Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 13, Problem 14P
Question:
• 13.14 Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are
The cost of producing each dialysis unit is $985 on regular time, $1,310 on overtime, and $1,500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Set up a production plan that minimizes cost using the transportation method.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Question 3
List any five (5) costs prevalent in aggregate planning in the motor car industry.
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.
2
Chapter 13 Solutions
Operations Management
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. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 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 2 - Rohe (Hong Kong) Ltd is a pharmaceutical company which manufactures and supplies various drugs for drug stores in Asia. Currently, Rohe (Hong Kong) Ltd has four factories A, B, C and D. Management has decided to build a new factory at a location central to these factories. Information regarding the yearly demands and the map coordinates for the four factories are shown in below table. Factories e Demand e x-coord- 9,000- y-coorde A- 20e 130e Be 3,000 60- 404 Ce 5,000- 70- 100- De 16,000- 90 30 (a) Determine the map coordinates of the new factory. (b) Suggest and elaborate TWO other factors that need to consider in the selection of location. earrow_forwardQuestion 4.4 Montreal Hardware Co. is making a make-or-buy decision. The market feedback shows that the optimal price for this item is $10 each. If the item is outsourced to Laval Hardware Co, there is virtually no cost other than the $6 per unit that they would pay Laval Hardware Co. Internally, they have two choices. Process A requires an investment of $120,000 for design and equipment, but it results in a $4 per unit cost. Process B requires only a $100,000 investment, but its per unit cost is $5. Regardless of whether the item is subcontracted or produced internally, there is a 50% chance that they will sell 50,000 units, and a 50% chance that they will sell 100,000 units. Draw the decision tree appropriate to the alternatives and outcomes stated. Using the decision tree and EMV, what is their best choice?arrow_forwardQuestion 1 the concrete pipe factories of the DSI(State Hydraulic Works) in Eskişehir, Bursa and Konya and the 2019 needs for these pipes are given below. The annual production capacities of Annual Production (Pieces) Requirement (Pieces) Factory Capacity Eskişehir 8000 Bursa 7000 Konya 9000 City Demand İstanbul 7500 Ankara 6000 Trabzon 5000 Gaziantep 5500 Estimated intercity transportation prices : Transportation Prices (Pipe / TL) İstanbul Ankara Trabzon Gaziantep|| Eskişehir 44 40 46 50 Bursa 30 40 30 60 Konya 45 30 42 45 Create a mathematical model that will provide the most economical transportation of pipes produced in different factories to the points of need.arrow_forward
- Question 3 (Module 2): In the past, Arup Mukherjee's tire dealership in Sudbury sold an average of 1,000 radials each year. In the past two years, 200 and 250, respectively, were sold in fall, 350 and 300 in winter, 150 and 165 in spring, and 300 and 285 in summer. With a major expansion planned, Mukherjee projects sales next year to increase to 1,200 radials. What will be the demand during each season?arrow_forwardQuestion 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: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
- Question 6 Table below is a time-phased net requirements for Widgets over the next six weeks. Week 1 Requirements 335 The setup cost is $200 and the holding cost is $0.30 per unit per week. Using the Silver-Meal heuristics, indicate the number of units to produce for each of the following period. Enter your answer as integer. Week 1 2 3 4 5 6 2 200 Production Quantity 3 140 4 440 5 300 The total holding and setup cost for the Silver-Meal lot sizing method is $ Note: Enter your value with exactly 2 decimal places, as in 12345.67 6 200arrow_forwardQUESTION 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.arrow_forwardMay 77.000 Problem 4 (Regression Analysis, Service Company) Bobby Gonzales owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. Gonzales business is seasonal, with a heavy schedule during the summer months and the year-end holidays and a light schedule at other times. During peak periods there are extra costs. One of the major events Gonzales' customers request is a cocktail party. He offers a standard cocktail party and has developed the following cost structure on a per person basis. Food and bevernges Labor (0.5 hour x PIO per hour) Overhead (0.5 hour x P14 per hour) Total costs per person PI5.00 5.00 7.00 P27.00 Gonzales is quite certain about his estimates of the food, beverages, and labor costs but is not as comfortable with the overhead estimate. This estimate was based on the actual data for the past 12 months presented below. These data indicate that overhead costs vary with the direct labor- hours used. The…arrow_forward
- Graphical Methodarrow_forward3. 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_forwardQ 1: A sales manager is planning a business tour from city A to city B. He intend to cover one town from each of the company's different marketing zones on the route. The network shows three intermediate stages and three possible choices of route at all but the last stage. The travel time between the two cities inclusive of working time is given. Which intermediate cities should he visit to minimize the time required to go from A to H? B E 3. 7 7 6. 7 5 H 10 6. 3 Darrow_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.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY