Examlex

Solved

The Academic Company Mixes and Bottles a High-Energy Beverage in Various

question 74

Multiple Choice

The Academic Company mixes and bottles a high-energy beverage in various container types and sizes for college students. The aggregate forecast for the next four quarters (1 year) in thousands of gallons is as follows:
Table 1
 QUARTER  FORECAST DEMAND PER 1,000 GALLONS 1400270038504650 TOTAL: 2,600\begin{array} { | l | l | } \hline \text { QUARTER } & \begin{array} { l } \text { FORECAST DEMAND PER } \\1,000 \text { GALLONS }\end{array} \\\hline 1 & 400 \\\hline 2 & 700 \\\hline 3 & 850 \\\hline 4 & 650 \\\hline \text { TOTAL: } & 2,600 \\\hline\end{array}
Academic's management makes the following assumptions:
\bullet Each employee works 550 standard hours of regular time each quarter.
\bullet On average, it takes 27 hours to produce and package 1 unit (1,000 gallons) .
\bullet Regular-time labor costs $6.00/hour; overtime labor costs $9.00/hour.
\bullet Inventory-holding cost is approximately $4.50/unit (1,000 gallons) per quarter based upon the ending inventory per quarter.
\bullet Because of extremely hot weather, there is no beginning inventory available to start Quarter 1.
\bullet Management wants a constant work force (no hiring or firing) .
\bullet Managers have also decided to always round up the number of employees needed to the next whole integer, i.e., 37.2 yields 38 employees.
______________________________________________________________________________
-Using the data in Table 1, if management will allow a maximum of 30 percent overtime, how many workers are needed for Quarter 3?


Definitions:

Catastrophizes

Catastrophizes refers to the tendency to overestimate the potential negative outcomes of a situation or event.

Irrational Process

Mental activities beyond logical reasoning, often influenced by emotions or subconscious thoughts.

Activating Event

In cognitive-behavioral therapy, an external situation or internal mental event that triggers a chain of thoughts, emotions, and behaviors.

Cognitive Dissonance

The state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.

Related Questions