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Refer to Solved Problem 1. Suppose another option is to use pan-time workers to assist during seasonal peaks. The cost per unit, including hiring and training, is $11. The output rate is 10 units per worker per period for all workers. A maximum of 10 part-time workers can be used, and the same number of part-time workers must be used in all periods that have part-time workers. The ending inventory in period 9 should be 10 units. The limit on backlogs is 20 units per period. Try to make up backlogs as soon as possible. Compute the total cost for this plan, and compare it to the cost of the plan used in the solved problem. Assume 20 full-time workers and regular monthly production= regular· capacity.
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Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
- List several alternatives for adjusting capacity. List severalalternatives for managing demandarrow_forwardUsing the cut-and-try method for aggregate operations planning, as described in the textbook, we can calculate ending inventory and safety stock as a percent of forecast demand. If beginning inventory = 300 units, the production requirement in units of output = 1,350 units, demand forecast = 1,500 units, then ending inventory and percent safety stock? a) 450 & 30% b) 150 & 20% c) 300 & 20% d) 150 & 10% e) 200 & 10%arrow_forward1. Foxie Owl’s Besty Bagel shop makes fresh bagels. She has to buy raw materials fresh every day for selling on that day. She wants to know exactly how much should she spend on raw materials. Foxie did some analysis over the past month and came back with the following numbers: Daily demand was equally likely to be 200, 225, 250, 275, or 300 bagels. What should be the number of bagels on hand to satisfy a Fill Rate requirement of 96%, rounded to next integer value? Group of answer choices 300 275 286 263 2. Suppose that instead of a discrete demand distribution, Foxie’s shop determines that the daily demand for bagels is normally distributed, with a mean of 250 and a standard deviation of 35. Foxie still wants a Fill Rate of 98%. What is the appropriate level of on-hand inventory for Foxie’s shop? Group of answer choices 263 274 257 270arrow_forward
- Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, washing, slicing, preserving, and finally packaging the prepared lettuce. Together, with help from vendors, they think they can adequately estimate demand, fixed costs, revenues, and variable cost per bag of lettuce. They think a largely manual process will have monthly fixed costs of $40,000 and variable costs of $2.00 per bag. A more mechanized process will have fixed costs of $72,000 per month with variable costs of $1.25 per bag. They expect to sell the shredded lettuce for $3.00 per bag. a) The break-even quantity in units for the manual process = enter your response here bags (round your response to the nearest whole number). b) The revenue…arrow_forwardNozone, Inc., a manufacturer of Freon recovery units (for automotive air conditioner maintenance), experiences a strongly seasonal demand pattern, driven by the summer air conditioning season. This year Nozone has put together a six-month production plan, where the monthly demands D, for recovery units are given in the table below. Each recovery unit is manufactured from one chassis assembly plus a variety of other parts. The chassis assemblies are produced in the machining center. Since there is a single chassis assembly per recovery unit, the demands in the table below also represent demands for chassis assemblies. The unit cost, fixed setup cost and monthly holding cost for chassis assemblies are also given in this table. The fixed setup cost is the firm's estimate of the cost to changeover the machining center to produce chassis assemblies, including labor and materials cost and the cost of disruption of other product lines. t D₁ C₁ A₁ h₂ 1 1,000 50 2,000 1 2 1,200 50 2,000 1 3 500…arrow_forwardPlease show work in excelarrow_forward
- Up, Up, and Away is a producer of kites and wind socks. Relevant data on the bottleneck operation in the shop for the upcoming fiscal year are given in the following table: Item Demand forecast Lot size Standard processing time Standard setup time Kites 30,000 units/year 25 units 0.3 hour/unit 3.0 hours/lot Wind Socks 10,000 units/year 70 units 0.5 hour/unit 4.0 hours/lot The shop works two shifts per day, 8 hours per shift, 210 days per year. Currently, the company operates four machines, and desires a 25 percent capacity cushion. How many machines should be purchased to meet the upcoming year's demand without resorting to any short-term capacity solutions? The number of additional machines required is. (Enter your response rounded up to the next whole number.)arrow_forwardOperations Management You are conducting a retrospective analysis for an Order-Up-To system with delivery lead time of 4 weeks (thus, the unsold inventory at the end of a week is carried over to the next week). The beginning inventory in week 4 is 200 units, and you have in-transit orders (yet to be delivered) placed in week 1, 2, and 3 of the amounts 120, 110, 100, respectively. If you set an order-up-to level of 650 units, then the order quantity in week 4 is 0 units (no order) 90 units 120 units 130 units 450 units none of the abovearrow_forwardPlease do not give solution in image format thankuarrow_forward
- Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 5555% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,800 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $800 and a per loaf ingredient cost of $0.35 Current multifactor productivity for 640 work hours per month =0.27loaves/dollar (round your response to three decimal places).arrow_forwardThe table gives the total cost schedule for oil changes at the local Jiffy Lube. What is Jiffy Lube's total fixed cost?arrow_forwardDevelop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,900; winter, 8,400; spring, 7,100; summer, 12,900. Inventory at the beginning of fall is 545 units. At the beginning of fall, you have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent backorders at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $800 for each temp; layoff, $1,600 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $25 per hour; overtime, $35 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quarter, produce to the full output of your regular workforce, even if that results…arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,