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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Chapter 13, Problem 11DQ
Question:
11. What is the relationship between the aggregate plan and the master production
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Q2) 3. What is long range plan?
QUESTION THREEa) Zambia Breweries has a backlog of 250 crates of Fanta drinks at the end of December. The demand of Fanta drinks is expected to be 400 crates in January, 500 crates in February and 550 crates in March. Each worker can produce 50 crates of drinks per month with regular wage costing the company K10 000 per worker per month. Hiring cost has been calculated to be K25 000 per. Hiring cost has also been calculated to be K50 000 per worker. Backlog cost have been determined to cost the company K250 per worker. There are no cost associated with carrying the inventory.
Develop a level of production plan (aggregate plan) and determine the cost.
b) Explain why aggregate planning is necessary in production and operation management.c) Define the meaning and what happens at each of these aggregate capacity planning;i) Matching Demand approachii) Level Capacity approach.
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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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- QUESTION 1 Manager T. C. Downs of Plum Engines, a producer of lawnmowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a regular output capacity of 105 engines per month. Regular output has a cost of $65 per engine. The beginning inventory is zero engines. Overtime has a cost of $120 per engine. Month Total Forecast 95 100 115 400 Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $3 per engine per month. Backlog cost is $100 per engine per month. There should not be a backlog in the last month. Set regular production equal to the monthly average of total forecasted demand Assume that using overtime is not an option. (Negative amounts should be indicated by a minus sign. Leave no celis blank - be certain to enter "0" wherever required. Round average inventory row, Inventory cost row, and Total row values to 1 decimal. Do not write the Dollar sign (S))arrow_forwardGraphical Methodarrow_forwardQUESTION: Present a closing statement explaining the benefits to Stayer of applying activity-based costing to its R&D activity for both in-house and outside charging purposes.arrow_forward
- 3. Your independent oil and gas company is considering the purchase at time zero of a 100 % working interest in a property. If you elect to develop the lease for an 87.5% revenue interest, the following costs will be incurred: in time zero, the lease bonus cost is $100,00o, intangible drilling costs are estimated at $550,000 while tangible completion costs are estimated at $300,000. Operating costs are estimated to remain constant at $8.00 per barrel (includes production costs, severance taxes and ad-valorem taxes) in each of years 1, 2, 3 and 4. Oil prices are forecasted to be $50.00 per barrel in each of years 1, 2, 3, and 4. Production is summarized in the following table. The escalated dollar minimum rate of return is 12.0%. Use net present value analysis to determine if the acquisition and development of this lease is economically viable: (a) Before considering income taxes, (b) Assuming income tax rate of 30%. (Expense 100% of intangible drilling costs at the end of first year,…arrow_forwardQ3 The numbers for March are correct. Cost table: LayoffHiringInventory Totals: 36 36 55,209 Costs: $54,000 $162,000 $165,627 Cost of plan:$381,627 Planning values Starting inventory: 3,000 Starting and ending workforce: 214 Hours worked per month per hour: 240 Hours per unit: 30 Hiring cost per worker: $4,500 Layoff cost per worker: $1,500 Monthly per-unit holding cost: $3 Forecasted sales: Month Forecasted salesMarch 1,649April 1,427May 1,137June 976July 1,531August 1,976September 2,470October 2,529November 3,016December 2,910January 2,434February 1,945arrow_forwardQUESTION 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…arrow_forward
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