A.6. - Using the information below, create a plan for each Chase, Level, and Mix
ID: 350186 • Letter: A
Question
A.6. - Using the information below, create a plan for each Chase, Level, and Mixed Strategies.
One file is to be submitted which will contain 3 separate plans. Prepare your work in MS Excel so that I can see your formulas and calculations. If needed, round up your totals.
Forecasted Demand:
Period/Demand
1/ 1,200
2/ 2,000
3/ 2,400
4/ 3,400
5/ 5,000
6/ 4,400
7/ 3,000
8/ 3,400
9/ 2,400
10/ 2,000
Costs Include:
Inventory Carrying Costs = $0.75 per unit held at the end of the month
Shortage or Backorder Costs = $5 per unit per month
Cost of moving employees to this production line = $500 per employee
Cost of moving employees off of this production line = $250 per employee
Beginning inventory = 1,000
Beginning number of employees = 6
Average rate each employee can produce per month = 200
Should be laid out in this chart form:
If you can't use or show formulas in Excel, please include calculations or formulas used if done long hand. Thank you.
10 Total Period Forecasted Demand Production Rate Ending Invento Stockout/Backorder Inventory Carrying Cost Ending Inventory x$0.75 Stockout Costs (units backordered x$5 Number of Employees Cost of Moving Employee Total Costs (Inv.CC+ Stockout+ Cost to move employee)Explanation / Answer
Note: Beginning number of employees = 6
Mixed strategies is best as the cost is lowest for this method.
Chase Plan as per forecasted demand by changing number of employees Period 1 2 3 4 5 6 7 8 9 10 Total Forecasted Demand 1200 2000 2400 3400 5000 4400 3000 3400 2400 2000 29200 Production rate per employee 200 200 200 200 200 200 200 200 200 200 Production (production rate * number of employee) 200 2000 2400 3400 5000 4400 3000 3400 2400 2000 28200 Beginning Inventory 1000 0 0 0 0 0 0 0 0 0 1000 Ending Inventory 0 0 0 0 0 0 0 0 0 0 0 Stock out/Backorder 0 0 0 0 0 0 0 0 0 0 0 Inventory Carrying cost (Ending Inventory * $0.75) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Stock Out Cost (Units backordered * $5) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Number of Employee 1 10 12 17 25 22 15 17 12 10 Cost of moving employee $1,250 $4,500 $1,000 $2,500 $4,000 $750 $1,750 $1,000 $1,250 $500 $18,500 Total Cost (Inv. CC + Stock out + Cost of moving Employee) $1,250 $4,500 $1,000 $2,500 $4,000 $750 $1,750 $1,000 $1,250 $500 $18,500 Level Plan with fixed number of employees Period 1 2 3 4 5 6 7 8 9 10 Total Forecasted Demand 1200 2000 2400 3400 5000 4400 3000 3400 2400 2000 29200 Production rate per employee 200 200 200 200 200 200 200 200 200 200 Production (production rate * number of employee) 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 30000 Beginning Inventory 1000 2800 3800 4400 4000 2000 600 600 200 800 20200 Ending Inventory 2800 3800 4400 4000 2000 600 600 200 800 1800 21000 Stock out/Backorder 0 0 0 0 0 0 0 0 0 0 0 Inventory Carrying cost (Ending Inventory * $0.75) $2,100 $2,850 $3,300 $3,000 $1,500 $450 $450 $150 $600 $1,350 $15,750 Stock Out Cost (Units backordered * $5) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Number of Employee 15 15 15 15 15 15 15 15 15 15 Cost of moving employee $4,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,500 Total Cost (Inv. CC + Stock out + Cost of moving Employee) $6,600 $2,850 $3,300 $3,000 $1,500 $450 $450 $150 $600 $1,350 $20,250 Mixed Strategies with minimum 6 employees after that increasing or decreasing them as per forecasted demand Period 1 2 3 4 5 6 7 8 9 10 Total Forecasted Demand 1200 2000 2400 3400 5000 4400 3000 3400 2400 2000 29200 Production rate per employee 200 200 200 200 200 200 200 200 200 200 Production (production rate * number of employee) 1200 1200 2200 3400 5000 4400 3000 3400 2400 2000 28200 Beginning Inventory 1000 1000 200 0 0 0 0 0 0 0 2200 Ending Inventory 1000 200 0 0 0 0 0 0 0 0 1200 Stock out/Backorder 0 0 0 0 0 0 0 0 0 0 0 Inventory Carrying cost (Ending Inventory * $0.75) $750 $150 $0 $0 $0 $0 $0 $0 $0 $0 $900 Stock Out Cost (Units backordered * $5) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Number of Employee 6 6 11 17 25 22 15 17 12 10 Cost of moving employee $0 $0 $2,500 $3,000 $4,000 $750 $1,750 $1,000 $1,250 $500 $14,750 Total Cost (Inv. CC + Stock out + Cost of moving Employee) $750 $150 $2,500 $3,000 $4,000 $750 $1,750 $1,000 $1,250 $500 $15,650Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.