Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
12th Edition
ISBN: 9780134742205
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 10, Problem 2AME
Summary Introduction

Interpretation:  the impact when the number of the constant workers is reduced while using a level planning strategy is to be determined.

Concept Introduction: The workforce is kept constant in a level planning strategy. The utilization of workers is varied to match the demand via overtime, under time (paid or unpaid) and vacation planning.

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The data collected in running a machine, the cost of which is Rs 60,000 are given below: Year 1 2 3 4 5 Resale Value 42,000 30,000 20,400 14,400 9,650 Cost of spares 4,000 4,270 4,880 5,700 6,800 Cost of labour 14,000 16,000 18,000 21,000 25,000 Determine the optimum period for replacement of the machine.

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Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)

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