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please show on excel with steps 1. The Bi-Product Company produces two products (A and B). At the end of this year, the company is
please show on excel with steps
1. The Bi-Product Company produces two products (A and B). At the end of this year, the company is developing a sales and operations plan for the coming year. Both products (end items) utilize the same engines and many of the same parts. They require the same assembly time and employee labor skills. The available planning information is as follows: Demand Forecasts Quarter Product A 1 5,000 2 6,500 3 6,200 4 6,800 Product B 6,500 5.400 5,500 6,000 Anticipated Quarter 1 Beginning inventory 1,000 units of Product A 500 units of Product B Production and costs Regular time Overtime Subcontract Part-time Inventory $20.00 per unit $25.00 per unit $35.00 per unit $30.00 per unit $1.00 per unit per quarter (based on average Inventory during each quarter) $50.00 per unit per quarter (based on back orders at end of quarter) $200.00 per full-time employee (no cost if part-time) $2,000.00 per full-time employee (no cost if part-time) Back order Hiring Layoff Production rates Regular 100 units per full-time employee per quarter (of either unit) Overtime (max.) 10 units per full-time employee per quarter (of either unit) Part-time 20 units per part-time employee per quarter (of either unit) Initial workforce size 116 full-time employees (beginning of quarterl) Additional assumptions 1. Part-time employee may not work overtime. 2. Assume 100% utilization of employees on regular time (i.e., all employees on the payroll during a period produce at least 100 units). If overtime is used, up to another 10 units can be produced per employee. Develop an operations plan that utilizes a level, or constant rate of output each quarter using full-time regular employees only. Ending inventory and back orders for quarter 4 must be equal to zero. Summarize the plan, its costs, and its consequences. Sales contribution for both products are equalStep by Step Solution
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