Crop Juice (Crop) is a company that produces fruit juices. Assume the following: In Crop's factory,...
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Crop Juice (Crop) is a company that produces fruit juices. Assume the following: In Crop's factory, there are 45 workers who work 25 days a month with regular working hours of 8 hours per day. Each worker is paid $6/hour for regular work hours and $7/hour for overtime. Based on the company's policy, each worker is not allowed to clock more than 8 hours of overtime per month. It takes 60 minutes to produce 1 bottle of juice and the material cost is $3/bottle. The cost of carrying inventory to the next month is $0.50/bottle. The cost of subcontracting is $6.50/bottle. Assume Crop has a starting inventory of 1,200 bottles and wishes to end the planning period with at least 1,000 bottles. The demand forecast for the juice bottles for the next 6 months is given in Table 1 below. Table 1: Demand for Crop juice bottles Period Demand (bottles) 3,000 3,500 2,700 2,200 3,900 3,100 (months) 1 2 3 4 5 6 Assume no backlogs and no firing/hiring during the planning period. (a) What is the total cost of the optimal aggregate plan for Crop for the planning period? Solve using Excel. Present in a table the cost incurred by each component and state the total cost. One way to present your answer is shown below. (You only need to report the costs; you do not need to show how you formulate.) Crop Juice (Crop) is a company that produces fruit juices. Assume the following: In Crop's factory, there are 45 workers who work 25 days a month with regular working hours of 8 hours per day. Each worker is paid $6/hour for regular work hours and $7/hour for overtime. Based on the company's policy, each worker is not allowed to clock more than 8 hours of overtime per month. It takes 60 minutes to produce 1 bottle of juice and the material cost is $3/bottle. The cost of carrying inventory to the next month is $0.50/bottle. The cost of subcontracting is $6.50/bottle. Assume Crop has a starting inventory of 1,200 bottles and wishes to end the planning period with at least 1,000 bottles. The demand forecast for the juice bottles for the next 6 months is given in Table 1 below. Table 1: Demand for Crop juice bottles Period Demand (bottles) 3,000 3,500 2,700 2,200 3,900 3,100 (months) 1 2 3 4 5 6 Assume no backlogs and no firing/hiring during the planning period. (a) What is the total cost of the optimal aggregate plan for Crop for the planning period? Solve using Excel. Present in a table the cost incurred by each component and state the total cost. One way to present your answer is shown below. (You only need to report the costs; you do not need to show how you formulate.)
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Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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