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 9DQ
Every firm has multiple objectives such as good labor relations, low operating costs, high inventory turnover, and good customer service. What are the pros and cons of treating these objectives separately in an aggregate planning problem versus combining them all into a single measure of cost?
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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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- A manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan to meet this demand given this additional information: A level production rate of 500 units per month can be used. Backorders are allowed, and they are charged at the rate of $20 per unit per month. Inventory holding costs are $1 per unit per month in ending inventory. Determine the cost of this plan if regular time cost is $10 per unit and beginning inventory is zero. Overtime costs $16 per unit and subcontracting costs $20 per unit. In the 4th month, overtime is not possible. While outsourcing is not possible in the 3rd month. Overtime capacity is 50 units and subcontracting capacity is 50 units. Month Forecast 1 400 2 480 3 560 4 720 5…arrow_forwardA manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan to meet this demand given this additional information: A level production rate of 1000 units per month can be used. Backorders are allowed, and they are charged at the rate of $20 per unit per month. Inventory holding costs are $1 per unit per month in ending inventory. Determine the cost of this plan if regular time cost is $10 per unit and beginning inventory is zero. Overtime costs $16 per unit and subcontracting costs $20 per unit. In the 4th month, overtime is not possible. While outsourcing is not allowed in the 3rd month. Overtime capacity is 100 units and subcontracting capacity is 100 units per month. Month Forecast 1 800 2 960 3 1120 4 1440 5…arrow_forwardDiscuss how aggregate planning differs when a company doesn't provide a tangible product?arrow_forward
- Implement a effective Aggregate planning process using Chase Strategy,level strategy & Mixed strategy. Find out which one is better & why statisticallyarrow_forwardHow does aggregate planning in service differ fromaggregate planning in manufacturing?arrow_forwardDeb 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. the four-quarter forecast. Quarter Forecast 1 1,400 2 1,100 3 1,700 4 1,300 aggregate plan. Costs Previous quarter's output 1,600 units Beginning inventory 0 units Stockout cost for backorders $55 per unit Inventory holding cost $11 per unit for every unit held at the end of the quarter Hiring workers $50 per unit Layoff workers $75 per unit Unit cost $35 per unit Overtime $20 extra per unit Subcontracting Not available Your job is to develop an aggregate plan for the next four quarters. Part 2 a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole…arrow_forward
- 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. the four-quarter forecast. Quarter Forecast 1 1,400 2 1,100 3 1,700 4 1,300 the costs relevant to the aggregate plan. Costs Previous quarter's output 1,600 units Beginning inventory 0 units Stockout cost for backorders $55 per unit Inventory holding cost $11 per unit for every unit held at the end of the quarter Hiring workers $50 per unit Layoff workers $75 per unit Unit cost $35 per unit Overtime $20 extra per unit Subcontracting Not available Your job is to develop an aggregate plan for the next four quarters. Part 2 a) Try hiring and layoffs (to meet the forecast) as necessary…arrow_forwardAggregate planners attempt to balance: a. demand and inventories b. capacity and costs c. capacity and demand d. demand and costsarrow_forwardAssume that Blue Button Manufacturing (BBM) has accepted the merits of aggregate planning. You have been requested to indicate the way forward and must recommend an aggregate planning strategy to the management team. Write a report in which you describe the concept “trade-offs in aggregate planning”, identify the potential strategies that could be followed, including the use case for each strategy, and then substantiate your choice of strategy for BBMarrow_forward
- Operation managemetnarrow_forwardLunar Co.Ltd's estimated demand for the next 6 months in 2021 is as follows: Month Demand July 1500 August 1700 September 2000 October 1800 November 2200 December 1500 Management considers 2 aggregate plans as follows:a. Perform variations in the number of workers according to the level of demand. The current average production is 1500 units/month. Labor procurement costs $500,000 per 100 units,while the cost of reducing labor is $750,000 per 100 units. b. Keeping production levels constant at an average of 1500 units/month (to meet minimum demand) and to meet demand shortages through subcontracting at a marginal cost of $5,000 per unit. Subcontracting can only be done in a number of 500 units. Demand that cannot be met by production and subcontracting is a loss of sales and calculated at $5,000 per unit. In your opinion, as the company's operational manager, which plan should the company take (from points a & b above) so that the company can achieve production…arrow_forwardList the strategic objectives of aggregate planning. Whichone of these is most often addressed by the quantitativetechniques of aggregate planning? Which one of these isgenerally the most important?arrow_forward
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