Execute a strategy that produces the quantity demand

Assignment Help Strategic Management

Reference no: EM131259988

Using the information in Problem, develop plan B. Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Evaluate this plan by computing the costs for January through August.

Problem
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:

Her operations manager is considering a new plan, which begins in January with 200 units on hand. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan A.

Plan A:

Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $5,000 per 100 units. The cost of laying off workers is $7,500 per 100 units. Evaluate this plan.

Reference no: EM131259988

Questions Cloud

Criminal evidence and the strategies and techniques : You will need to provide a brief summary discussing what aspects of the topic you will explore and why that topic is relevant to strategies, advancements, and innovations in criminal evidence. In addition, you will need to ensure that scholarly an..

Design the logical structure of a database : Relational Database Systems - COMP 1005 Design the logical structure of a database using Entity-Relationship diagram and Apply normalization techniques to reduce redundancy in a database.

Derive the describing equation for a stretched string : Derive the describing equation for a stretched string subject to gravity loading and viscous drag. Viscous drag per unit length of string may be expressed by c(∂u/∂t); the drag force is proportional to the velocity. Classify the resulting equation..

What is their tax due-average tax rate-effective tax rate : Bill and Mercedes have $140,000 of taxable income and additional $10,000 of nontaxable income. Using the 2015 married-joint tax rates, what is their tax due, average tax rate, and effective tax rate? If they receive an additional $80,000 of taxable i..

Execute a strategy that produces the quantity demand : Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month.- Evaluate this plan by computing the costs for January through August.

Problem on thinking about insurance : Consider a one-period model in which an individual's probability of becoming disabled is equal to 0.1. If he/she becomes disabled, then earnings will be equal to 100. In the absence of disability, earnings will be equal to 200. Assume the indivi..

Processed further with additional costs : Binge Company manufactures products S1 and S2 from a joint process. Product S1 has been allocated $5,000 of total joint costs of $25,000 for the 2,000 units produced. S1 can be sold at the splitoff point for $5 per unit, or it can be processed furthe..

Equity investment transactions : The following equity investment transactions were completed by Chung Company in 2016: Journalize the entries for these transactions. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest ..

Create a list of three best practices for companies : From the e-Activity, create a list of three best practices for companies that want to be socially responsible and suggest ways that companies can go about implementing these best practices.

User Account

All Pages