Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

home / study / business / operations management / questions and answers / mba inc. assembles lawn mowers and snow blowers . . . Question:

home / study / business / operations management / questions and answers / mba inc. assembles lawn mowers and snow blowers ... Question: MBA Inc. assembles lawn mowers and snow blowers fr... Bookmark MBA Inc. assembles lawn mowers and snow blowers from subassemblies and component parts provided by reliable vendors. Both products (end items) utilize the same small engines, many of the same parts and require the same assembly time and employee labor skills. On December 20, the Production Planning Committee of MBA Inc. is due to adopt an aggregate plan for the coming year. The available planning information is as follows: Information: Demand Forecasts Quarter Lawn Mowers Snow Blowers Q - I 10,0009,000 Q - II 15,0007,000 Q - III 16,00019,000 Q - IV 3,00010,000 Quarter - I Beginning Inventory: Mowers 600; blowers 400 Output and Costs: Regular Time $5.00 per unit Overtime $7.50 per unit Subcontract $10.00 per unit Part Time $12.00 per unit Inventory $4.00 per unit per quarter based on avg. inventory during each quarter Backorders $8.00 per unit per period (based on backorders at end of period) Hiring $100.00 per employee (Full-Time or Part-Time) Layoff $500.00 per employee (no cost if Part-Time) Production Rates: Regular 500 units per Full-Time employee per quarter (of either unit) Overtime up to 200 units per Full-Time employee per quarter (of either unit) Part Time 400 units per Part Time employee per quarter (of either unit) Production work force: As of the first of the year, the production work force consists of 44 Full-Time employees. Additional Assumptions: 1) Part Time employees may not work overtime 2) Assume 100% utilization of Full-Time employees on regular time and of Part Time employees at all times (i.e., all such employees on the payroll during a period produce at the rates shown under Production Rates).3) Overtime utilization of Full-Time employees can be on an as needed basis subject to the limitation on maximum overtime output shown under Production Rates. The V.P of Marketing is not all that happy with the large volume of backorders in your plan from question 1A . She asks that you develop a plan that requires no backorders at any time during the year. The V.P. of manufacturing says that he will insist that any such plan specify level output each quarter. The V.P. of Finance states that you no longer need to have a Qtr. IV ending inventory of zero but it should be as low as possible. Use the original demand data, beginning inventory, etc. from problem 1. Develop a plan that will meet the requirements of all three V.P

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

General Managers In Action Policies And Strategies

Authors: Francis Joseph Aguilar

2nd Edition

0195073673, 978-0195073676

More Books

Students also viewed these General Management questions

Question

Date the application was sent

Answered: 1 week ago

Question

6 What is the balanced scorecard method?

Answered: 1 week ago