Chapter 14   Solutions

6. a.

 

Period

1

2

3

4

5

6

7

Total

 

Forecast

250

300

250

300

280

275

270

 

 

Output

 

 

 

 

 

 

 

 

 

Regular

250

275

250

275

275

275

250

1,850

 

Overtime

 

25

 

25

5

 

20

75

 

Subcontract

 

 

 

 

 

 

 

 

 

Output - Forecast

 

 

 

 

 

 

 

 

 

Inventory

 

 

 

 

 

 

 

 

 

Beginning

 

 

 

 

 

 

 

 

 

Ending

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

Backlog

 

 

 

 

 

 

 

 

 

Costs:

 

 

 

 

 

 

 

 

 

Output

 

 

 

 

 

 

 

 

 

Regular @ 40

$10,000

11,000

10,000

11,000

11,000

11,000

10,000

$74,000

 

Overtime @ 60

 

1,500

 

1,500

300

 

1,200

4,500

 

Subcontract

 

 

 

 

 

 

 

 

 

Inventory

 

 

 

 

 

 

 

 

 

Backorder

 

 

 

 

 

 

 

 

 

Total

$10,000

12,500

10,000

12,500

11,300

11,000

11,200

$78,500

 

b.

 

Period

1

2

3

4

5

6

7

Total

 

Forecast

250

300

250

300

280

275

270

1,925

 

Output

 

 

 

 

 

 

 

 

 

Regular

275

275

275

275

275

275

250

1,900

 

Overtime

 

 

 

 

 

 

 

 

 

Subcontract

 

 

 

 

5

 

20

25

 

Output - Forecast

25

-25

25

-25

0

0

0

 

 

Inventory

 

 

 

 

 

 

 

 

 

Beginning

0

25

0

25

0

0

0

 

 

Ending

25

0

25

0

0

0

0

 

 

Average

12.5

12.5

12.5

12.5

0

0

0

50

 

Backlog

0

0

0

0

0

0

0

0

 

Costs:

 

 

 

 

 

 

 

 

 

Regular

11,000

11,000

11,000

11,000

11,000

11,000

10,000

76,000

 

Overtime

 

 

 

 

 

 

 

0

 

Subcontract

 

 

 

 

250

 

1,000

1,250

 

Inventory

25

25

25

25

 

 

 

100

 

Backorder

 

 

 

 

 

 

 

0

 

Total

11,025

11,025

11,025

11,025

11,250

11,000

11,000

77,350

 

 

9. 

 

Period

1

2

3

4

5

6

Total

 

Forecast

160

150

160

180

170

140

960