Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 11, Problem 6P
Manager Chris Channing of Fabric Mills, Inc., has developed the
a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is $60 per hundred bolts. Regular production can be less than regular capacity.
b. Would the total cost be less with regular production with no overtime, but using a subcontractor to handle the excess above regular capacity at a cost of $50 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $2 per hundred bolts.
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A company blends and bottles an energy drink in various flavors for college students. The aggregate forecast for the next four quarters (1 year) in thousands of gallons is as follows:
Quarter Demand forecast per 1000 gallons
1 4002 7003 8504 650Each employee works 550 standard straight-time hours each quarter.
On average, it takes 27 hours to produce and package 1 unit (1,000 gallons).
Straight-time labor costs $6.00/hour; overtime labor costs $9.00/hour.
Inventory holding cost is approximately $4.50/unit (1,000 gallons) per quarter, based on ending inventory per quarter.
Due to the extremely hot weather, there is no initial inventory on hand to start the first quarter.
Management wants a constant workforce (no hiring and no layoffs).
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Using a level strategy program, what will the annual labor cost be if only 30 employees are available and overtime is used?
Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts of cloth. The figures are in hundreds of bolts. The department has a regular output capacity of 275(00) bolts per month, except for the seventh month, when capacity will be 240(00) bolts. Regular output has a cost of $43 per hundred bolts. Workers can be assigned to other jobs if production is less than regular. The beginning inventory is zero bolts.
Month
1
2
3
4
5
6
7
Total
Forecast
275
350
225
300
280
275
270
1,975
a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is $68 per hundred bolts. Regular production can be less than regular capacity
b. Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to handle the excess above regular capacity at a cost of $53 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $2 per hundred bolts. (Round…
Matrix uses simple exponential smoothing with S.F = 0.6 to forecast demand. The forecast for the week of Nov 1 was 350 units, whereas the actual demand turned out to be 400 units.
Forecast the demand for the week of Nov 8 to week Nov 22
Week
Actual Demand
Forecast
Nov 01
350
400
Nov 08
460
430
Nov 15
501
448
Nov 22
495
479.8
Element of Competency
Determine the quantity of raw materials and other products order.
Chapter 11 Solutions
Operations Management
Ch. 11 - What three levels of planning involve operations...Ch. 11 - What are the three phases of intermediate...Ch. 11 - Prob. 3DRQCh. 11 - Why is there a need for aggregate planning?Ch. 11 - What are the most common decision variables for...Ch. 11 - Prob. 6DRQCh. 11 - Briefly discuss the advantages and disadvantages...Ch. 11 - What are the primary advantages and limitations of...Ch. 11 - Briefly describe the planning techniques listed as...Ch. 11 - What are the inputs to master scheduling? What are...
Ch. 11 - Prob. 11DRQCh. 11 - What general trade-offs are involved in master...Ch. 11 - Who needs to interface with the master schedule...Ch. 11 - How has technology had an impact on master...Ch. 11 - Service operations often face more difficulty in...Ch. 11 - Name several behaviors related to aggregate...Ch. 11 - Compute the total cost for each aggregate plan...Ch. 11 - A manager would like to know the total cost of a...Ch. 11 - Determine the total cost for this plan given the...Ch. 11 - a. Given the following forecast and steady regular...Ch. 11 - Manager T. C. Downs of Plum Engines, a producer of...Ch. 11 - Manager Chris Channing of Fabric Mills, Inc., has...Ch. 11 - SummerFun. Inc., produces a variety of recreation...Ch. 11 - Nowjuice, Inc., produces Shakewell fruit juice. A...Ch. 11 - Wormwood, Ltd., produces a variety of furniture...Ch. 11 - Refer to Solved Problem 1. Prepare two additional...Ch. 11 - Refer to Solved Problem 1. Suppose another option...Ch. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Refer to Example 3. Suppose that regular-time...Ch. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prepare a master production schedule for...Ch. 11 - Update the master schedule shown in Figure 11.11...Ch. 11 - Prepare a master schedule like that shown in...Ch. 11 - Determine the available-to-promise (ATP)...Ch. 11 - Prepare a schedule like that shown in Figure 11.12...Ch. 11 - The objective is to choose the plan that has the...Ch. 11 - Prob. 2CQ
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