The warehouse manager wants to gain an understanding of his total costs for thenext year. Currently, he expects to have 30 employees earning an average of $18.2per hour (assume each employee works 1900 hours per year). Her other costsinclude overhead costs (25.8% of the labor costs) and security (fixed at $35000).Given the current wage pressure, she anticipates having to increase pay by 4.8%next year, but the fixed costs could drop by $750.What is the total cost for the best-case scenario?(Enter whole dollars)Your Answer:The warehouse manager wants to gain an understanding of his total costs for thenext year. Currently, he expects to have 28 employees earning an average of $17.9per hour (assume each employee works 2050 hours per year). Her other costsinclude overhead costs (23.4% of the labor costs) and security (fixed at $39500).What is the total cost for the base-case?(Enter whole dollars)Your Answer:

Given Information: Case 1:- Number of employees = 18 Earning of an employee per hour = $ 18.2 Number…

Answered: The warehouse manager wants to gain an…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 18P

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Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters. The number of available days of production and the anticipated demand are given below. Employees Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Demand Q1 2,400 6,019,000 They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below. 30 70 units/employee/quarter Q2 2,200 $1,000/unit $200/unit/quarter $1,500/unit <= 25% of Reg. Production Q3 1,700 Q4 1,800 Hire Cost Fire Cost Subcontracting Cost Subcontracting Limit Inventory Cost Initial Inventory $1,200/employee $800/employee $1,800/unit 400 units maximum $100/unit/quarter 280 units Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with inventory and backorders as needed. What is the total cost of this…
A manager faces peak (weekly) demand for one of her op-erations, but is not sure how long the peak will last. She caneither use overtime from the current workforce, or hire/lay off and just pay regular-time wages. Regular-time pay is$500 per week, overtime is $750 per week, the hiring cost is$2,000, and the layoff cost is $3,000. Assuming that peopleare available seeking such a short-term arrangement, howmany weeks must the surge in demand last to justify a tem-porary hire? Hint: Use break-even analysis (see SupplementA, “Decision Making”). Let w be the number of weeks ofthe high demand (rather than using Q for the break-evenquantity). What is the fixed cost for the regular-time option?Overtime option?
A manager faces peak (weekly) demand for one of her op-erations, but is not sure how long the peak will last. She caneither use overtime from the current workforce, or hire/lay off and just pay regular-time wages. Regular-time pay is$550 per week, overtime is $825 per week, the hiring cost is$2,000, and the layoff cost is $3,000. Assuming that peopleare available seeking such a short-term arrangement, howmany weeks must the surge in demand last to justify atemporary hire? Hint: Use break-even analysis (see Supple-ment A, “Decision Making Models”). Let w be the numberof weeks of the high demand (rather than using Q for thebreak-even quantity). What is the fixed cost for the regular-time option? Overtime option?
A company evaluate its hiring cost is RM150 per worker and layoff cost is RM200 per worker. Currently the company has 20 workers and based on forecast demand, the actual workers required to meet January demand is 25 workers. Calculate the hiring cost or layoff cost for that month. * O RM750 O RM350 O RM250 O RM1,000
The planner at a company that makes garden tractors is about to prepare an aggregate production plan that will cover the next 6 months. She has collected the following information: Month Demand Forecast Above the available capacity through permanent workforce 1 1,000 2 1,000 3 2,000 4 3,000 5 4,000 6 1,000 Total: 12,000 Production per month = 20 units per worker Initial inventory = 500 units Desired ending inventory (at the end of month 6) = 0 units Cost: Hire cost = $500 per temporary worker Inventory = $10 per tractor per month Backorder = $150 per tractor per month The optimum aggregate plan is: Month 1 2 3 4 5 6 Total Forecast Demand above regular capacity 1,000 1,000 2,000 3,000 4,000 1,000 12,000 # of temporary workers required 50 50 100 150 200 50 Temp. Workers hired 25 25 50 75 0 0 Temp. workers laid off 0…
A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows: Machine CostA $40,000B $30,000C $80,000Product forecasts and processing times on the machines are as follows: Processing Time per Unit (minutes) Product Annual Demand A B C 1 16000 3 4 2 2 12000 4 4 3 3 6000 5 6 4 4 30000 2 2 1 a.) Assume that machines operate 10 hours a day, 250 days a year. If we only consider purchasing costs, which machine would have the lowest total cost? b.) Assume machines operate 10 hours a day, 250 days a year. If we select machine A, how many machine A do we need? (Use common sense to decide the answer.)
The Donald Fertilizer Company produces industrial chemi-cal fertilizers. The projected manufacturing requirements (inthousands of gallons) for the next four quarters are 90, 60,90, and 140, respectively. A level workforce is desired, relyingonly on anticipation inventory as a supply option. Stock-outs and backorders are to be avoided, as are overtime andundertime.a. Determine the quarterly production rate required to meettotal demand for the year, and minimize the anticipationinventory that would be left over at the end of the year.Beginning inventory is 0.b. Specify the anticipation inventory that will be produced.c. Suppose that the requirements for the next four quartersare revised to 60, 90, 140, and 90, respectively. If total de-mand is the same, what level of production rate is needednow, using the same strategy as part (a)?
Agarwal Technologies was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Management has indicated that it plans to pay a PO.25 dividend 3 years from today, then to increase it at a relatively rapid rate for 2 years, and then to increase it at a constant rate of 8.00% thereafter. Management's forecast of the future dividend stream, along with the forecasted growth rates, is shown below. Assuming a required return of 11.00%, what is your estimate of the stock's current value? Year 0. 1 3 6. Growth rate NA NA NA NA 50.00% 25.00% 8.00% Dividends PO.000 PO.000 PO.000 P0.250 PO.375 PO.469 PO.506 O P10.45 O P10.99 OP9.94 O P10.72 O P10.19
Charles Lackey operates a bakery in Idaho Fals, Idaho. Because of its excellent product and excelent location, demand has inoreased by 25% in the last year. On far boo many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a statf meeting, one employee suggested ways to load the ovens differently eo that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,500 loaves per month, Employees are paid S8 per hour. In addtion to the labor cost. Charles also has a constant utity cost per month of $850 and a per loaf ingredient cost of $0.50 Current multtactor productivity for 640 wark hourn per month - 0223 loavesidolar (round your response to three decimal places) Ater increasing the number of…
The Yeasty Brewing Company Produces a popular local beer known as Iron Stomach. Beer sales are somewhat seasonal, and Yeasty is planning its production and workforce levels on March 31 for the next six months. The demand forecasts are as follows: month production days demand(in hundred of cases) April 14 75 May 20 100 June 24 200 July 26 140 August 20 100 September 18 50 As of March 31, Yeasty had 70 workers on the payroll. Over a period of 20 working days when there are 100 workers on the pay roll, Yeasty produced 10,000 cases of beer. The cost to hire each worker is $200 and the cost of laying off each worker is $400. Holding costs amount to 1 dollar per case per month. As of March 31, Yeasty expects to have 3,000 cases of beer in stock. It plans to start October with 3,500 cases on hand. a) Formulate the problem of planning Yeasty’s production levels as a linear program. b) Use Excel solver to solve the problem and give the solution (decision variables and…
Average and Total Costs The Accounting Club wants to have a party for its members. The costof renting space is $1,500, and the cost of refreshments will be $15 per person.Required1. What is the total cost if 100 people attend? What is the average cost?2. What is the total cost if 200 people attend? What is the average cost?3. Explain why average total cost differs with changes in total attendance.
5. Formulate a level sales and operations plan for a company with the following predicted demand: Month Demand 6,300 2 9,000 3 6,000 4 9,000 5 15,000 6 6,000 Total 51,300 The beginning workforce is 125 employees. The monthly output per employee is 150 units. The costs to hire and lay off a worker are $2,500 and $4,000, respectively. The cost to carry an item in inventory for one month is estimated at $10, and the stockout cost is $25 per unit. Show the production schedule, the inventory levels, and the changes in workforce from period to period. Compute the plan's cost.

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