Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN: 9781305627734
Author: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher: Cengage Learning
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Textbook Question
Chapter 11, Problem 13P
The Silver Star Bicycle Company will manufacture both men’s and women’s models for its Easy-Pedal bicycles during the next two months. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 men’s and 125 women’s models to be shipped during the first month and 200 men’s and 150 women’s models to be shipped during the second month. Additional data are as follows:
Last month, the company used a total of 1,000 hours of labor. The company’s labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months. (Hint: Define variables for production and inventory held in each period for each product.
Then use a constraint to define the relationship between these: inventory from end of previous period + produced this period – demand this period = inventory at end of this period.)
- a. Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. What inventories will be maintained and what are the monthly labor requirements?
- b. If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? How much will the cost increase? What would you recommend?
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Please answer C. and D.
Palisades 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
$
25,820
1,700
2
$
36,290
2,592
3
$
39,968
2,811
4
$
31,648
2,222
5
$
34,809
2,373
6
$
32,672
2,181
7
$
32,023
2,205
8
$
38,334
2,676
9
$
38,568
2,760
10
$
46,933
3,572
11
$
42,157
2,976
12
$
39,030
2,804
13
$
34,444
2,415
14
$
33,173
2,336
15
$
36,971
2,508
16
$
26,500
2,099
17
$
30,663
3,397
18
$
29,961
2,786
19
$
27,590
2,412
20
$
30,003
2,972
21
$
25,692
2,000
22
$
24,655
1,794
23
$
28,892
3,267
24
$
30,153
3,817
25
$
28,119
2,592
26
$
31,690
3,274
27
$
28,651
2,989
28
$
29,927
3,050
29
$
28,438
2,511
30
$
27,874
2,075…
Chapter 11 Solutions
Essentials of Business Analytics (MindTap Course List)
Ch. 11 - Kelson Sporting Equipment, Inc., makes two types...Ch. 11 - The Sea Wharf Restaurant would like to determine...Ch. 11 - Blair Rosen. Inc. (BR) is a brokerage firm that...Ch. 11 - Round Tree Manor is a hotel that provides two...Ch. 11 - Industrial Designs has been awarded a contract to...Ch. 11 - Vollmer Manufacturing makes three components for...Ch. 11 - Photon Technologies, Inc., a manufacturer of...Ch. 11 - The Westchester Chamber of Commerce periodically...Ch. 11 - The management of Hartman Company is trying to...Ch. 11 - The employee credit union at State University is...
Ch. 11 - The Atlantic Seafood Company (ASC) is a buyer and...Ch. 11 - The Silver Star Bicycle Company will manufacture...Ch. 11 - The Clark County Sheriff’s Department schedules...Ch. 11 - Bay Oil produces two types of fuel (regular and...Ch. 11 - Consider the following network representation of a...Ch. 11 - Refer to the transportation problem described in...Ch. 11 - Aggie Power Generation supplies electrical power...Ch. 11 - The Calhoun Textile Mill is in the process of...Ch. 11 - Refer to the Calhoun Textile Mill production...
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