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6. Caterpillar produces various types of earth moving vehicles. The Backhoe Fast Loader (BFL) is a product that provides faster digging time during construction.
6. Caterpillar produces various types of earth moving vehicles. The "Backhoe Fast Loader (BFL)" is a product that provides faster digging time during construction. The production manager at Caterpillar obtained forecasted demand for BFL and available capacity (in units) as shown below to develope a four-month aggregate plan. Capacity & Demand Month 1 Month 2 Month 3 Month 4 Regular time 225 275 280 300 Overtime 15 24 26 24 Subcontract 14 15 15 17 Demand 240 314 311 301 The cost of producing each unit is $985 on regular time, $1,310 on overtime, and $1,500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory and backorders are not permitted. Minimizing cost when allocating resources to meet demand using the transportation method, such that the optimal cost of the plan is = $ (enter your response as a whole number). 7. An upscale country club provides food services to their members at a discounted price. Avisory board of the club is interested in determining the break-even point of their food business so the club does not loose money. They have decided to break down the food sales for the club into four categories. The first category is beer and the estimate is to be able to sale 34,000 beer drinks. The selling price for each unit will average $1.75; the cost is $1.00 per unit. The second category is meal, which is expected to be 9,000 units with an average price of $10.00 per unit and a cost of $6.00 per unit. The third category is wine, of which they expect to sell 12,000 units, with an average price of $2.50 per unit and a cost of $0.75 per unit. The last category is desserts, which they expect to sell 22,500 units at an average price of $6.25 per unit with a cost of $3.25 per unit. Fixed cost (i.e., maintenance, utilities, etc.) is determined to be $1,800 per month plus $2,400 per month for rental equipments. A) Therefore, the monthly break-even point for the food service in dollars = $ two decimal places). per month (round your response to b) If the food service is open 30 days per month, then the expected number of "meals" that need to be sold each day to break-even = meals per day (round your response to one decimal place).
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