Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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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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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
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
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. 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. 3VC
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