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
$$\begin{array} { | l | l | } \hline \text { QUARTER } & \begin{array} { l } \text { FORECAST DEMAND PER } \\1,000 \text { GALLONS }\end{array} \\\hline 1 & 400 \\\hline 2 & 700 \\\hline 3 & 850 \\\hline 4 & 650 \\\hline \text { TOTAL: } & 2,600 \\\hline\end{array}$$
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?

• A) 29
• B) 33
• C) 35
• D) 40

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Definitions:

Anxiety Disorder

A category of mental health disorders characterized by excessive worry, fear, and anxiety that significantly interferes with daily functioning.

Dependent Personality Disorder

A mental health condition characterized by an overreliance on others for emotional support and decision making.

Cognitive-Behaviorist

A practitioner of a psychological approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Upbringing

The care, teaching, and training provided to a child by parents or guardians from infancy through adulthood.