A Firm Produces Two Models of Pagers, Products a and B

question 51

Essay

A firm produces two models of pagers, products A and B, on a produce-to-stock basis and is trying to develop a master production schedule for its operation. Safety stock is 30 for product A and 20 for product B. Fixed lot sizes are 70 for product A and 40 for product B. The beginning inventories are 30 for A and 30 for B. The demand for these products comes from many different sources, but the total weekly demand for each of the next six weeks is given as follows:
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Week }$
$\begin{array}{|c|c|c|c|c|c|c|}\hline \text { Product } & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { A } & 60 & 30 & 50 & 60 & 70 & 60 \\\hline \text { B } & 50 & 20 & 40 & 30 & 30 & 40 \\\hline\end{array}$
a. What is the production quantity for Product A for week 3?
b. What is the ending inventory for Product A for week 3?
c. What is the production quantity for Product B for week 5?
d. What is the beginning inventory for Product B for week 5?

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Definitions:

Profitability

A measure of the efficiency and effectiveness of a company in generating profit from its operations. It indicates the company's ability to produce income relative to its revenue, assets, equity, or other financial metrics.

Financial Rewards

Monetary benefits provided to employees or individuals as compensation for their services or to incentivize performance.

Creditworthiness

An assessment of a borrower's ability to repay debts based on their financial history and current financial status.

Intra-company Standards

Guidelines or policies adopted within a company to ensure consistency and quality across departments or units.