Reference no: EM131947188
Scenario
For this assessment, suppose that you are the operations manager for ABC Manufacturing, a small manufacturing company founded three years ago.
ABC has been manufacturing and selling an electric motor for the past year, but the company has not always had sufficient workers assigned to manufacturing this electric motor in order to satisfy demand. ABC's president asked you to plan for the production of this motor for the next six months.
You have decided you will use a level aggregate plan for the electric motor, meaning that you will manufacture the same number of units each month.
ABC's president has told you that some customers order this motor well in advance of when needed, and thus it is allowable to have backorders, if needed.
You know there are currently 150 units in inventory (starting inventory = SI), and ABC's marketing manager estimates that the demand for the motor (in units) for each of the next six months (M = 6) will be 240, 225, 265, 270, 260, and 275 (D1, D2, D3, D4, and D5 respectively).
You have decided you would like to reduce average inventory level of several products (including this one), and you want to have 50 units in inventory six months from now (ending inventory = EI).
Question . Refer to the ABC Manufacturing scenario to complete the following:
Provide the algebraic equation for the reorder point (RP, using DQ and LT as variables).
Calculate and provide the numerical EOQ, rounded to the closest whole number.
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At what rebate claim rate would the rebate equally desirable
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Determine the costs of internal and external equity
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How much of a dividend will you receive
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Financial decision maker gain by adding profitability index
: What value might the financial decision maker gain by adding the profitability index to the decision-making process?
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Calculate and provide the numerical eoq
: For this assessment, suppose that you are the operations manager for ABC Manufacturing, a small manufacturing company founded three years ago.
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What is value of each bond at the given moment
: Bond A is a 12-year 7% annual coupon bond. Bond B is a 12-year 9% annual coupon bond. Bond C is a 12-year 11% annual coupon bond.
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List the effects to your organization
: Your sales team gains a new market in Johanesburg, South Africa and wants to present a contract to the client selling under EXW, Allentown, Pa.
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Does her response encourage ethical conduct
: Is it unethical or illegal for a sales rep to represent that he is a doctor when he has a doctorate degree in chemistry but is not actually a physician?
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How many oid bonds must the firm issue
: Blackstone Energy is planning to issue two types of 25-year, non-callable bonds to raise a total of $6 million. First, 3.000 bonds with a 10% annual coupon rate
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