Deb Bishop Health and Beauty Products has developed a new shamp0o and you need to develop its aggregate schedule. The cost accounting department hassupplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast.Click the icon to view the four-quarter forecast.Click the icon to view the costs relevant to the aggregate plan.Your job is to develop an aggregate plan for the next four quarters.a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers).Hiring and Layoff PlanHireLayoff(Units)QuarterForecastProduction(Units)1,50011,400CostsPrevious quarter's outputBeginning inventory1,500 unitsO units$45 per unit$9 per unit for every unit heldat the end of the quarter$40 per unit$70 per unit$35 per unit$20 extra per unitStockout cost for backordersInventory holding costQuarterForecastHiring workersLayoff workers11,40021,000Unit cost31,600Overtime41,300SubcontractingNot available

Given- Hiring cost = 40 per unitLayoff cost = 70 per unitProduction cost = 35 per unitStockout cost…

Answered: Deb Bishop Health and Beauty Products…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Deb Bishop Health and Beauty Products has developeda new shampoo, and you need to develop its aggregate schedule.The cost accounting department bas supplied you the costsrelevant to the aggregate plan, and the marketing department hasprovided a four-quarter forecast. All are shown as follows: Your job is to develop an aggregate plan for the next four quarters.a) First, try hiring and layoffs (to meet the forecast) as necessary.b) Then try a plan that holds employment steady.c) Which is the more economical plan for Deb Bishop Healthand Beauty Products?
Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. E Click the icon to view the four-quarter forecast. E Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Layoff (Units) Hire Quarter Forecast Production (Units) 1,500 1 1,400 Costs Previous quarter's output Beginning inventory 1,500 units O units $45 per unit $9 per unit for every unit held at the end of the quarter $40 per unit $70 per unit $35 per unit $20 extra per unit Stockout cost for backorders Inventory holding cost Quarter Forecast Hiring workers Layoff workers Unit cost 1 1,400 1,000 1,600 3 Overtime 4…
Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. Click the icon to view the four-quarter forecast. Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). More Info Hiring and Layoff Plan Hire Layoff Quarter Forecast Production (Units) (Units) 1,600 1 1,400 1400 0 200 2 1,000 1,000 0 400 3 1,600 1,600 600 0 4 1,200 ☑ More Info Previous quarter's output Beginning inventory Stockout cost for backorders Inventory holding cost Hiring workers Layoff workers Unit cost Overtime Subcontracting Costs 1,600 units $45 per unit O units $11 per unit for every unit held at the end of the quarter $50 per…
NowJuice, Inc. produces bottled pickle juice. A planner has developed an aggregate forecast for demand (in cases) for the next four months. Use the following information to develop an aggregate plan using the LEVEL strategy. Inventory holding cost is $1 per month per case and backlog cost is $5 per month per case. Beginning inventory is zero. Month May June July August Forecast 452 520 600 719 Cost Per Unit Monthly Capacity Regular Production 19.40 400 Overtime Production 1.5 x Regular Prod Cost 400 What is the TOTAL cost of the LEVEL plan over the planning horizon? Correct Answer 51,588.6 CAN SOMEONE SHOW ME HOW THEY GOT THE ANSWER 51588.6
How does the Wilson approach handle demand forecasting and inventory planning for new product launches?
Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: Click the icon to view the demand forecast. E Click the icon to view the cost data. John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: • Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. • Plan B: a level strategy. • Plan C: a level strategy that produces 1,000 cases per quarter and meets the forecast demand with inventory and subcontracting. a) Which strategy is the lowest-cost plan? Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Layoff (Units) Hire Quarter Forecast Production Inits) 1,300 1 1,700 Costs/Other Data Previous quarter's output = 1,300 cases Beginning inventory = 0 cases Stockout cost of backorders = $140 per case Inventory holding cost = $45 per…
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Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. the four-quarter forecast. Quarter Forecast 1 1,400 2 1,100 3 1,700 4 1,300 the costs relevant to the aggregate plan. Costs Previous quarter's output 1,600 units Beginning inventory 0 units Stockout cost for backorders $55 per unit Inventory holding cost $11 per unit for every unit held at the end of the quarter Hiring workers $50 per unit Layoff workers $75 per unit Unit cost $35 per unit Overtime $20 extra per unit Subcontracting Not available Your job is to develop an aggregate plan for the next four quarters. Part 2 a) Try hiring and layoffs (to meet the forecast) as necessary…
Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. the four-quarter forecast. Quarter Forecast 1 1,400 2 1,100 3 1,700 4 1,300 aggregate plan. Costs Previous quarter's output 1,600 units Beginning inventory 0 units Stockout cost for backorders $55 per unit Inventory holding cost $11 per unit for every unit held at the end of the quarter Hiring workers $50 per unit Layoff workers $75 per unit Unit cost $35 per unit Overtime $20 extra per unit Subcontracting Not available Your job is to develop an aggregate plan for the next four quarters. Part 2 a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole…
A Pizza Company has a demand forecast for the next 12 months that is shown in Table 1 The current workforce of 100 staff can produce 1500 cases of pizzas per month. (a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan? (b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10 per cent greater than normal working hours? Table 1 demand forecast Month Demand (cases per month) January 600 February 800 March 1000 April 1500 May 2000 June 1700 July…
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7-3. Nowjuice, Inc., produces Shakewell fruit juice. A planner has developed an aggregate forecast for demand (in cases) for the next eight months. month Apr forecast 4500 May 4400 Jun 6200 Jul 6400 Aug 5800 Sep 6600 Oct 7200 Nov 6900 Use the following information to develop aggregate plans. Regular production cost: $10.00 per case Regular production capacity: 5,000 cases Overtime production cost: $16 per case Subcontracting cost: $20 per case Holding cost: $1 per case per month Beginning inventory: 0 Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan. Which plan has the lowest total cost? (a) Use level production of 5,000 case per month. Supplement using overtime as needed (b) Use a combination of overtime (500 cases per month for the first five months), inventory, and subcontracting (500 cases per month from September to November, if necessary) to handle variations in demand. Note that suitable amounts of overtime for the last…

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