Manager Chris Channing of Fabric Mills nc., has developed the forecast shown in the table for bol…
Manager Chris Channing of Fabric Mills nc., has developed the forecast shown in the table for bol… | savvyessaywriters.org
Manager Chris Channing of Fabric Mills nc., has developed the forecast shown in the table for bolts of cloth. The figures are in hundreds of bolts. The department has a normal capacity of 275000) bolts per month, except for the seventh month, when capacity will be 250(00) bolts. Normal output has a cost of $40 per hundred bolts. Workers can be assigned to other jobs ifproduction is less than normal. The beginning inventory is zero bolts. 2 3 4 5 6 7 Total Month Forecast 250 300 280 275 270 925 a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is S60 per hundred bolts. (Negative amounts should be indicated by a minus sign. Leave no cells blank be certain to enter “0” wherever required. Omit the sign in your response.) Period Forecast 250 300 2800 275 Output Regular Overtime Subcontract Output Forecast Inventory Beginning Ending Average Backlog Costs Output Regular Overtime Subcontract Inventory Backorder Total b. Would the total cost be less with regular production with no overtime, but using a subcontractor to handle the excess above normal capacity at a cost of $50 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is S2 per hundred bolts. (Round your Average values to 1 decimal place. Negative amounts should be indicated by a minus sign. Leave no cells blank be certain to enter “0” wherever required. Omit the sign in your response.) 1 2 3 4 5 6 7 Period Forecast 250 2500 280 275 270 Output Regular Overtime Subcontract Output Forecast nventory Total 1,925 Total 925
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