Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Textbook Question
Chapter 13, Problem 10P
Question:
••• 13.10 The S&OP team (see Problem 13.9) is considering two more mixed strategies. Using the data in Problem 13.9, compare plans C and D with plans A and B and make a recommendation.
► Plan C: Keep the current workforce steady at a level producing 1,300 units per month. Subcontract the remainder to meet demand. Assume that 300 units remaining from June are available in July.
► Plan D: Keep the current workforce at a level capable of producing 1,300 units per month. Permit a maximum of 20% overtime at a premium of $40 per unit. Assume that warehouse limitations permit no more than a 180-unit carryover from month to month. This plan means that any time inventories reach 180, the plant is kept idle. Idle time per unit is $60. Any additional needs are subcontracted at a cost of $60 per incremental unit.
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D Question 1
Capacity Planning Using Oversli Factors does not consider historical percentages at the work centers when computing capacity
needs.
Ⓒue
False
Question 2
In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity.
Othe
False
QUESTION TWO
An aggregate plan is to be developed for the forecast of demand covering nine periods shown in
Table below. Other relevant production and cost information is also provided. Find the cost
associated with an aggregate plan that involves varying the size of the work force in order to have a
production rate that matches demand.
Note: Since this plan does not allow for any inventory build-up, a decision has been made to carry 10
units of safety stock, but no overtime or subcontract labour is used.
Table showing Demand, production, and cost information
Month
Jan. Feb. Mar. April May June
July Aug. Sept.
Total
Forecast 40 25
30
60 40
55
30
50
30
360
Production information
Cost information
Current number of workers
Worker time/month
Time to produce one unit
10
Hiring cost
K600/employee
160 hrs
Layoff cost
K500/employee
40 hrs
Regular time cost
K30/hr
Individual worker output
Overtime cost
K45/hr
(160 hr/month/40 hr/unit)
Subcontract labour K50/hr
4 units
cost
Safety stock of…
Question 4
An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and
revenue of $70 per unit. The break-even point volume is:
Chapter 13 Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Ch. 13 - Prob. 1DQCh. 13 - Why are SOP teams typically cross-functional?Ch. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Question: 7. What is level scheduling? What is the...Ch. 13 - Question: 8. Define mixed strategy. Why would a...Ch. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Question: 11. What is the relationship between the...Ch. 13 - Prob. 12DQCh. 13 - Question: 13. What are major limitations of using...Ch. 13 - Prob. 14DQCh. 13 - Question: 13.1 Prepare a graph of the monthly...Ch. 13 - Prob. 2PCh. 13 - The president of Hill Enterprises, Terri Hill,...Ch. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Question: 13.10 The SOP team (see Problem 13.9)...Ch. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Question: 13.14 Jerusalem Medical Ltd., an...Ch. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Question: 13.18 Jose Martinez of El Paso has...Ch. 13 - Prob. 19PCh. 13 - Prob. 24PCh. 13 - Prob. 25PCh. 13 - Prob. 26PCh. 13 - Prob. 1CSCh. 13 - Prob. 2CSCh. 13 - Prob. 1VCCh. 13 - Prob. 2VCCh. 13 - Question: 3. What are some concerns the team needs...
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