periods is: (a) $1000 (b) $1500 (c) $2700 (d) $3000 (e) None of the above

(22) The additional cost associated with the temporary workforce for all the six periods is: (a) $400 (b) $1200 (c) $2400 (d) $3000 (e) None of the above

(23) The back-order cost for the fifth period is: (a) $200 (b) $400 (c) $500 (d) $1000 (e) none of the above

(24) The total cost of meeting the demand is: (a) $17,700 (b) $18,900 (c) $18,300 (d) $17,200 (e) None of the above

(25) Which of the following options would help the manager in minimizing the total costs? (a) Regular time production only (b) Combination of regular and overtime production (c) Combination of regular and overtime production, and subcontracting (d) Combination of regular and overtime production, and temporary workforce (e) None of the above

PLEASE ANSWER ALL QUESTIONS AND PUT QUESTIONS NUMBERS BESIDE EACH ANSWER, THANKS

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