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CHAPTER 14
AGGREGATE SALES AND OPERA
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14-2
Question
Quiggly Pops
Quarter
Demand Forecast
1
70,000
2
100,000
3
50,000
4
150,000
Total
370,000
ANS
A. Level Production
Average Quarterly Demand
=(
)/
=370,000/4
=
Quarter
1
2
3
4
Total
Demand Forecast
70,000
100,000
50,000
150,000
370,000
Demand Forecast
70,000
100,000
50,000
150,000
370,000
$3,780,000
Cost of C. strategy
= (Regular production*Regular Production Cost)+(Worker
=
$3,720,000
D. Produce 90,000 in period 1 through 3, and 100,000 in period 4
Quarter
Demand Forecast
1
70,000
2
100,000
3
50,000
4
150,000
Total
370,000
Cost of C. strategy
= (Regular production*Regular Production Cost)+(Worker
=
$3,720,000
Conclusion So, based on these calculations, we can say that Quiggly Pops m
Quiggly Pops may choose to produce 70,000 in period 1, and 100
Quiggly Pops may choose to produce 90,000 in period 1 through
14-3
Rowley Apparel
Month
Demand Forecast
January
800
February
600
March
500
April
2,500
May
2,500
June
3,000
July
4,000
August
3,000
September
1,000
October
800
November
750
December
3,500
Total
22950
LUTHFIANA SUPANGKAT
CHAPTER 14
ATE SALES AND OPERATING PLANNING
1122003009
Beginning workforce =
Production per employee =
Hiring Cost =
Firing Cost =
Inventory Carrying Cost =
Regular Production Cost =
40
1250
$500
$500
$1
$10
ANSWER
=(
)/
370,000/4
92,500
Regular Production
92,500
92,500
92,500
92,500
370,000
Inventory
22,500
15,000
57,500
0
95,000
Regular Production
70,000
100,000
50,000
150,000
370,000
Workers Needed
Workers Hired
56
80
40
120
16
24
0
80
120
Workers Hired
56
80
80
80
16
24
0
0
40
Workers Hired
72
72
72
80
32
0
0
8
40
tions, we can say that Quiggly Pops may be choose the C or D strategy which both of them use the
o produce 70,000 in period 1, and 100,000 in period 2 through 4 which cost is $3,720,000 or
o produce 90,000 in period 1 through 3, and 100,000 in period 4 which cost is $3,720,000
Beginning Workforce
Subcontract capacity
Overtime capacity
Production rate/worker
Regular Wage Rate
Overtime wage rate
Subcontract Cost
Hiring Cost
Firing Cost
Holding Cost
Backordering Cost
8
unlimited
2,000
250
15
25
30
100
200
0.5
10
workers
units per quarter
per worker
per worker
per unit per quarter
per unit
ring Cost)
Workers Fired
0
0
40
0
40
Workers Fired
0
0
0
0
0
ring Cost)
Workers Fired
0
0
0
0
0
ring Cost)
which both of them use the minimum cost to produce the products.
cost is $3,720,000 or
cost is $3,720,000