D Problem 11 6 Algo Manager Chris Channing Of Fabric Mills Inc Has Developed The Forecast Shown In The Table For Bo 1 (44.12 KiB) Viewed 12 times
D Problem 11 6 Algo Manager Chris Channing Of Fabric Mills Inc Has Developed The Forecast Shown In The Table For Bo 2 (45.48 KiB) Viewed 12 times
D Problem 11-6 (Algo) Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts of cloth. The figures are in hundreds of bolts. The department has a regular output capacity of 272(00) bolts per month, except for the seventh month, when capacity will be 252(00) bolts. Regular output has a cost of $25 per hundred bolts. Workers can be assigned to other jobs if production is less than regular. The beginning inventory is zero bolts. 3 4 225 310 Month Forecast Forecast Output Regular Overtime Output-Forecast Cost 275 Regular Overtime Total 2 350 a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is $55 per hundred bolts. Regular production can be less than regular capacity. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Period 275 2 5 280 350 3 275 225 4 7 270 310 Total 1,985 5 280 6 275 7 270 Total 1,985
b. Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to handle the excess above regular capacity at a cost of $45 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $4 per hundred bolts. (Round your Average inventory values to 1 decimal place. Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Penod Forecast Output Regular Subcontracting Inventory Beginning Ending Average Cost Regular Subcontracting Inventory Total 275 2 350 3 225 4 310 5 280 275 270 Total 1,985
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