An Electronics Manufacturer Makes Video Security Systems for Parking Lots

question 51

Essay

An electronics manufacturer makes video security systems for parking lots. Demand estimates for the next four quarters are 15, 9, 23, and 17 units. Prepare an aggregate plan that uses inventory, regular time, overtime, and back orders. Subcontracting is not allowed. Regular time capacity is 12 units for quarters 1 and 2, 15 units for quarters 3 and 4. Overtime capacity is 6 units per quarter. Regular time cost is $20,000 per system, while overtime cost is $30,000 per unit. Back order cost is $2000 per system per quarter; inventory holding cost is $500 per unit per quarter. Beginning inventory is zero.
Complete the table of data inputs for solving this aggregate planning problem with the transportation method. Specifically, how many sources are there, and how many destinations?
What is the supply from each source, and the demand of each destination?
What is the cost of each source-destination pair?

Analyze the net advantage of leasing (NAL) and how it influences financial decision-making.

Understand the concept of residual value and its effect on leasing decisions.

Distinguish between the financial treatment and risks of leveraged versus unleveraged leases.

Comprehend the financing aspect of leasing and how it compares to other financing methods.

---

Definitions:

Ecological Theory

A framework that explores how individuals interact with their environments, focusing on how these interactions influence development and behavior.

Ethnic Relations

The ways in which ethnic groups interact with one another within a society, which can range from peaceful coexistence to conflict and discrimination.

Park

A public or private area set aside for recreational use, conservation, or enjoyment of nature, often equipped with amenities for visitors.

Ethnicity

A social construct defining groups of people based on shared cultural, linguistic, or ancestral traits.