Create a Project of 3 pages
A company produces to a seasonal demand, with the forecast for the next 12 months as given below.
|
Month
|
Demand
|
|
January
|
600
|
|
February
|
700
|
|
March
|
800
|
|
April
|
700
|
|
May
|
600
|
|
June
|
500
|
|
July
|
600
|
|
August
|
700
|
|
September
|
800
|
|
October
|
900
|
|
November
|
700
|
|
December
|
600
|
The present labor force can produce 500 units per month. Each employee added can produce an additional 20 units per month and is paid $1000 per month. The cost of materials is $30 per unit. Overtime can be used at the usual premium of time and a half for labor up to a maximum of 10 percent per month. Inventory-carrying cost is $50 per unit per year. Changes in production level cost $100 per unit due to hiring, line changeover costs, and so forth. Assume 200 units of initial inventory. Extra capacity may be obtained by subcontracting at an additional cost of $15 per unit over and above the company's producing them itself on regular time.
Provide a detailed cost breakdown for using a level vs. a chase strategy to meet the increased demand.
Which strategy do you recommend?
How much savings would result from the plan you recommend?
Project - 2 pages
A supplier provides parts to a manufacturing company that demands JIT deliveries. At the present time it takes 6 hours to make a round-trip between the supplier's warehouse and the customer, including loading, travel and unloading time. The lot size is 12 pallet loads on a truck, and the manufacturer uses 2 pallets per hour.
1.How many trucks are needed to ship the pallets to the manufacturer?
2.What is likely to happen if the trucks break down?
3.How can the supplier ensure that the customer does not run out of parts even in the face of delivery problems or other uncertainties?
4.What will happen if the manufacturer runs into trouble and shuts down for a period of 6 hours?
5.If unexpected overtime is required, how do you effectively communicate the need to your workforce?
assignment instructions
1. Should have in-text citations for each paragraph
2. Should have full web addresses
3. Should have the correct amount of pages (next to the assignment number)
4. Originality score should be below 15%
5. Should cover all information provided
Excel
1. Should show all formulas