Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
11th Edition
ISBN: 9780135639221
Author: Jay Heizer, Barry Render
Publisher: PEARSON+
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 13, Problem 13P
Ram Roy’s firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not permitted.
Supply Available
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Ram Roy’s firm has developed the following supply,
demand, cost, and inventory data. Allocate production capac-ity to meet demand at a minimum cost using the transportation
method. What is the cost? Assume that the initial inventory has noholding cost in the first period and backorders are not permitted.Supply AvailablePERIODREGULARTIME OVERTIME SUBCONTRACT
DEMANDFORECAST1 30 10 5 402 35 12 5 503 30 10 5 40Initial inventory 20 unitsRegular-time cost per unit $100Overtime cost per unit $150Subcontract cost per unit $200Carrying cost per unit per month $ 4
The following table lists the demand for Betty’s Deluxe Chocolate Chip Muffins. Unsold muffins are given to a food bank with a salvage value of $1.00 per muffin. The cost is $2.50 per muffin. The muffins sell for $3.50 each. Using the single-period model, what is the optimal order quantity in number of muffins the supermarket should order?
Quantity
Probability
Cumulative Probability
5
0.2
0.2
6
0.3
0.5
7
0.4
0.9
8
0.1
1.02.5
a. 7
b. 6
c. 5
d. 8
e. None of these are correct
Ram Roy's firm has developed the following supply, demand, cost, and inventory data.
Supply Available
Period
1
2
3
Regular
Time
40
35
30
Overtime
15
15
20
Subcontract
10
10
10
Demand
Forecast
50
65
50
Initial inventory
Regular-time cost per unit
Overtime cost per unit
Subcontract cost per unit
Carrying cost per unit per month
Assume that the initial inventory has no holding cost in the first period and backorders are not permitted.
Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $
(enter your response as a whole number).
30 units
$100
$150
$250
$6
Inc
Chapter 13 Solutions
Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
Ch. 13 - Make the case for, and then against, this pricing...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 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQ
Ch. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - The president of Hill Enterprises, Terri Hill,...Ch. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Consuelo Chua, Inc., is a disk drive manufacturer...Ch. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 11PCh. 13 - Southeast Soda Pop, Inc., has a new fruit drink...Ch. 13 - Ram Roys firm has developed the following supply,...Ch. 13 - Jerusalem Medical Ltd., an Israeli producer of...Ch. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Dwayne Cole, owner of a Florida firm that...Ch. 13 - Prob. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 23PCh. 13 - Prob. 24PCh. 13 - Prob. 25PCh. 13 - Prob. 26PCh. 13 - Evaluate the various configurations of operating...Ch. 13 - Prob. 2CSCh. 13 - After researching revenue (yield) management in...Ch. 13 - The Magic used its original pricing systems of...Ch. 13 - Prob. 1.3VC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- The president'of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows January February 1,450 1,600 May 2,300 2,200 1,900 June March 1,700 1,700 July April August 1,300 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $60 per unit. Inventory holding cost is $20 per unit per month Ignore any idle-lime costs. Evaluate the foilowing plan This exercise contains only Plan E Plan E Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of the demand Subcontract cost is $75 per unit. Plan E Production Subcontract Ending Inventory Month O December 1 January Demand (Units) (Units) 200 1,450 1,600 2 February 1,600 1,600 3 March 1,700 1,600 4 April 1,700 1,600 5 May 2,300 1,600 6 June 7 July 8 August 2,200 1,600 1,900 1,600 1,300 1,600 The total subcontracting cost = S (Enter your response as a…arrow_forwardAlyce operates a factory that manufactures pencil boxes which she sells to stationery store. Additional information: Annual demand is 1 million pencil boxes per year Setup cost is $5000 per batch Holding cost is $3 per year for each pencil boxes Maximum production capacity is 2 million pencil boxes per year Currently, pencil boxes are manufactured in 10 batches. 1 a) Find the optimum production quantity that Alyce should produce to minimize her costs. b) Calculate the current annual holding cost and setup cost. c) Draw a diagram showing stock level for the first batch, assume 1 year has 250 working daysarrow_forwardRam Roy's firm has developed the following supply, demand, cost, and inventory data. Period 1 2 3 Regular Time 30 35 40 Supply Available Overtime Subcontract 15 15 15 15 15 15 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ 20 units $100 $160 $250 $6 Demand Forecast 40 55 55 ח (enter your response as a whole number).arrow_forward
- Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Period 1 2 3 Regular Time 40 30 30 Supply Available Overtime Subcontract 15 15 15 15 15 15 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ 20 units $100 $160 $250 $4 Demand Forecast 40 55 45 0 (enter your response as a whole number).arrow_forwardRam Roy's firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. supply available period initial inventory regular-time cost per unit Overtime cost per unit subcointract cost per unit carrying cost per unit per month 1 2 3 Regular Tim overtime subcontrac demand forecast 30 35 30 15 $ LA LA LA L $ $ $ 90.00 110.00 120.00 3.00 15 10 10 5 5 5 50 50 40arrow_forwardRam Roy's firm has developed the following supply, demand, cost, and inventory data Period 1 2 3 Regular Time 30 30 40 Supply Available Overtime Subcontract 5 15 15 15 5 5 Demand Forecast 40 20 units $100 $150 $200 $6 45 55 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month Assume that the initial inventory has no holding cost in the first period and backorders are not permitted Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ (enter your response as a whole number)arrow_forward
- Ram Roy's firm has developed the following supply, demand, cost, and inventory data Period 1 2 3 Regular Time 40 35 40 Supply Available Overtime Subcontract 15 15 15 Initial inventory Regular bime cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month 5 20 units $100 $150 $250 $6 Demand Forecast 40 60 55 10 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $(enter your response as a whole number)arrow_forwardplease answer.arrow_forwardCalculate Total Cost of Stockoutarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY