EBK OPERATIONS MANAGEMENT
EBK OPERATIONS MANAGEMENT
12th Edition
ISBN: 9780100283961
Author: Stevenson
Publisher: YUZU
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Chapter 10, Problem 1DRQ
Summary Introduction

To determine: The list of steps in the control process.

Introduction: Deviations from a standard is inevitable in a production process for which tolerance limits are fixed but products that exceed the tolerance limits are removed and corrected, which is known as the control process.

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Explanation of Solution

List of steps in the control process:

The steps in the control process are,

  • Define: It is the problem definition.
  • Measure: The measure of deviations.
  • Compare: The comparison of the actual with the standards.
  • Evaluate: Evaluation and establishment of control measures.
  • Corrective actions: Implementing measures to reduce the deviations.
  • Monitor results: Governing the corrective actions over a period of time.

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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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