Grassboy. Ltcd. produces a line of Canadian lawn mowers for both domestic sales and export to...

 

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Grassboy. Ltcd. produces a line of Canadian lawn mowers for both domestic sales and export to the U.S.A. The mowers come in a variety of engine sizes and cutting widths. In an effort to deal with the highly seasonal nature of its demand, Grasshoy forecasts demand for the next eight quarters. The forecast for the next eight quarters is given in the following table. Quarter Demand Forecast 1 5000 7500 15,000 4 5000 5 6000 6 8000 7 16.000 5500 Grassboy has a single production line that can assemble 7000 units per quarter per shift using regular time and can assemble an additional 25 percent using overtime. The assembly line can be operated for either one or two shifts; however, the union contract permits making changes to the number of shifts only at the beginning of a quarter. The company is permitted to send the workers home early without pay if its plans call for pro- ducing less than 7000 units in a given quarter. The cost of adding a shift is SC7500 (Cana- dian dollars), and the cost of eliminating a shift is SC14,000. Grassboy also has identified several overseas manufacturers that can produce as many of its lawn mowers as needed as subcontractors. 3. On average, the cost of producing a single lawn mower is SC25 per mower using regular time and SC33 using overtime. The delivered cost of mowers produced by subcontractors is SC49. Grassboy's cost of holding a lawn mower in inventory for one quarter is SC4, and the cost of backordering a unit is SC12 per quarter. Inventory costs are calculated on the basis of average inventory held during the quarter (i.e., the average of the quarter's beginning and ending inventory). Backorder costs are calculated on the basis of the ending backorder position in a given quarter. Grassboy was operating with one shift in the quarter just ending and expects to end the quarter with 750 units in inventory. DESIGN YOUR OW N AG GREGOTE PLAN. Ex PLAIN IN ONE PARAGRAPH CALCULATIONS IN EXCEL Grassboy. Ltcd. produces a line of Canadian lawn mowers for both domestic sales and export to the U.S.A. The mowers come in a variety of engine sizes and cutting widths. In an effort to deal with the highly seasonal nature of its demand, Grasshoy forecasts demand for the next eight quarters. The forecast for the next eight quarters is given in the following table. Quarter Demand Forecast 1 5000 7500 15,000 4 5000 5 6000 6 8000 7 16.000 5500 Grassboy has a single production line that can assemble 7000 units per quarter per shift using regular time and can assemble an additional 25 percent using overtime. The assembly line can be operated for either one or two shifts; however, the union contract permits making changes to the number of shifts only at the beginning of a quarter. The company is permitted to send the workers home early without pay if its plans call for pro- ducing less than 7000 units in a given quarter. The cost of adding a shift is SC7500 (Cana- dian dollars), and the cost of eliminating a shift is SC14,000. Grassboy also has identified several overseas manufacturers that can produce as many of its lawn mowers as needed as subcontractors. 3. On average, the cost of producing a single lawn mower is SC25 per mower using regular time and SC33 using overtime. The delivered cost of mowers produced by subcontractors is SC49. Grassboy's cost of holding a lawn mower in inventory for one quarter is SC4, and the cost of backordering a unit is SC12 per quarter. Inventory costs are calculated on the basis of average inventory held during the quarter (i.e., the average of the quarter's beginning and ending inventory). Backorder costs are calculated on the basis of the ending backorder position in a given quarter. Grassboy was operating with one shift in the quarter just ending and expects to end the quarter with 750 units in inventory. DESIGN YOUR OW N AG GREGOTE PLAN. Ex PLAIN IN ONE PARAGRAPH CALCULATIONS IN EXCEL

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Mentioned below are the facts and figures in order to design a solution Lets us find unit cost if we double the shift This will include doubling and r... View the full answer