Calculate the inventory carrying cost associated with plan

Assignment Help Operation Management

Reference no: EM131143156

Helter Industries, a company that produces a line of women's bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps can be hired when needed and can be used as needed, whereas the full-time employees must be paid whether they are needed or not. Each full-time employee can produce 205 suits, while each part-time employee can produce 165 suits per month. Demand for bathing suits for the next four months is as follows: MAY JUNE JULY AUGUST 3,140 2,740 3,040 2,940 Beginning inventory in May is 404 complete (a complete two-piece includes both top and bottom) bathing suits. Bathing suits cost $40 to produce and carrying cost is 36 percent per year. Develop an aggregate plan that uses the 12 full-time employees each month and a minimum number of temporary employees. Assume that all employees will produce at their full potential each month. Calculate the inventory carrying cost associated with your plan using planned end of month levels. (Round "Inventory cost" to 2 decimal places.)

Reference no: EM131143156

Questions Cloud

Example of an agile development technique : Research the process of system development life cycle. Discuss some of the problems of the SDLC and how agile development intends to address these problems. Support your answer with an example of an agile development technique.

Think of two creative ideas for services : Think of two creative ideas for services to be provided by the grocery industry. Be very specific in terms of the rationale behind your approach, and the systematic procedures (e.g., questionnaire) you would use to introduce your services to the mark..

Compare the various supply chain segments : What are the different disciplines within a typical supply chain? Compare the various supply chain segments within your own sphere of influence or a company with which you are familiar.

Use overtime and inventory with stable workforce : Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of work..

Calculate the inventory carrying cost associated with plan : Helter Industries, a company that produces a line of women's bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps..

Develop production plan-calculate the annual cost for firm : Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,800; winter, 7,500; spring, 6,500; summer, 12,800. Inventory at the beginning of fall is 540 units. At the beginning of fall, you have 35 workers. As..

An exporter has shipped product to customer overseas : An exporter has shipped product to a customer overseas under ExWork's Shipper's Dock terms. When the product arrived one of the boxes from the shipment is severely damaged and the product inside is broken beyond use or repair. Based on the ICO term u..

Related to power and status differences among team members : If you were the leader of a team developing a new computer game, and conflicts arose related to power and status differences among team members, What would you do? How might you use the various conflict resolution techniques described in the chapter?

What is average amount of time that person can spend in line : To support National Heart Week, the Heart Association plans to install a free blood pressure testing booth in El Con Mall for the week. Previous experience indicates that, on the average, 3 persons per hour request a test. Assume arrivals are Poisson..

User Account

All Pages