How much savings would result from the plan you recommend

Assignment Help Business Management
Reference no: EM131260168

International Business Operations Management

A company produces to a seasonal demand, with the forecast for the next 12 months as given below.

Month

Demand

January

600

February

700

March

800

April

700

May

600

June

500

July

600

August

700

September

800

October

900

November

700

December

600

The present labor force can produce 500 units per month. Each employee added can produce an additional 20 units per month and is paid $1000 per month. The cost of materials is $30 per unit. Overtime can be used at the usual premium of time and a half for labor up to a maximum of 10 percent per month. Inventory-carrying cost is $50 per unit per year. Changes in production level cost $100 per unit due to hiring, line changeover costs, and so forth. Assume 200 units of initial inventory. Extra capacity may be obtained by subcontracting at an additional cost of $15 per unit over and above the company's producing them itself on regular time.

1. Provide a detailed cost breakdown for using a level vs. a chase strategy to meet the increased demand.

2. Which strategy do you recommend?

3. How much savings would result from the plan you recommend?

3-4 Scholarly written pages in APA format with 3-4 scholarly references.

Verified Expert

The current report is a solution to production planning problem.The objective is to find the best strategy among the level and chase strategies. Calculations are done based on the data provided and finally shown that the chase strategy is the right and best solution from cost point of view. savings also shown.

Reference no: EM131260168

Questions Cloud

What is it slope and its intercept : Find the inverse demand curve. What is it's slope and its intercept? Find the equation for Total Revenue. Find the equation for Marginal Revenue. What is the quantity where Total Revenue is maximized? How is this related to Marginal Revenue?
Consists of general journal and cash receipts journal : The accounting system of Carlton and Sons consists of a general journal (GJ), a cash receipts journal (CR), a cash disbursements journal (CD), a sales journal (SJ), and a purchases journal (PJ). For each of the following, indicate which journal shoul..
To what do you attribute sandy''s health problems : Is there anything that this company could do to alleviate stress for its supervisors? What individual coping strategies could Sandy try?
What is the net present value for each project : Answer the following questions. Suppose the cost of capital is 12%, what is the Net Present Value for each project? What are the pros and cons in using the NPV decision rule for the capital budgeting
How much savings would result from the plan you recommend : Provide a detailed cost breakdown for using a level vs. a chase strategy to meet the increased demand. Which strategy do you recommend? How much savings would result from the plan you recommend?
Prepare a list showing the quantity of each part required : Prepare a list showing the quantity of each part required to produce the requirements for the service manager and the production request of 10 Bs and Fs.
Explain james''s behavior in terms of the frustration model : What, if anything, can be done to help the James Emerys of the world? Keep your answer related to human resources management.
Specific factors model of international trade : Consider the Specific Factors model of international trade between two countries: US and China. Suppose relative demand is identical in the two countries.
Differences between accounting profit and economic profit : Discuss the differences between accounting profit and economic profit. What does it mean when a company makes zero accounting profit? How about zero economic profit?

Reviews

inf1260168

2/17/2017 2:01:28 AM

I just want to confirm the paper will be scholarly written in APA format and the answer is written in paragraph format, i.e. not just different tables with the answers in them can you please verfiy again - paper will be scholarly written in APA format and the answer is written in paragraph format, i.e. not just different tables with the answers in them? The given question is a problem - there is no theory associated with the problem - hence you did best to explain the steps and procedures in paragraph format with calculations in excel sheet. Of course formatting is done in APA style- Still if any specific changes required in accordance to problem specifications , i will approach you. But broadly it is the solution for the given problem in numerals and remarks format.

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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