WAI knows from historical records that approximately 40 percent of its labor is used in Department 101
Question:
WAI knows from historical records that approximately 40 percent of its labor is used in Department 101 and 60 percent is used in Department 102. The reverse is true of machine time; 60 percent is used in Department 101 and 40 percent is used in Department 102.
(a) Calculate the labor and machine hours needed in Department 101 for each period of the MPS developed in Problem 4.
(b) Calculate the labor and machine hours needed in Department 102 for each period of the MPS developed in Problem 4.
Data From Problem 4:
Wine Accessories Inc. (WAI) produces two models of corkscrews, the standard model and a deluxe model.WAI follows a level aggregate plan, producing 20,000 corkscrews per month, or 5000 corkscrews per week. The MPS is developed in weekly time periods. The forecasts for each model and the projected available are shown in the next two tables. The replenishment order quantity is 2000 units for the standard model and 1000 units for the deluxe model. Note that you can place multiple orders if a single order is insufficient to cover the forecast (you can produce 4000 units of the standard model if necessary, or 2000 or 3000 units of the deluxe model). Remember that total weekly production is limited to 5000 corkscrews. Develop an MPS for each of the products.
Step by Step Answer: