When exchange rates change:

Answer:

The correct answers are b. As batch size grows, lead time shrinks and d. The Product Owner influences batch size, while the Development Team determines utilization.

Explanation:

Generally, when the batch size increases, lead time also rises, as smaller batches can be processed quicker compared to larger ones, which take extra time. Additionally, the product owner influences the batch size based on market demand, and the development team conducts utilization tests to inform their decisions that affect how resources are utilized.

A) For the first half of the year, the monthly demand averages to 560 / 6 = 93.33
Order size for the first six months can be calculated using: Sqrt(2 x A x O / C)
Where:
O is the cost of placing an order
C is the carrying cost per order
= Sqrt(2 x 93.33 x 55 / 2) = 71.65, rounded to 72
For the second half of the year, the monthly demand is 900 / 6 = 150
Order size for the second six months:
= Sqrt(2 x A x O / C)
= Sqrt(2 x 150 x 55 / 2)
= 90.83 or 91
B) For the first six months: Total monthly cost = (Q/2) x H + (d/Q) x S= (72 / 2) x 2 + (93.33 / 72) x 5 = $143.30 With a $10 discount, S = $ 55 - $10 = $ 45
Monthly TC at Q = 50 = (50/2) x 2 + (93.33 / 50)x 45 = $134.0 Monthly TC at Q = 100 = (100/2) x 2 + (93.33 / 100) x 45 = $142.00
Monthly TC at Q = 150 = (150/2) x 2 + (93.33 / 150) x 45 = $178.00
C)
Indeed, the manager should take advantage of this proposal and order Q = 50 units for the first six months. For the second six months, d = monthly demand = 900 / 6
= 150,

H = $2.00 for each unit monthly, S = $55, & EOQ = 91.
Calculating Monthly TC (Q = 91):
= (91/2) x 2 + (150/91) x 55
= $181.66
Monthly TC (Q = 50):= (50/2)x2 + (150/50)x 45= $185 Monthly TC (Q = 100) = (100/2) x 2 + (150/100) x 45= $167.50
Monthly TC (Q = 150)= (150/2) x 2 + (150/150) x 45= $195
 

Answer:

The labor cost each month this year is $53,000.

Explanation:

Step 1: Calculate the total labor cost for last year

T=C×N

where;

T=total yearly labor cost from last year

C=cost of labor for each month

N=number of months within a year

In our scenario;

T=unknown, calculation needed

C=$44,000 monthly

N=12 months

Substituting;

T=(44,000×12)=$528,000

Step 2: Calculate this year’s total labor cost

This year’s labor cost can be represented as;

Y=T+I

where;

Y=total labor cost for this year

T=previous year’s labor cost

I=increased cost from last year to this year

<pIn our scenario;

Y=unknown, calculation needed

T=$528,000

I=$108,000

Substituting;

Y=(528,000+108,000)=$636,000

Step 3: Calculate the monthly labor cost for this year

This year’s monthly labor expense= this year’s labor cost/number of months per year

where;

Monthly labor cost for this year=unknown, calculation pending

This year’s labor cost=$636,000

Months in a year=12

Substituting;

Monthly labor cost for this year=(636,000/12)=$53,000

The monthly labor expense for this year is $53,000.