Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(d) Excel Medical Ltd., a Malaysian producer of portable kidney dialysis units and other medical products. The company has 30 workers at production line. Demand
(d) Excel Medical Ltd., a Malaysian producer of portable kidney dialysis units and other medical products. The company has 30 workers at production line. Demand and capacity (in units) for the next four quarters are forecast as follows: Capacity Source Quarter 1 Quarter 2 Quarter 3 Quarter 4 Demand 25,500 35,400 36,100 30,100 Labor Regular Time 26,500 25,500 29,000 32,000 Overtime 2,000 2,000 2.400 2.400 Subcontract 5,000 5,000 5,000 5.000 The cost of producing each dialysis unit is RM3,500 on regular time, RM3,800 on overtime, and RM4,000 on a subcontract. Annual cost to carry a unit of kidney dialysis is RM500. Shortage cost is RM4,200 per unit. There will be no beginning inventory in quarter 1. Hire a worker costs RM2,000 and firing costs RM3,000 per worker. The company needs to hold at least 500 units as safety stock at the end of 4th quarter. (1) Based on the above scenario, develop a production plan. (8.5 marks) (ii) Compute the total cost of the plan. (6.5 marks) [Total: 30 marks] (d) Excel Medical Ltd., a Malaysian producer of portable kidney dialysis units and other medical products. The company has 30 workers at production line. Demand and capacity (in units) for the next four quarters are forecast as follows: Capacity Source Quarter 1 Quarter 2 Quarter 3 Quarter 4 Demand 25,500 35,400 36,100 30,100 Labor Regular Time 26,500 25,500 29,000 32,000 Overtime 2,000 2,000 2.400 2.400 Subcontract 5,000 5,000 5,000 5.000 The cost of producing each dialysis unit is RM3,500 on regular time, RM3,800 on overtime, and RM4,000 on a subcontract. Annual cost to carry a unit of kidney dialysis is RM500. Shortage cost is RM4,200 per unit. There will be no beginning inventory in quarter 1. Hire a worker costs RM2,000 and firing costs RM3,000 per worker. The company needs to hold at least 500 units as safety stock at the end of 4th quarter. (1) Based on the above scenario, develop a production plan. (8.5 marks) (ii) Compute the total cost of the plan. (6.5 marks) [Total: 30 marks]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started