Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The problem in Example 12.9 assumes that the heaviest demand occurs in the second (post-April) phase of selling. It also assumes that capacity is higher in the second production opportunity than in the first. Suppose the situation is reversed, so that the higher capacity and most of the demand occur in the first phase. Make some reasonable assumptions for the resulting input parameters, and then solve for the optimal production plan. Do you get qualitatively different results? Which situation would you rather face if you were Shirt Tails?
Example 12.9
PLANNING PRODUCTION OF BLOUSES AT SHIRTTAILS
ShirtTails is a clothing manufacturer that operates its own chain of discount retail stores. At the beginning of November 2011, ShirtTails is trying to plan its production of a new blouse that is worn primarily in the warmer months. Based on production constraints from other products, the company knows it has two opportunities to produce this blouse-in November 2011 and later in April 2012. The production capacity (for this blouse) is 1200 in November. In April, the capacity will increase to 2500. By April, demand for the blouses produced in November will be known. Using this information, ShirtTails will then be able to plan its production in April. The unit cost of producing a blouse is $12, and the selling price will be $14. These remain constant. There is a $1 holding cost per blouse still in inventory after the pre-April demand. By November 2012, any remaining blouses in inventory will be sold at a markdown price of $4. (This is because ShirtTails plans to introduce a new blouse the next year.) Demand for the blouses before April is not known with any certainty, but ShirtTails believes it should be somewhere between 100 and 1000. After April, the demand for blouses is expected to be anywhere from 3 to 7.5 times as large as the demand before April. What production plan should the company use to maximize the expected profit from these blouses?
Objective To develop an optimization model that specifies production quantities of blouses in two time periods, where the second production quantity can be based on demand information from the first period.
Compare these different measures
Tax file discussing the facts of the tax question.
What is the purpose of the chart of accounts? Why are internal controls and audit trails important in a computerized accounting system?
A firm must choose from one of two proposed projects presented below. The firm's cost of capital is 11.25%. Using the NPV method, explain which of the two projects the firm should accept, with an initial investment of Initial Investment = $185,000
The fund waits until the price adjusts, how many shares can be purchased? What is the gain to such illegal trades? Assume 5,000 shares are outstanding.
1.regulations are a. equal in authority to legislation if statutory b. equal in authority to legislation c. presumed
during its first year of operations nile.com reported an operating loss of 15 million for financial reporting and tax
Presented below are a number of business transactions that occurred during the current year for Gonzales, Inc. Instructions In each of the situations, discuss the appropriateness of the journal entries in terms of generally accepted accounting pri..
Conflict Resolution will always be part of successful teamwork within organizations. In order for Conflict Resolution to be successful, it is required to have efficient and well-organized team building techniques conducted within the organizations..
colliers company has determined that the variable overhead rate is 2.90 per direct labor hour in the fabrication
An alphabetical listing of all parents or guardians is available for selecting the sample. In each of the following descriptions of the method of selecting the 1,000 participants in the survey, identify the type of sampling method used (simple ran..
what are the elements of the accounting environment? how do they affect the financial statements? why are these
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd