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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Textbook Question
Chapter 11, Problem 11P
A small textile company makes several types of sweaters. Demand is very seasonal, as shown by the following quarterly demand estimates. Demand is estimated in terms of standard hours of production required.
All hour of regular time costs the company $12. Employees are paid $18 per hour 011 overtime, and labor can be subcontracted from the outside at $14 per hour. A maximum of 1000 overtime hours is available in any month. A change in the regular level of production (increase or decrease) incurs a onetime cost of $5 per hour for adding or subtracting an hour of labor. It costs 2 percent per month to carry an hour of finished work in inventory. Materials and overhead costs in inventory are equal to the direct labor costs. At the beginning of the fall quarter, there are 5000 standard hours in inventory and die workforce level is equivalent to 10,000 standard hours.
- a. Suppose management sets the level of regular workers for the year equal to the average demand and subcontracts out the rest. What is the cost of this strategy'?
- b. What is the cost of a chase strategy?
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b-1.
Activity
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b-2. Identify the critical activities, and determine the duration of the project.
The critical activities are .
The forecast for each week of a four-week schedule is 50 units. The MPS rule is to schedule production if the projected on-hand
Inventory would be negative without it. Customer orders (committed) are follows:
Week
Customer Order
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35
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Use a production lot size of 75 units and no beginning Inventory. Determine the available-to-promise (ATP) quantities for each period.
Note: Leave no cells blank - be certain to enter "0" wherever required.
Period
ATP
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Prepare a master schedule given this information: The forecast for each week of an eight-week schedule is 60 units. The MPS rule is
to schedule production if the projected on-hand Inventory would be negative without it. Customer orders (committed) are as follows:
Week Customer Orders
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36
28
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1
Use a production lot size of 85 units and no beginning inventory.
Note: In the ATP row, enter a value of 0 (zero) in any periods where ATP should not be calculated. Leave no cells blank - be certain
to enter "0" wherever required.
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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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