Explain in two to three sentences without calculations

Assignment Help Operation Management
Reference no: EM13922923

Dundas Bike Components Inc. of Wheelville, Illinois, manufactures bicycle wheels in two different sizes for the Big Bike Co. assembly plant located across town. David Dundas, the firm owner manager, has just received Big Bik order for the next six months.

a. Under what circumstances will it be possible to develop just one aggregate plan rather than two (one for each size wheel)? Explain in two to three sentences without calculations.
b. Currently Dundas employs 28 full-time highly skilled employees, each of whom can produce 50 wheels per month. Because skilled labor is in short supply in the Wheelville area, David would like to develop one pure level- output plan. There is no inventory of finished wheels on hand at present, but David would like to have 300 on hand at the end of April. Big Bike will tolerate back orders of up to 200 units per month. Show your level plan in tabular form. The amount produced using overtime should be the same except for the last month.
c. Calculate the total annual cost of your plan using thesecosts:

Reference no: EM13922923

Questions Cloud

The forecast is 80 units for each of the first two periods : The forecast is 80 units for each of the first two periods and 60 units for each of the next three periods. The starting inventory is 20 units.
The mps rule is to schedule production if the projected : The forecast for each week of an eight week schedule is 50 units. The MPS rule is to schedule production if the projected on hand inventory would be negative without it. Customer orders  are as follows
Mps rule of ordering production when projected on hand : Customer orders are 25 for week 2, 16 for week 3, 11 for week 4, 8 for week 5, and 3 for week 6. Use the MPS rule of ordering production when projected on hand inventory would be negative without production. Prepare the master schedule for weeks 2..
When the projected on hand inventory would be negative : When the projected on hand inventory would be negative without production” to schedule production when the projected on hand inventory would be less than 10 without production.
Explain in two to three sentences without calculations : Under what circumstances will it be possible to develop just one aggregate plan rather than two (one for each size wheel)? Explain in two to three sentences without calculations.
Compare it to the total cost of the plan used in the solved : Compute the total cost of your plan, and compare it to the total cost of the plan used in the solved problem. Assume 20 full-time workers.
Record the accrual of payroll taxes : calculate the employer payroll taxes using the following rates: state unemployment, 5.4%, federal unemployment 0.8%.Journalize the entry to record the accrual of payroll taxes.
Compute the total cost for this plan : Compute the total cost for this plan, and compare it to the cost of the plan used in the solved problem. Assume 20 full-time workers and regular monthly production regular capacity.
Assume regular monthly production regular capacity : Use subcontracting as needed, but no more than 20 units per period. Compute the total cost of each plan. Which plan has the lowest cost? Assume regular monthly production regular capacity.

Reviews

Write a Review

Operation Management Questions & Answers

  Analyze the key differences between leaders and managers

Analyze the key differences between leaders and managers.

  A manager performs a financial analysis of each and every

a manager performs a financial analysis of each alternative in order to determine which alternative is most likely to

  How a manager with integrity can help a team

Provide a 1-page reflection paper on why you feel integrity is an important value for a manager to have. Give an example of how a manager with integrity can help a team. Identify any issues that may occur if a manager lacks integrity.

  Six-month periods covered by the forecast

A manager receives a forecast for next year. Demand is projected to be 600 units for the first half of the year and 900 units for the second half. The monthly holding cost is $2 per unit, and it costs an estimated $55 to process an order. Assuming th..

  Quality characteristic has a design specification

A quality characteristic has a design specification (in inches) of 0.200 ± 0.020. If the actual process value of the quality characteristic exceeds 0.200 by the tolerance of 0.020 on either side, the product will require a repair of $50. Develop the ..

  Find the rate per exposure unit using pure premium method

The chief actuary has assigned you the project of developing rates for liability coverage for their new classic and antique car liability coverage program.Calculate the rate per exposure unit using the pure premium method

  Utilization and efficiency of the conference facility

An executive conference center has the physical ability to handle 1,100 participants. However, conference management personnel believe that only 1,000 participants can be handled effectively for most events. The last event, although forecasted to hav..

  Factors of production move internationally

Briefly discuss why factors of production move internationally. Do you think it is wise for factors of production to move? Do you think with the movement of these factors it will increase or decrease exports and imports? Why, or why not?

  Determine which location would be the better choice

The estimated rate of return is 10% per year. Using net present value, determine which location would be the better choice.

  Why is strategic-group analysis important

Why is strategic-group analysis important for superior competitive positioning?

  How many items need to be counted each day

She would like to setup a system in which all A items are counted monthly (every 20 days), all B items are counted quarterly (every 60 working days), and all C items are counted semiannually (every 120 working days).

  Exercise for uncertain demand

In a given period demand for an item is equally likely to be any value between 100 and 199 units. Each unit of the item costs £75 and can be sold for £100. At the end of the period all unsold stock is passed to a recycler who pays £25 a unit. How man..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd