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6 20 points Saved Structure Sales and Operation Plan for the toy company and suggest what production strategy Toy Factory should follow. The accounting department
6 20 points Saved Structure Sales and Operation Plan for the toy company and suggest what production strategy Toy Factory should follow. The accounting department has supplied you with data on costs and the marketing department has provided a three quarter forecast. The information is provided in Tables 1 and 2. Table 1: Monthly demand at toy factory Quarter 1 2 3 4 Demand Forecast (units) 1,500 1,200 1,300 2,000 6,000 1,500 Total Demand Average demand (per quarter) Table 2: Toy Factory Products Planning Data Current workforce Average output per worker Inventory carrying (or holding) cost Cost to produce one unit Hiring cost Subcontracting cost Firing (or layoff) cost Beginning inventory 20 workers 100 units per quarter $5 per unit per quarter $8 per unit $80 per worker $10 $90 per worker O units A. Copy Table 3 using "Ctir+C" and paste it into the answer field using "Ctir+V". Calculate values to support CHASE production plan using adjustment of workforce and write calculated values into pasted Table 3. Ending inventory target at the end of the period is zero units. Table 3: CHASE production plan: Adjust using workforce Beginning inventory = 0 Beginning workers = 20 workers Quarter Demand Regular Ending Subcontracting Workers Hire production Inventory required Fire/ Layoff 1 1,500 2 1,200 3 1,300 A. Copy Table 3 using "Ctir+C" and paste it into the answer field using "Ctir+V". Calculate values to support CHASE production plan using adjustment of workforce and write calculated values into pasted Table 3. Ending inventory target at the end of the period is zero units. Table 3: CHASE production plan: Adjust using workforce Beginning inventory = 0 Beginning workers = 20 workers Quarter Demand Regular Ending production Inventory Subcontracting Workers Hire required Fire/ Layoff 1 1,500 2 1,200 3 1,300 4 Total 2,000 6,000 B. Copy Table 4 using "Ctir+C" and paste it into the answer field using "Ctir+V". Calculate values to support LEVEL production plan and write calculated values into pasted Table 4. Ending inventory has to be 0 units in period 4. Table 4: LEVEL production plan Beginning inventory = 0 Beginning workers = 20 workers Quarter Demand Regular Ending production Inventory Subcontracting Workers Hire required Fire/ Layoff 1 1,500 2 1,200 3 1,300 4 2,000 Total 6,000 C. Use the information in Tables 1, 2 & 3, to determine the Total Costs for the toy company if the CHASE production plan is used D. Use the information in Tables 1, 2 & 4, to determine the Total Costs for the toy company if the LEVEL production plan is used. E. Analyse which production strategy, LEVEL or CHASE, should toy company follow? Justify your answer. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt IO |
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