EBK PRINCIPLES OF OPERATIONS MANAGEMENT
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175644
Author: Munson
Publisher: VST
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Chapter 11.S, Problem 18P

a)

Summary Introduction

To select: The economical option for company MTS.

Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding businesses in global conditions, supply chain activities can impact on the cost effectiveness of these businesses.

b)

Summary Introduction

To determine: Production issues that are not included in the data.

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Monczka-Trent Shipping is the logistics vendorfor Handfield Manufacturing Co. in Ohio. Handfield hasdaily shipments of a power-steering pump from its Ohio plantto an auto assembly line in Alabama. The value of the standard shipment is $250,000. Monczka-Trent has two options:(1) its standard 2-day shipment or (2) a subcontractor whowill team drive overnight with an effective delivery of one day.The extra driver costs $175. Handfield’s holding cost is 35%annually for this kind of inventory.a) Which option is more economical?b) What production issues are not included in the datapresented?
Monczka-Trent Shipping is the logistics vendor for Handfield Manufacturing Co. in Ohio. Handfield has daily shipments of a power-steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard shipment is $253,040. Monczka-Trent has two options: (1) its standard 2-day shipment or (2) a subcontractor who will team drive overnight with an effective delivery of 1 day. The extra driver costs $180. Handfield's holding cost is 35% annually for this kind of inventory. a) is more economical, with a daily cost of $ (Enter your response as a whole number.) b) What production issues are not included in the data presented? A. Potential delay in the production process. B. The varying fuel costs of alternative 1 and 2. C. Handfield's cost of holding the item for an additional day if it chooses to ship in 2 days instead of 1. D. All of the above. E. Only A and B.
After applying the NWC Rule for the initial tableau of the given transportation model, evaluate the vacant cells. What is the cell which has the most negative evaluation value and what is the cell evaluation value? DESTINATION SOURCE DEMAND X Y N OX-R; 1 OY-S; -1 OX-S; -1 OY-S; -2 P 75 8 12 EI 11 Q 80 5 8 11 R 120 7 10 10 S 50 11 13 14 SUPPLY 100 125 100 325

Chapter 11 Solutions

EBK PRINCIPLES OF OPERATIONS MANAGEMENT

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