Business Finance
WADRY Company Semiannual Production Plan Paper

NYU

Question Description

- Please make explanation for each tabular

- Explain how do you calculate the data, what does this tabular for? (step ?)

- 1 page

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Running Head: WADRY 1 WADRY - Production Plan Yiqiong Cui Professor. Lendry MBA - 690 07/06/2019 2 WADRY WADRY Company Semiannual Production Plan Production Plan This is a semi-annual (six months) production plan built on national demand and inventory. A country’s national demand is the sum of the quantity of goods to be demanded in the event that all the markets remain at equilibrium state at the period when the production plan becomes valid (Busing & Palocsay, 2016). WADRY Company semi-annual production plan considers factors that occupy the center stage in the production process. These include employee numbers, raw material quantities, machines, consumer demand for the product, working hours that will be utilized, and overtime. As a company, there are other factors that will also be instrumental during the production process, thereby deserves mention. This includes a factor such as seasonality which has a very impactful effect in the production and product demand (Thürer, 2014). The demand forecast for January might indicate a supply decrease owing to the fact that laundry demands in the households significantly reduces and also the fact that majority of expenditure by the households are usually channeled towards more integral issues such as fee payment, loan servicing, food, and health-care issues. WADRY Inc. Semi-annual Production Planning Inventory at the beginning The workforce at the beginning Standard of Labor Weekly (units/worker) 2400 15 150 Costs Labor Cost on regular time Overtime Cost of maintaining the Inventory Cost Total Total Per Unit Units Cost $8.50 25000 $237,500 $15.50 0.0 $0.0 $4.00 2500 $10,000 $7.50 0 $0 Hire $400.00 30 $12,000 Dismissal $650.00 15 $9,750 Backorders Total Costs $269,250 3 WADRY The monthly segmentation is shown below: Period 1 2 3 4 6 Demand 2000 5000 1800 Demand (Cumulative) 2000 8000 10000 11600 14600 19,100 400 5500 7300 8,900 11900 19500 Production 3000 3000 2600 Production in cumulative Inventory (Units in excess) Backorders (units in short) 3000 6000 8600 2600 00 00 00 00 00 00 00 00 00 00 00 Demand (Net Cumulative) 1600 5 3000 4500 Production/Inventory Planning Capacity Planning Workers Hired (at the beginning ) Workers Laid Off Workforce Available Regular Time Capacity (units) Overtime/Subcontracting (units) Total Production Capacity (units) ll 2000 3500 4500 10,600 14,100 18,600 15 0 0 0 0 0 3 0 0 0 0 0 12 12 12 12 12 12 3000 0 3000 3000 2600 0 0 3000 2600 2000 3500 0 0 2000 3500 4500 0 4500 4 WADRY Estimated labor hours Consumed WADRY labor hours consumed in the six-month period is the summation of each month’s total production capacity divided by the total number of employees less those laid-off. This is (3000 + 3000 +2600 +2000 + 3500 + 4500) / 12 which equals to 1550 labor hours. The labor hours consumed is the total number of hours spent on production regardless of either being regular time or overtime job. However, If a layoff occurs at WADRY during the period under consideration, then the change must be effected while calculating the labor hours consumed by production. Labor Requirements Given the standard work week is 150 units per worker; the company can only be able to produce a capacity of 18600 units in the six months. Nevertheless, the cumulative demand for the period is 25 000 units. This is an indication that the company is short of (25, 000 – 18 600) = 6 400 units to satisfy the demand. In order to fill the gap without the company relying on costly overtime arrangements, the number of extra employees required by WADRY Inc. is as shown below: 6 400/ (150 x 4 x 6) = 1.8 However, based on the results of the data calculation, this shows that in order to meet the target demand, WADRY needs to hire an averagely of 2 more employees to complete the original plan. References WADRY 5 Busing, M. E., & Palocsay, S. W. (2016). Operations management in the design and execution of MBA programs. Journal of Education for Business, 91(2), 75-82. Thürer, M., Stevenson, M., Silva, C., Land, M. J., Fredendall, L. D., & Melnyk, S. A. (2014). Lean control for make‐to‐order companies: Integrating customer enquiry management and order release. Production and Operations Management, 23(3), 463-476. ...
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Final Answer

Attached.

Running Head: WADRY

1

WADRY - Production Plan
Yiqiong Cui
Professor. Lendry
MBA - 690
07/06/2019

2

WADRY

WADRY Company Semiannual Production Plan
Production Plan
This is a semi-annual (six months) production plan built on national demand and
inventory. A country’s national demand is the sum of the quantity of goods to be demanded in
the event that all the markets remain at equilibrium state at the period when the production plan
becomes valid (Busing & Palocsay, 2016). WADRY Company semi-annual production plan
considers factors that occupy the center stage in the production process. These include employee
numbers, raw material quantities, machines, consumer demand for the product, working hours
that will be utilized, and overtime. As a company, there are other factors that will also be
instrumental during the production process, thereby deserves mention. This includes a factor
such as seasonality which has a very impactful effect in the production and product demand
(Thürer, 2014). The demand forecast for January might indicate a supply decrease owing to the
fact that laundry demands in the households significantly reduces an...

CASIMIR (23257)
University of Virginia

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