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astra-53 [7]
2 years ago
6

You are the General Manager of a US owned plant located in Northern Mexico. The firm manufactures semiconductors and uses tempor

ary employees from the local area to fulfill production labor requirements. Each quarter employees are hired and released depending upon production requirements and needs. The firm has a maximum storage capacity of 1,000,000 semiconductors. Agreements with the Mexican Government require that at least 325 workers must be on the payroll each quarter. There are currently 375 employees on the payroll and 120,000 semiconductors in storage. Sales forecast provided by the marketing department are estimated as follows for the upcoming year:
QUARTER PRODUCTION DAYS PREDICTED SALES FORECAST
First 59 940,000
Second 62 1,215,000
Third 55 860,000
Fourth 58 430,000

Inventory holding cost are $.25 per semiconductor per quarter. The holding cost applies to excess inventory after demand is fulfilled. Thus, assume inventory produced in the quarter to fulfill demand in that quarter is not subjected to holding cost.

The firm would like to have at least 100,000 semiconductors in stock at the end of the year. Each employee produces an average of 30 semiconductors per day. The cost of hiring a new worker is $200, and the cost of releasing a worker is $400. Determine a production plan that minimizes total cost and meets demand forecasts. This production plan must indicate the amount of inventory to produce, store and the amount of workers to hire and release each quarter. Use LP to determine a solution for this problem.
Business
1 answer:
Varvara68 [4.7K]2 years ago
4 0

Answer:

tables to display the required information:

\left[\begin{array}{ccccccc}$quarter&$beg workers&$hired&$lay-off&$total&$working days&$production\\1st&375&174&0&549&59&971730\\2nd&549&23&0&572&62&1063920\\3rd&572&0&50&522&55&861300\\4th&522&0&196&326&58&567240\\\end{array}\right]

\left[\begin{array}{ccccc}$quarter&$beginning&$production&$demand&$ending\\1st&120000&971730&940000&151730\\2nd&151730&1063920&1215000&650\\3rd&650&861300&860000&1950\\4th&1950&567240&430000&139190\\\end{array}\right]

Total cost:

hiring cost: (174 + 23)*200 = 39,400

lay-off cost: (50 + 196) * 400 = 98,400

inventory cost: ending inventory * $0.25 = 73,380

Total cost: $211,180

Explanation:

We solve this using Excel SOLVER which uses linear programming.

First, build a table for workers and production.

\left[\begin{array}{ccccccc}\\A&B&C&D&E&F&G\\$quarter&$beg workers&$hired&$lay-off&$total&$working days&$production\\1st&375&&&B + C - D &59&E \times 30 \times F\\2nd&E_1&&&B + C - D&62&E \times 30 \times F\\3rd&E_2&&&B + C - D&62&E \times 30 \times F\\4th&E_3&&&B + C - D&62&E \times 30 \times F\\\end{array}\right]

Then we build a table for inventory:

\left[\begin{array}{ccccc}\\A&B&C&D&E\\quarter&beginning&production&demand&ending\\1st&120000&&&B+C-D\\2nd&E_1&&&B+C-D\\3rd&E_2&&&B+C-D\\4th&E_3&&&B+C-D\\\end{array}\right]

Last the cell for total cost we want to minimize:

=SUM(hired) x 200 + SUM(lay-off) x 400) + SUM(ending inventory) x 0.25

Our requirement is:

1)ending inventory of 100,000 or more

2) total worker of 325 or above

3) fulfill all demand so ending must be zero or higher than zero

4) hiring and lay-off are Natural numbers (we can't hire 0.5 employees)

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Answer:

$147,000

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Since in the given situations many values are given with respect to the acquisition done by the seller, for tax turquoises, etc

But it is recorded at the purchase price i.e $147,000

8 0
3 years ago
The following inventory valuation errors have been discovered for Knox Corporation:
Whitepunk [10]

Answer:

Income +/- inventory adjustment

2015:   138,000 - 23,000 = 115,000

2016:  254,000 + 61,000 = 315,000

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Explanation:

<u>Inventory Identity:</u>

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As the mistake is on the right side it compensates by the other component which is COGS

<u><em>When the inventory is overstated</em></u> this means COGS is understated.

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<u><em>When the inventory is understated</em></u> this means COGS is overstated.

We record more cost of goods sold thefore our gross profit is lower making the net income fewer as well.

7 0
3 years ago
Arturo Company pays $4,000,000 cash and issues 20,000 shares of its $2 par value common stock (fair value of $50 per share) for
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Answer:

As follows:

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7 0
3 years ago
Select 3 goals or objectives that a leadership plan might include to achieve a solid business strategy. Multiple select question
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The leadership plans that must be included to achieve a solid business strategy are options A, C, and D. Option A is to increase sales; Option C is to attract new customers; and Option D is to reduce costs.

<h3>What is a business strategy?</h3>

An outline that is drawn by keeping in mind the set of goals, plans, or actions that are to be achieved by the company for a successful business in the market with the same kind of product or service is known as a business strategy.

In simple words, to make the growth of business continuous and to maintain the position of business or to grow it, a systematic plan is made on which all the employees of the firm work. This plan is known as a business strategy.

Therefore, 3 goals or objectives that a leadership plan might include to achieve a solid business strategy are option A: increasing sales power, Option C is to attract new customers, while Option D is to reduce costs.

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4 0
1 year ago
g Curtis invests $425,000 in a city of Athens bond that pays 6.25 percent interest. Alternatively, Curtis could have invested th
Advocard [28]

Answer:

The explicit tax would Curtis incur on interest earned on the Initech, Inc. bond is $7,395

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The computation of the explicit tax is shown below:

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5 0
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