EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175644
Author: Munson
Publisher: VST
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Chapter 13, Problem 14P
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.
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Students have asked these similar questions
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months
as follows:
January
1,400
May
2,200
February
1,500
June
2,100
March
1,800
July
1,700
April
1,700
August
1,700
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 $125 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time
costs. The plan is called plan A.
Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The
December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is
$55 per unit. The cost of laying off workers is $75 per unit. Evaluate this plan. (Enter all responses as whole
питbers.)
Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January
to 1,400 in February incurs a cost of…
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:
May
2,100
January
February
1,450
1,700
1,700
June
2,300
July
1,900
March
April
1,700
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 $65 per unit. Inventory holding cost is $25 per unit per
month. Ignore any idle-time costs. Evaluate the following 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.
Month
10 December
1 January
2 February
3 March
4 April
5 May
6 June
7 July
8 August
Demand
1,450
1,700
1,700
1,700
2,100
2,300
1,900
1,300
Production
(Units)
1,600
1,600
1,600
1,600
1,600
1,600
1,600
1,600
Plan E
Ending
Subcontract (Units) Inventory
200
The total subcontracting cost = $
(Enter your response as…
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:
January
1,500
May
2,300
February
1,700
June
2,100
March
1,700
July
1,900
April
1,700
August
1,500
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
$125
per unit. Inventory holding cost is
$20
per unit per month. Ignore any idle-time costs. The plan is called plan C.
Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels.
Conduct your analysis for January through August.
The average monthly demand
requirement=18001800
units. (Enter your response as a whole number.)
In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in…
Chapter 13 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
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
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