fx D E F H On Saturday, Feb 27, the FDA issued approval for Johnson and Johnson's COVID-19 vaccine. The federal govemment has paid Johnson & Johnson 2 bilion dollars to research and develop the vaccine. The federal govemment has pre-ordered the vaccine at $10 per dose. Johnson & Johnson has promised the federal govemment a supply of 100 million doses of the vaccine by the end of June Everything stated above is true. Nothing about this problem is fabricated. Regular-time production is limited to 22 million doses per month Any additional production is met using overtime. Overtime production is limited to 4 milion doses per month. If regular time and overtime production can not satisfy the monthly demand, then backorders will occur. Regular-time production cost is $10 per dose. Overtime production cost is $12 per dose. Inventory carrying cost is $3 per dose per month and is based on AVERAGE inventory. Backorder cost is $5 per dose per month. Johnson & Johnson has 4 milion doses on hand at the beginning of March and must have 8 million doses on hand at the end of June as safety stock. This 8 milion is IN ADDITION to June demand, - USE A LEVEL PRODUCTION STRATEGY TO DETERMINE A PRODUCTION PLAN FOR Johnson & Johnson Fill in the tables below. All numbers are in millions. March 4 April May June Beginning Inventory Total Required Production Regular Time Production Overtime Production Demand Ending Inventory Average Inventory 8 38 44 6 Regular Time Production Cost PROBLEM 1 PROBLEM 2 + Ready MacBook esc F1 F2 F3 F4 F5 + X & fx B D E F G H Regular-Time Production Cost Overtime Production Cost Inventory Cost Backorder Cost If backorders occurred at the end of the previous period, indicate beginning inventory as a negative number. ** If backorders occur at the end of the month, Indicate them as negative ending inventory. *** When computing average inventory, if either beginning and/or ending inventory is negative, use zero instead of the negative value. What is the grand total cost of a level strategy, in dollars? 3 5 6 -7 20 PROBLEM 1 PROBLEM 2 + Ready MacBook esc F1 F2 F3 F4 F5 fx D E F H On Saturday, Feb 27, the FDA issued approval for Johnson and Johnson's COVID-19 vaccine. The federal govemment has paid Johnson & Johnson 2 bilion dollars to research and develop the vaccine. The federal govemment has pre-ordered the vaccine at $10 per dose. Johnson & Johnson has promised the federal govemment a supply of 100 million doses of the vaccine by the end of June Everything stated above is true. Nothing about this problem is fabricated. Regular-time production is limited to 22 million doses per month Any additional production is met using overtime. Overtime production is limited to 4 milion doses per month. If regular time and overtime production can not satisfy the monthly demand, then backorders will occur. Regular-time production cost is $10 per dose. Overtime production cost is $12 per dose. Inventory carrying cost is $3 per dose per month and is based on AVERAGE inventory. Backorder cost is $5 per dose per month. Johnson & Johnson has 4 milion doses on hand at the beginning of March and must have 8 million doses on hand at the end of June as safety stock. This 8 milion is IN ADDITION to June demand, - USE A LEVEL PRODUCTION STRATEGY TO DETERMINE A PRODUCTION PLAN FOR Johnson & Johnson Fill in the tables below. All numbers are in millions. March 4 April May June Beginning Inventory Total Required Production Regular Time Production Overtime Production Demand Ending Inventory Average Inventory 8 38 44 6 Regular Time Production Cost PROBLEM 1 PROBLEM 2 + Ready MacBook esc F1 F2 F3 F4 F5 + X & fx B D E F G H Regular-Time Production Cost Overtime Production Cost Inventory Cost Backorder Cost If backorders occurred at the end of the previous period, indicate beginning inventory as a negative number. ** If backorders occur at the end of the month, Indicate them as negative ending inventory. *** When computing average inventory, if either beginning and/or ending inventory is negative, use zero instead of the negative value. What is the grand total cost of a level strategy, in dollars? 3 5 6 -7 20 PROBLEM 1 PROBLEM 2 + Ready MacBook esc F1 F2 F3 F4 F5
