EP PRIN.OF OPERATIONS MGMT.-MYOMLAB
EP PRIN.OF OPERATIONS MGMT.-MYOMLAB
10th Edition
ISBN: 9780134183848
Author: HEIZER
Publisher: PEARSON CO
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Chapter 10, Problem 1CS
Summary Introduction

Case summary:

Person K is the vice-president of operations at Company J, which received a request for quote of supplying 400 units per week. Employee must be permitted to perform the task for 17 times. The actual times observed were given below:

Number Actual time (minutes)
1 2.05
2 1.92
3 2.01
4 1.89
5 1.77
6 1.8
7 1.86
8 1.83
9 1.93
10 1.96
11 1.95
12 2.05
13 1.79
14 1.82
15 1.85
16 1.85
17 1.99

Performance rating is 115%, fatigue allowance is given as 8%, personal allowance is 6%, and delay allowance is 2%. Workday hour is 7.5 hours and the operators would be paid $12.50 per hour for 8 hours.

To determine: The sample size for an accurate standard.

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The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $35 per unit produced. The cost of layoffs is $60 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1300 in August requires a layoff (and related costs) of 0 units in August). Hire Month 1 July Demand 1300 Production (Units) Layoff (Units) Ending Inventory Stockouts (Units) 2 August 1150 3 September 1100 4 October 1600 5 November 1900 6 December 1900
The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Month Demand Production Inventory Subcontract (Units) 1 July 1300 1,100 0 2 August 1150 1,100 0 3 September 1100 1,100 0 4 October 1600 1,100 0 5 November 1900 1,100 0 6 December 1200 1,100 0
Please help me expand upon my research even more in detail please. Need help added more to mine from the photos please. Not sure what more I can add.
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