Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 2P
Bob Canton’s golf camp estimates the following staff requirements for its services over the next 2 years.
Each certified instructor puts in 480 hours per quarter regular time and can work an additional 120 hours over-time. Regular-time wages and benefits cost Canton $7,200 per employee per quarter for regular time worked up to 480 hours, with an overtime cost of $20 per hour. Unused regular time for certified instructors is paid at $15 per hour. There is no cost for unused overtime capacity. The cost of hiring, training, and certifying a new employee is $10,000. Layoff costs are $4,000 per employee. Currently, eight employees work in this capacity.
- Find a staffing plan using the level strategy that allows for no delay in service. It should rely only on overtime and the minimum amount of undertime necessary. What is the total cost of this plan?
- Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this plan?
- Propose a better plan and calculate its total cost.
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The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. The following is an excerpt from the final report
Net revenue $ 343,000
Cost of goods sold 302,000
Value of production materials on hand 42,500
Value of work-in-progress inventory 69,000
Value of finished goods on hand 28,000
Compute the inventory turnover ratio (ITR). (Round 1 decimal place)
Compute the weeks of supply (WS) (Do not round immediate calculation. Round 1 decimal place)
Charles Lackey operates a bakery in Idaho Falls,Idaho. Because of its excellent product and excellent location,demand has increased by 25% in the last year. On far too manyoccasions, customers have not been able to purchase the bread oftheir choice. Because of the size of the store, no new ovens can beadded. At a staff meeting, one employee suggested ways to loadthe ovens differently so that more loaves of bread can be baked atone time. This new process will require that the ovens be loadedby hand, requiring additional manpower. This is the only thingto be changed. If the bakery makes 1,500 loaves per month witha labor productivity of 2.344 loaves per labor-hour, how manyworkers will Lackey need to add? (Hint: Each worker works160 hours per month.)
Chapter 10 Solutions
Operations Management: Processes and Supply Chains (11th Edition)
Ch. 10 - List the types of costs incurred when employees...Ch. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Explain why management should be concerned about...Ch. 10 - The Barberton Municipal Division of Road...Ch. 10 - Bob Canton’s golf camp estimates the following...Ch. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Management at the Kerby Corporation has determined...Ch. 10 - Gretchen’s Kitchen is a fast-food restaurant...
Ch. 10 - Prob. 7PCh. 10 - Tax Prep Advisers, Inc. has forecasted the...Ch. 10 - Climate Control, Inc. makes expedition-quality...Ch. 10 - Prob. 11PCh. 10 - Gemini Inc. is using the Sales and Operations...Ch. 10 - Gerald Glynn manages the Michaels Distribution...Ch. 10 - Cara Ryder manages a ski school in a large resort...Ch. 10 - Prob. 15PCh. 10 - Prob. 17PCh. 10 - The Hickory Company manufactures wooden desks....Ch. 10 - Prob. 19PCh. 10 - The Mowry Machine Shop still has five jobs to be...Ch. 10 - If we use the same number of workers in each...Ch. 10 - Prob. 2AMECh. 10 - Prob. 3AMECh. 10 - Suppose the overtime cost is $3,300. What happens...Ch. 10 - Suppose the undertime cost is the same as the...Ch. 10 - Prob. 6AMECh. 10 - Prob. 1VCCh. 10 - Does Starwood employ a chase, level, or mixed...Ch. 10 - How would staffing for the opening of a new hotel...Ch. 10 - Explain the alternatives available to Darlene Fry...Ch. 10 - Prob. 2C
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Process selection and facility layout; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=wjxS79880MM;License: Standard YouTube License, CC-BY