Create a level plan with a zero ending inventory for the forecast shown in the table. There is no beginning inventory and regular production capacity is 300 units
Overtime costs $15 extra and is limited to 25 units per month and subcontracting is limited to 60 units per month and costs $10 per unit. Back orders cost $50 per unit and there is a cost of $5 per month to hold a unit in inventory. What is the total plan cost?
Month Forecast Regular Overtime Subcontracting Ending Inventory
January 250
February 300
March 400
April 350
What will be an ideal response?
Answer: The total demand forecast for the planning period is 1300 units, so 325 units should be produced every month. This is 25 units over capacity so they should be made as cheaply as possible, in this case subcontracting. Total plan cost for this four month period is 100($10) + 200($5) = $2000.
Month Forecast Regular Overtime Subcontracting Ending Inventory
January 250 300 25 75
February 300 300 25 100
March 400 300 25 25
April 350 300 25 0
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List and describe two dimensions of Hofstede’s National Diversity Dimensions.
What will be an ideal response?
With the introduction of an individual incentive program, Aleksander feels like he is competing with the other members of his team instead of working together with them. While the individual incentive plan could mean more money for some members of the team, most members of the team feel the same way Aleksander does. They wish they could go back to working together for a group incentive. Which disadvantage of individual incentives does this illustrate?
A. Many jobs have no direct output. B. Individual incentives may motivate undesirable employee behaviors. C. The record-keeping burden needed for individual incentives is high. D. Individual incentives may not fit organizational culture.
Which of the following statements is false?
a. Favorable variances are recorded in the general journal as debits and unfavorable variances are recorded as credits. b. Variances are closed out at the end of each accounting period. c. Only standard costs are recorded in the inventory accounts. d. A variance is the difference between an actual cost and a standard cost.
Which of the following tells management "when" to order?
a. order point. b. the Pareto inventory analysis. c. safety stock level. d. the economic order quantity.