Calculate the inventory carrying cost associated

Assignment Help Operation Management

Reference no: EM131149423

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 201 suits, while each part-time employee can produce 161 suits per month. Demand for bathing suits for the next four months is as follows: MAY JUNE JULY AUGUST 3,230 2,830 3,130 3,030 Beginning inventory in May is 403 complete (a complete two-piece includes both top and bottom) bathing suits. Bathing suits cost $40 to produce and carrying cost is 24 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.) May June July August Forecast 3,230 2,830 3,130 3,030 Beginning inventory Production required Regular workforce Regular production Temp workforce Temp production Total production Ending inventory Inventory cost

Reference no: EM131149423

Questions Cloud

Defined as product that sells less than half of forecast : Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $10 each from its Asian supplier, TeddySports. Unfortunately, at the time of order placement, demand is still uncertain. What is the probability this parka tu..

Applying the central limit theorem : A nationwide study found that the average yearly claim per automobile insurance policy (after deductible) is $1,000 with a standard deviation of $400. Consider these parameter values to be the true population parameters.

Takes the function of information management seriously : Chief Information Officer is relatively new within the structure of Canadian organizations. Why is this role now important, what skills should a CIO possess, and do you feel that the organizations to which you presently belong takes the function of i..

Design effective control systems : Explain what leaders need to do to design effective control systems and explain how at least three of Michael Hammer seven “deadly sins” hurt a business/organization you were/are connected to

Calculate the inventory carrying cost associated : 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. Calculate..

Develop a business financial problem : Develop a business financial problem and use the method you have chosen to analyze your dilemma and come up with a solution based on the method you chose to implement

Define the meaning of public administration : Define the meaning of public administration, and explain how government plays an integral role in developing policies

Discuss two biggest challenges facing financial managers : Given the market structures as described in the video, identify at least two articles from the ProQuest database that highlight and discuss two of the biggest challenges facing financial managers today in these varied market structures

Evaluate the organization vision statement : Create a 12- to 15-slide Microsoft PowerPoint presentation for a Mini-Strategy using the Mini-Strategy Outline. Include the following in your outline: Evaluate the organization's vision statement. Discuss the organization's current goals and object..

User Account

All Pages