OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
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Chapter 11, Problem 11DQ
Summary Introduction
To determine: The options that the shop should consider for aggregate and the analysis of the options. Determine the data that must be collected.
Introduction:
Capacity planning is the process of planning the required production output based on the requirement or the demand that is predicted.
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A barbershop has been using a level workforce of barbers five days per week, Tuesday through Saturday. The barbers have considerable idle time on Tuesday through Friday, with certain peak periods during the lunch hours and after 4 p.m. each day. On Friday afternoon and all day Saturday, all the barbers are very busy, with customers waiting a substantial amount of time and some customers being turned away. What options should this barbershop consider for aggregate planning? Howwould you analyze these options? What data should be collected, and how should the options be compared?
A barbershop has been using a level workforce of barbers five days per week, Tuesday through Saturday. The barbers have considerable idle time on Tuesday through Friday, with certain peak periods during the lunch hours and after 4 p.m. each day. On Friday afternoon and all day Saturday, all the barbers are very busy, with customers waiting a substantial amount of time and some customers being turned away. What options should this barbershop consider for aggregate planning? How would you analyze these options? What data should be collected, and how should the options be compared?
You do not have to address all questions. Please select one or two to discuss.
Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through
December. The company has gathered the following data. There are 8 hours of production per day.
Holding cost
Subcontracting
Regular-time labor
Overtime labor
Hiring cost
Layoff cost
Costs
$8/disk drive/Month
$80/disk drive
Month
$12/hour
$18/hour (above 8 hours)
$40/worker
$80/worker
0 June
1 July
2 August
3 September
4 October
5 November
6 Doramhar
What will each of the two following strategies cost?
a) Vary the workforce so that production approximates demand. Chua had eight workers on board in June. (Enter
all responses as whole numbers).
Demand*
Fill in the table below. (Enter all responses as whole numbers. In the hire/layoff column, use positive numbers for
hires-plus signs omitted; negative numbers for layoffs.)
400
500
550
700
800
700
Current workforce (June)
Labor-hours/disk drive
Workdays/month
Beginning
Inventory
150
Other Data
20 days
Beginning Inventory
150 disk…
Chapter 11 Solutions
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - A school district has forecast student enrollment...Ch. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - SOP or aggregate planning sometimes is confused...Ch. 11 - The XYZ Company manufactures a seasonal product....Ch. 11 - Prob. 8DQCh. 11 - Every firm has multiple objectives such as good...Ch. 11 - Prob. 10DQ
Ch. 11 - Prob. 11DQCh. 11 - Suppose we are considering the question of how...Ch. 11 - The Ace Steel Mill estimates the demand for steel...Ch. 11 - A barbershop has the following demand for haircuts...Ch. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - eXcel The Chewy Candy Company would like to...Ch. 11 - A company produces to a seasonal demand, with the...Ch. 11 - Prob. 8PCh. 11 - Question: 9. The Restwell Motel in Orlando,...Ch. 11 - eXcel 10. The Ban go Toy Company produces several...Ch. 11 - A small textile company makes several types of...Ch. 11 - Valley View Hospital faces somewhat seasonal...
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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
- Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day. You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua that you can do a better job at aggregate planning than her current staff. She said, "Fine. You do that, and you have a 1-year contract." To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Other data Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory Ending Inventory *Note that there is no holding cost for June. 8 people 4 hours 20 days 150 disk drives* O disk drives Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive…arrow_forwardHow does aggregate planning in service differ fromaggregate planning in manufacturing?arrow_forwardCapacity 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_forward
- For capacity planning, how may a spreadsheet be utilized?arrow_forwardThe planner at a company that makes garden tractors is about to prepare an aggregate production plan that will cover the next 6 months. She has collected the following information: Month Demand Forecast Above the available capacity through permanent workforce 1 1,000 2 1,000 3 2,000 4 3,000 5 4,000 6 1,000 Total: 12,000 Production per month = 20 units per worker Initial inventory = 500 units Desired ending inventory (at the end of month 6) = 0 units Cost: Hire cost = $500 per temporary worker Inventory = $10 per tractor per month Backorder = $150 per tractor per month The optimum aggregate plan is: Month 1 2 3 4 5 6 Total Forecast Demand above regular capacity 1,000 1,000 2,000 3,000 4,000 1,000 12,000 # of temporary workers required 50 50 100 150 200 50 Temp. Workers hired 25 25 50 75 0 0 Temp. workers laid off 0…arrow_forwardIn doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with: а. no choice is correct O b. gallons of paint, but be concerned with the different colors to be produced c. all the different sizes and all the different colors by size O d. gallons, quarts, pints, and all the different sizes to be produced e. just gallons of paint, without concern for the different colors and sizes >> W OneDrive 86%arrow_forward
- Jim-O's fast focus restaurant is opening up a new branch. Based on demand forecast the following service personnel levels are anticipated. What is the number of employees needed for Thursday-Friday pair? Days of Week Monday Tuesday Wednesday Thursday Friday Saturday Sunday Staff needs 5 4 3 4 6 6 5arrow_forwardDefine "what-if analysis." How can a spreadsheet be used to plan capacity?arrow_forwardExplain the relationship between priority versus capacity that must exist within the production planning and control area of an industry.arrow_forward
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