OPERATIONS MANAGEMENT CUSTOM ACCESS
OPERATIONS MANAGEMENT CUSTOM ACCESS
11th Edition
ISBN: 9780135622438
Author: KRAJEWSKI
Publisher: PEARSON EDUCATION (COLLEGE)
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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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PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below: Supply/Demand Info   Beginning        Jan           Feb           Mar           Apr           May           Jun      Forecast (demand)   53,800 53,400 51,000 63,800 49,200 59,000 Regular production               Overtime production               Subcontract production                      Ending inventory 4,000             Hired employees               Fired employees               Total employees 190             Cost variables are as follows: Cost Variables                           Labor cost/hour $16 Overtime cost/unit $39 Subcontracting cost/unit    $35 Holding cost/unit/month    $14 Hiring cost/employee $3,100 Firing cost/employee $5,500 Here is some additional relevant (capacity) information: Capacity Information                           Total labor hours/SSD 4 Regular production units/employee/month    200…
Discuss how a human resource professional can better gain the confidence of senior management and, thereby, become a key participant/player in the organization’s future.
PP.63 Jupiter, a large candy company, is having great success with its "Swan" family of candy bars.  Due to a number of factors they like to plan their production at least six months into the future.  The table below contains their demand projections (in tons) for April through September: Supply/Demand Info   Beginning        Apr           May           Jun           Jul           Aug           Sep      Predicted Sales   45,500 45,100 51,900 52,800 47,900 47,200 Regular production               Overtime production               Subcontract production                      Ending inventory 14,400             Hired employees               Fired employees               Total employees 423             Cost variables are as follows: Cost Variables                           Labor cost/hour $13 Overtime cost/ton $30 Subcontracting cost/ton    $28 Holding cost/ton/month    $14 Hiring cost/employee $3,700 Firing cost/employee $5,800 Here is some additional…
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