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1) The forecasted demand for fudge for the next four months is 290, 140, 160, and 120 pounds

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1) The forecasted demand for fudge for the next four months is 290, 140, 160, and 120 pounds.

A. What is the recommended production rate if a level strategy is adopted with no backorders or stockouts? What is the ending inventory for month 4 under this plan? Round your answers to the nearest whole number.

Production rate:  pounds/month________

Ending inventory (month 4):  pounds_________

B. What is the level production rate with no ending inventory in month 4? Round your answer to one decimal place.

Production rate:  pounds/month_________

 

2.Irene's Kitchen & Catering Service sells three kinds of cakes—single, double, and triple layers. The product mix is 10% single layer, 40% double layer, and 50% triple layer. The bills of material are as follows:

 

Single Layer Cake	Double Layer Cake	Triple Layer Cake
Cake mix—1.14 lbs.	Cake mix—1.60 lbs.	Cake mix—3.22 lbs.
Butter—0.2 cups	Butter—0.3 cups	Butter—0.4 cups
Eggs—4	Eggs—5	Eggs—6

 

A. Irene's forecast for cakes for the next two months is 50 cakes a day or 2,400 cakes (50 cakes/day × 24 workdays/month × 2 months). How much cake mix does she need? Do not round intermediate calculations. Round your answer to the nearest whole number.
____________ lbs.

B. How much butter is needed? Do not round intermediate calculations. Round your answer to the nearest whole number.
Cups__________

C. How many eggs are needed? Do not round intermediate calculations. Round your answer to the nearest whole number.
 eggs__________

 

3. The Westerbeck Company manufactures several models of automatic washers and dryers. The projected requirements over the next year for their washers are shown in the table below:

 

Month	J	F	M	A	M	J	J	A	S	O	N	D
Requirement	800	940	710	690	1,270	1,390	900	1,260	730	490	690	1,170

 

Current inventory is 140 units. Current capacity is 970 units per month. The average salary of production workers is $1,000 per month. Material costs $150/unit. Each production worker accounts for 15 units per month. Overtime is paid at time and a half. Any increase or decrease in the production rate costs $40/unit for tooling, setup, and line changes. This does not apply, however, to overtime. Inventory-holding costs are $20 per unit per month. Lost sales are valued at $75 per unit. Compare the costs of level and chase demand production plans using the Agg Plan - Level and Agg Plan - Chase Excel templates. Round all your answers for cost values to the nearest cent and all other answers to the nearest whole number. Do not round intermediate calculations. If your answer is zero, enter "0".

A. Level production plan:

Fill in blanks

 

					Cumulative
			Cumulative		Product	Ending	Lost
Month	Demand		Demand	Production	Availability	Inventory	Sales
January	800
February	940
March	710
April	690
May	1,270
June	1,390
July	900
August	1,260
September	730
October	490
November	690
December	1,170
Average					Maximum

 

 

	Total Production	Total Inventory	Total Lost Sales	Total Overtime	Total Undertime	Total Rate Change
	Cost	Cost	Cost	Cost	Cost	Cost
	$	$	$	$	$	$

 

Total cost: $  __________

 

 

 

B. Chase demand production plan:

Fill in blanks 

 

					Cumulative
			Cumulative		Product	Ending	Lost
Month	Demand		Demand	Production	Availability	Inventory	Sales
January	800
February	940
March	710
April	690
May	1,270
June	1,390
July	900
August	1,260
September	730
October	490
November	690
December	1,170
Average					Maximum

 

 

	Total Production	Total Inventory	Total Lost Sales	Total Overtime	Total Undertime	Total Rate Change
	Cost	Cost	Cost	Cost	Cost	Cost
	$	$	$	$	$	$

 

Total cost: $ _______ 

 

 

C. Fill in blanks

The total cost for level strategy is -Select-higherlowerItem 141 than the total cost for chase strategy.

For the level strategy, compare the normal production rate of 970 units per month with the average monthly demand rounded to a whole number. Round all your answers for cost values to the nearest cent and all other answers to the nearest whole number. Do not round intermediate calculations. If your answer is zero, enter "0".

Level production plan with the average monthly demand rounded to a whole number:

 

					Cumulative
			Cumulative		Product	Ending	Lost
Month	Demand		Demand	Production	Availability	Inventory	Sales
January	800
February	940
March	710
April	690
May	1,270
June	1,390
July	900
August	1,260
September	730
October	490
November	690
December	1,170
Average					Maximum

 

 

	Total Production	Total Inventory	Total Lost Sales	Total Overtime	Total Undertime	Total Rate Change
	Cost	Cost	Cost	Cost	Cost	Cost
	$	$	$	$	$	$

 

Total cost: $  _______