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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?


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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.

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

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