they are requiring all of b to be filled out. Problem 11-6 Manager Chris Channin
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Question
they are requiring all of b to be filled out.
Problem 11-6 Manager Chris Channing of Fabric Mills, Inc., 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 275 00) 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 asslgned to other Jobs If production is less than normal. The beginning Inventory is zero bolts. Forecast 308 308 275 270 1,925 a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is $60 per hundred bolts. Negative amounts should be Indicated by a minus sign. Leave no cells blank be certain to enter "O" wherever required. Omit the "$" sign in your response.) Forecast 300 300 278 Subcontract Output Forecast Deginning Ending Average Backlog Costs: 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 carryling cost Is $2 per hundred bolts. (Round your Average valuesto 1 decimal place. Negative amounts should be Indicated by a minus sign. Leave no cells blank - be certaln to enter "O" wherever required. Omit the "$" sign in your response.) Forecast 258 300 258 308 288 270 Output Forecast Deginning Ending Average Backlog Costs: Backorder TotalExplanation / Answer
Problem 11-6
b)
Month
1
2
3
4
5
6
7
Total
Forecast
250
300
250
300
280
275
270
1925
Output- Regular
275
275
275
275
275
275
250
Output–Overttime
Subcontract
5
20
Output-Forecast
25
-25
25
-25
-5
0
-20
Inventory
Beginning Inventory
0
25
0
25
0
0
0
Ending Inventory
25
0
25
0
0
0
0
Average Inventory
12.5
12.5
12.5
12.5
0
0
0
Backlog
.
Costs
Regular Time
11000
11000
11000
11000
11000
11000
10000
76000
Overtime Time
Subcontract
250
1000
1250
Inventory
25
25
25
25
100
Backlog
Total Costs
11,025
11,025
11,025
11,025
11,250
11,000
11,000
$77,350
Month
1
2
3
4
5
6
7
Total
Forecast
250
300
250
300
280
275
270
1925
Output- Regular
275
275
275
275
275
275
250
Output–Overttime
Subcontract
5
20
Output-Forecast
25
-25
25
-25
-5
0
-20
Inventory
Beginning Inventory
0
25
0
25
0
0
0
Ending Inventory
25
0
25
0
0
0
0
Average Inventory
12.5
12.5
12.5
12.5
0
0
0
Backlog
.
Costs
Regular Time
11000
11000
11000
11000
11000
11000
10000
76000
Overtime Time
Subcontract
250
1000
1250
Inventory
25
25
25
25
100
Backlog
Total Costs
11,025
11,025
11,025
11,025
11,250
11,000
11,000
$77,350
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