Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 13, Problem 14DQ
Summary Introduction
To determine: Theimpact of revenue management on aggregate planning
Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
question 1
Terminator, Inc., manufactures a motorcycle part in lots of
250 units. The raw materials cost for the part is $150, and the value added in manufacturing 1 unit from its components is $280, for a total cost per completed unit of $430. The lead time to make the part is 3 weeks, and the annual demand is 4,200 units. Assume 50 working weeks per year.
a. How many units of the part are held, on average, as cycle inventory?
nothing units. (Enter your response as an integer.)
What is its value? $_______.(Enter your response as an integer.)
b. How many units of the part are held, on average, as pipeline inventory?
nothing units. (Enter your response as an integer.)
What is its value?
$________________
(Enter your response as an integer.)
QUESTION #1
Mrs. Johnson, the owner of a small manufacturing business has patented a new device for
kitchen appliance. Before trying to commercialize the device and add it to her existing product
line, the she wants reasonable assurance of success. Variable costs are estimated at $8 per unit
produced and sold. Fixed costs are about $60,000 per year.
a. Forecasted sales for the first year are 15,000 units if the price is reduced to $20. With this
pricing strategy, what would be the product's total contribution to profits in the first year?
b. If the selling price is set at $30, how many units must be produced and sold to break even?
Use both algebraic and graphic approaches
Question 5
Terminator, Inc., manufactures a motorcycle part in lots of
150
units. The raw materials cost for the part is
$150,
and the value added in manufacturing 1 unit from its components is
$320,
for a total cost per completed unit of
$470.
The lead time to make the part is
2
weeks, and the annual demand is
3,800
units. Assume 50 working weeks per year.
a. How many units of the part are held, on average, as cycle inventory?
__________________
units. (Enter your response as an integer.)
What is its value?
$___________________
(Enter your response as an integer.)
b. How many units of the part are held, on average, as pipeline inventory?
________________
units. (Enter your response as an integer.)
What is its value?
$__________________________
(Enter your response as an integer.)
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...
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
- QUESTION 1 The enrollment of the new students at ABC University has increased steadily over the past few years. The university would like to plan the workforce for academicians for year six to year eight. The reyulalury buuy, Malaysian Acuredilaliun Ayency (MQA) has set the standard of the ratio between academicians and student to be 1:50. The data below show the number of students enrolled for the past five years. Year Demand 4500 5000 5200 1 2 3 4 5600 5800 The university's administration considers using simple regression analysis to forecast the number of students enrolled in the next three years. a) Use simple linear regression to forecast the annual number of students enroll for the next three years. b) Determine the correlation coefficient for the data and interpret its meaning. c) Determine the coefficient of determination for the data and interprot its moaning. d) Determine the number of academicians that can fulfill the MQA standard for year six.arrow_forwardQUESTION 3 (Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the Expected Value of Perfect Information (EVPI)? PROFIT ($) Average Crowd $50,000 $70,000 .50 Alternatives Large Inventory Small Inventory Probability * A) $68,400 B) $78,400 C) $10,000 D) -$20,000 O E) $51,500 Large Crowd $220,000 $90,000 .20 Small Crowd -$2,000 -$5,000 30arrow_forwardQUESTION 1 A master production schedule shows the following information MPS Week Week Week Week Beginning inventory = 300 31 Forecast 1.000 1,200 1,300 1.200 800 700 Actual customer orders Projected on-hand inventory Available to promise 800 1,000 MPS Based on the information in the MPS, what is the amount that is available to promise in week 4? O a. 1,200 Ob.700 Oc. 1.500 O d. 500arrow_forward
- Question 4 plzarrow_forwardQuèstion 8 A company must pay each month's bills for rent, heat, interest, and executive salaries regardless of the company's level of output. These expenses represent: O a. Fixed costs O b. Target costs Oc. Direct costs O d. Variable costs O e. Total costs hp IDI 米 & 00arrow_forwardQUESTION 2 ID11 What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders? BOM MRP CIM ⒸERParrow_forward
- Question 6 Aceron Bhd produces three products A, B and C. The unit cost and selling prices are as shown below: Product Selling price Direct material Direct labour Variable production overhead Fixed Production Overhead per month RM5,000 RM29 6 (a) (b) (c) 9 5 B RM31 5 10 6 с RM30 8 4 8 Product A requires 3 hours to produce, B 5 hours and C 1 hour. Owing to capacity restrictions, total labour hours will be limited to 12,000 hours in the following period. The demand for the coming month is 2,000 units for each of the products. Required: Calculate the profits if there is no restriction on the labour hours. Prepare the optimum production plan if the labour hours is restricted as above. Calculate the profits of your revised planarrow_forwardQuestion 5 O pts A new product that will sell for $75.00 has variable costs of $38.00 per unit. Fixed costs of $75,000 must be incurred every year to manufacture this product. What is the annual volume to break even? O 2000 units or more. O fewer than 1500 units. O 1750 to 1999 units. O 1500 to 1749 units.arrow_forwardQUESTION 1 AJ Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand 1 1300 2 1400 3 1500 4 1300 Previous quarter's output = 1,500units Beginning inventory = 200units Stockout costs = $50 per unit Inventory holding cost = $10 per unit at end of quarter Hiring workers = $4 per unit Firing workers = $8 per unit Unit cost = $30 per unit Overtime = $10 extra per unit a) Which of the following production plans is better: Plan A - chase demand by hiring and firing: or plan B - product at a constant rate of 1200 and obtain remainder from overtime? b) Explain the differences between repair and preventive maintenance? c) Explain the implications of each approach when developing an asset maintenance strategy? d) Explain the benfits and challenges associated with the implementation of an MRP system?arrow_forward
- v Question Completion Status: QUESTION 11 The accompanying table shows the demand and supply schedules for lobster. The U.S. government decides that the incomes of lobster farmers should be maintained at a level that allows them to survive. It therefore implements a price floor of $14 per pound by buying surplus lobster until the market price is $14 per pound. Quantity Demand (thousands of pounds) Quantity Supplied (thousands of pounds) Price of Lobster (per pound) $22 0. 360 20 20 320 18 40 280 16 60 240 14 80 200 12 100 160 10 120 120 8 140 80 6 160 40 4 180 Reference: Ref 2-1 Since lobster is an important source of protein and omega-3, the government decides to provide the surplus lobster it purchases to nursing homes at a price of only $12 per pound. Assume that nursing homes will buy any amount of lobsters available at this low price, but families of nursing home patients now reduce their purchases of lobsters at any price by 60 thousand pounds because their family members are…arrow_forwardQuestion 4 Cost-benefit-tradeoff problems are linear programming problems involving the allocation of limited resources to activities. O True O Falsearrow_forwardQuestion 2 "In air cargo revenue management, for every flight we operate, we first must forecast the capacity so we can understand how much space we can sell. Unlike on the passenger side where the number of seats is rather standard, the cargo capacity will vary based on the route, the aircraft, the number of passengers, the number of bags passengers are carrying and other metrics." Karri Kauppi, Head of Cargo Revenue Management & Pricing, Finnair Source: The Complexities of Air Cargo Revenue Management https://www.kambr.com/articles/the-complexities-of-air-cargo-revenue-management (a) According to Karri Kauppi, cargo revenue management (CRM) is complex. The first thing in CRM is to forecast the air cargo capacity which would depend on factors e.g. the route, the aircraft, the number of passengers, the number of bags and other metrics. Appraise how Karri practises CRM in forecasting air cargo capacity and pricing available cargo space for sale in order to maximize profitability.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.