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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Chapter 10, Problem 9P
Climate Control, Inc. makes expedition-quality rain gear for outdoor enthusiasts. Management prepared a
Use the Sales and Operations Planning with Spread sheets Solver in OM Explorer or develop your own spreadsheet models to address the following questions.
- Management is willing to authorize overtime in periods for which regular production and current levels of anticipation inventory do not satisfy demand. However, overtime must be strictly limited to no more than 20 percent of regular-time capacity. Management wants to avoid stockouts and backorders and is not willing to accept a plan that calls for shortages. Is it feasible to hold the workforce constant, assuming that overtime is only used in periods for which shortages would occur?
- Assume that management is not willing to authorize any overtime. Instead, management is will to negotiate with customers so that backorders may be used as a supply option. However, management is not willing to carry more than 5,000 suits from one month to the next in backorder. Is it feasible to hold the work-force constant, assuming that a maximum backorder of 5,000 suits may be maintained from month to month?
- Assume management is willing to authorize the use of overtime over the next 4 months to build additional anticipation inventory. However, overtime must be strictly limited to no more than 20 percent of regular-time capacity. Management wants to avoid stockouts and backorders and is not willing to accept a plan that calls for shortages. Is it feasible to hold the workforce constant, assuming that overtime is only used in months 1 through 4? If not, in which months would additional overtime be required?
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please help me with Question 3 thanks!
Demand forecasts for 2021 are as follows:
Month
Demand
Jan
140,000
Feb
78,900
Mar
85,800
Apr
89,100
May
123,600
Jun
136,350
Jul
120,450
Aug
106,950
Sep
121,950
Oct
135,750
Nov
87,000
Dec
93,300
Each worker can produce 900 products per month and is paid $1500 per month. Assume that at the end of last year, the company has 100 employees working on the production line. Hiring and layoff (firing) decisions are made at the beginning of each month, and associated costs are charged at that time. It costs the company $400 to hire and $800 to lay off a worker.
The company incurs holding cost for the amount of ending inventory in each month, and incurs backorder cost at the end of each month for any unfilled orders. The company incurs $2 per month for holding one unit in inventory and $4 per unit backorder.
1 Prepare a level aggregate plan. Under this level aggregate plan, how…
Climate Control, Inc., makes expedition-quality rain gearfor outdoor enthusiasts. Management prepared a forecast ofsales (in suits) for next year and now must prepare a produc-tion plan. The company has traditionally maintained a levelworkforce strategy. All nine workers are treated like familyand have been employed by the company for a number ofyears. Each employee can produce 2,000 suits per month.At present, finished goods inventory holds 24,000 suits. Thedemand forecast follows:Use the Sales and Operations Planning with SpreadsheetsSolver in OM Explorer or develop your own spreadsheetmodels to address the following questions.a. Management is willing to authorize overtime in pe-riods for which regular production and current lev-els of anticipation inventory do not satisfy demand.However, overtime must be strictly limited to no morethan 20 percent of regular-time capacity. Managementwants to avoid stockouts and backorders and is notwilling to accept a plan that calls for shortages.…
Climate Control, Inc., makes expedition-quality rain gearfor outdoor enthusiasts. Management prepared a forecast ofsales (in suits) for next year and now must prepare a produc-tion plan. The company has traditionally maintained a levelworkforce strategy. All nine workers are treated like familyand have been employed by the company for a number ofyears. Each employee can produce 2,000 suits per month.At present, finished goods inventory holds 24,000 suits. Thedemand forecast follows:
Use the Sales and Operations Planning with SpreadsheetsSolver in OM Explorer or develop your own spreadsheetmodels to address the following questions.
a. Management is willing to authorize overtime in pe-riods for which regular production and current lev-els of anticipation inventory do not satisfy demand.However, overtime must be strictly limited to no morethan 20 percent of regular-time capacity. Managementwants to avoid stockouts and backorders and is notwilling to accept a plan that calls for shortages.…
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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- Short term forecast can be used for the following operation. O a. Planning new facility O b. Preparing daily worker schedule O c. Introducing new product O d. Purchasing new equipmentarrow_forwardWhat is the constant workforce plan for the eight months ?arrow_forwardTax Prep Advisers, Inc., has forecasted the following staffingrequirements for tax preparation associates over the next12 months. Management would like three alternative staffingplans to be developed. The company currently has 10 associates. No more than 10new hires can be accommodated in any month because oflimited training facilities. No backorders are allowed, andovertime cannot exceed 25 percent of regular-time capacityon any month. There is no cost for unused overtime capac-ity. Regular-time wages are $1,500 per month, and overtimewages are 150 percent of regular-time wages. Undertime ispaid at the same rate as regular time. The hiring cost is $2,500per person, and the layoff cost is $2.000 per person.a. Prepare a staffing plan utilizing a level workforce strategy,minimizing undertime. The plan may call for a one-timeadjustment of the workforce before month 1.b. Using a chase strategy, prepare a plan that is consistent withthe constraint on hiring and minimizes use of overtime.c.…arrow_forward
- 1. What factors should be considered when selecting the appropriate capacity cushion? Howdoes the choice of capacity cushion relate to other decisions in operations management?To other functional areas? 2. Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?arrow_forwardplease answer within 30 minutes. its urgent.arrow_forwardUsing the accompanying log-log graph, answer the following questions: What are the implications for management if it has forecast its cost on the optimum line? What could be causing the fluctuations above the optimum line? If management forecast the tenth unit on the optimum line, what was that forecast in hours? If management built the tenth unit as indicated by the actual line, how many hours did it take?arrow_forward
- A company evaluate its hiring cost is RM150 per worker and layoff cost is RM200 per worker. Currently the company has 20 workers and based on forecast demand, the actual workers required to meet January demand is 25 workers. Calculate the hiring cost or layoff cost for that month. * O RM750 O RM350 O RM250 O RM1,000arrow_forwardPlease help to answer below with refer to attached. How would staffing for the opening of a new hotel or resort differ from that of an existing property? What data might Starwood rely upon to make sure the new property is not over- or understaffed in its first year of operation?arrow_forwardA company manufactures a product using two machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 225 units per day. Annual demand is currently 50,000 units. It is forecasted that within two years, annual demand will triple. How many cells should the company plan to produce to satisfy predicted demand under these conditions? Assume 240 workdays per year.arrow_forward
- What do you understand by capacity planning? Explain the decision tree modeling for capacity expansionarrow_forwardIdentify where performance gaps exist in your operations process by employing the Gap Model. How to improve the demand forecasting of the prepared foods department of a supermarket company?During the last few years, ABC has been having issues with the “prepared foods” department, which has X in total people as headcount (X operators and one supervisor). They are distributed to cover the X shift the store has per day. There are two sub-departments, prepared meals and prepared soups & salads. Each one could be sold in two presentations, packaged or self-serve buffet-like. Likewise, every meal prepared and packaged by the operators in the store only has an average of X of useful life and must be thrown away a day before its expiration. Among the issues in the department, five affect the performance of the store and category. The lack of production planning: the preparation of every meal is not based on sales, demand, days of the week, weekends, or seasonal campaigns. Instead, it is…arrow_forwardTybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations: a. Materials purchased on account, $29,800. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $ 2,960 $2,775 302 3,620 3,750 303 2,400 1,875 304 8,100 6,860 305 5,100 5,250 306 3,750 3,340 For general factory use 1,080 4,100 c. Factory overhead costs incurred on account, $5,500. d. Depreciation of machinery and equipment, $1,980. e. The factory overhead rate is $54 per machine hour. Machine hours used: Job Machine Hours 301 25 302 36 303 30 304 72 305 40 306 25 Total 228 f. Jobs completed: 301, 302, 303 and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,250; Job 302, $11,200; Job 303, $15,000. Required: 1. Journalize the entries to record the…arrow_forward
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