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 7DQ
The XYZ Company manufactures a seasonal product. At the present time, the company uses a level labor force as a matter of company policy. The company is afraid that if it lays off workers, it will not be able to rehire them or find qualified replacements. Does this company have an aggregate planning problem? Discuss.
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Deb Bishop Health and Beauty Products has developed a new shamp0o and you need to develop its aggregate schedule. The cost accounting department has
supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast.
Click the icon to view the four-quarter forecast.
Click the icon to view the costs relevant to the aggregate plan.
Your job is to develop an aggregate plan for the next four quarters.
a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers).
Hiring and Layoff Plan
Hire
Layoff
(Units)
Quarter
Forecast
Production
(Units)
1,500
1
1,400
Costs
Previous quarter's output
Beginning inventory
1,500 units
O units
$45 per unit
$9 per unit for every unit held
at the end of the quarter
$40 per unit
$70 per unit
$35 per unit
$20 extra per unit
Stockout cost for backorders
Inventory holding cost
Quarter
Forecast
Hiring workers
Layoff workers
1
1,400
2
1,000
Unit cost
3
1,600
Overtime
4
1,300…
Deb Bishop Health and Beauty Products has developeda new shampoo, and you need to develop its aggregate schedule.The cost accounting department bas supplied you the costsrelevant to the aggregate plan, and the marketing department hasprovided a four-quarter forecast. All are shown as follows: Your job is to develop an aggregate plan for the next four quarters.a) First, try hiring and layoffs (to meet the forecast) as necessary.b) Then try a plan that holds employment steady.c) Which is the more economical plan for Deb Bishop Healthand Beauty Products?
Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has
supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast.
E Click the icon to view the four-quarter forecast.
E Click the icon to view the costs relevant to the aggregate plan.
Your job is to develop an aggregate plan for the next four quarters.
a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers).
Hiring and Layoff Plan
Layoff
(Units)
Hire
Quarter
Forecast
Production
(Units)
1,500
1
1,400
Costs
Previous quarter's output
Beginning inventory
1,500 units
O units
$45 per unit
$9 per unit for every unit held
at the end of the quarter
$40 per unit
$70 per unit
$35 per unit
$20 extra per unit
Stockout cost for backorders
Inventory holding cost
Quarter
Forecast
Hiring workers
Layoff workers
Unit cost
1
1,400
1,000
1,600
3
Overtime
4…
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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- Jataarrow_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_forwardHow may a spreadsheet be used in capacity planning?arrow_forward
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- In 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_forwardConsuelo 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_forwardDiscuss how aggregate plans is implemented in service organizations. Give examplearrow_forward
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