Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
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?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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.…
Find the constant workforce plan for the eight mont and total cost ?
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
Additional Business Textbook Solutions
Find more solutions based on key concepts
Many companies including Company OM tried to implement dynamic pricing in their ticketing system. The dynamic p...
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
2. In what circumstances might a market-pull approach or a technology-push approach to new-product design be th...
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
2. Identify four people who have contributed to the theory and techniques of operations management.
Operations Management: Sustainability and Supply Chain Management (12th Edition)
What is precedent, and how does it affect common law?
Business in Action (8th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Identify some of the important short term and long term considerations in forecasting capacity requirements? Explain each point thoroughly. What steps can organizations take to ensure a realistic determination of capacity requirements?arrow_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_forwardIn reference to an Human Resource Management course 4th year college course at Malone University using the following textbook: Gomez-Mejia, L. R., Balkin, D. B., Cardy, R. L., & Carson, K. P. (2020). Managing human resources. (9th ed.). Boston: Pearson Education. Which one of the following functions is typically not a human resource management responsibility? a. Analysis and design of work b. Demand forecasting c. Performance management and development d. Exit interviewsarrow_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
- Please 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_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
- State the advantage and disadvantage of varying the workforce in accordance to the predicted changes in demand requirements.arrow_forwardZhu Manufacturing is considering the Introduction of a family of new products. Long-term demand for the product group is somewhat predictable, so the manufacturer must be concemed with the risk of choosing a process that is inappropriate. Faye Zhu is VP of operations. She can choose among batch manufacturing or custom manufacturing, or she can invest in group technology, Zhu won't be able to forecast demand accurately until after she makes the process choice. Demand will be classified into four compartments: poor, fair, good, and excellebt The table below indicates the payoffs (profits) associated with each processidemand combination, as well as the probabilities of each long-term demand level: Demand Poor Fair Good Excellent Probability Batch Custom 0.15 0.40 -$300,000 $100,000 $1,200,000 $800,000 $400,000 $00,000 0.30 $1,200,000 $750,000 $500,000 0.15 $1,300,000 $800,000 $2,200,000 Group technology a) The alternative that provides Zhu the greatest expected monetary value (EMV) is…arrow_forwardPalisades Eco-Park is a small ecological reserve that admits a relatively small number of visitors on any day, but provides both educational and entertaining lectures, exhibitions, and opportunities to observe nature. The company has collected the following data on labor costs and number of visitors to the park over the last 30 months. Month Labor Cost Visitors 1 $ 26,720 2,600 2 $ 37,555 3,964 3 $ 41,361 4,299 4 $ 32,751 3,398 5 $ 36,022 3,630 6 $ 33,811 3,336 7 $ 33,139 3,372 8 $ 39,671 4,093 9 $ 39,912 4,222 10 $ 48,568 5,463 11 $ 43,627 4,551 12 $ 40,390 4,289 13 $ 35,644 3,694 14 $ 34,330 3,573 15 $ 38,260 3,836 16 $ 27,424 3,210 17 $ 31,732 5,195 18 $ 31,005 4,260 19 $ 28,552 3,689 20 $ 31,049 4,546 21 $ 26,588 3,058 22 $ 25,515 2,744 23 $ 29,899 4,997 24 $ 31,204 5,838 25 $ 29,099 3,964 26 $ 32,795 5,007 27 $ 29,650 4,572 28 $ 30,970 4,665 29 $ 29,429 3,841 30 $ 28,846 3,174 Required: a. Estimate the labor…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY