Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 13, Problem 16P
Summary Introduction
To determine: The minimum cost using transportation method.
Introduction: Aggregate planning using transportation method helps to attain the minimum cost with the optimal plan. The major advantage of transportation method is to achieve the optimal solution using optimal plans.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A large St. Louis feed mill, Robert Orwig Processing,prepares its 6-month aggregate plan by forecasting demand for50-pound bags of cattle feed as follows: Ja nuary, 1,000 bags;February, I ,200; March, I ,250; April, 1,450; May, I ,400; and June,I ,400. The feed mill plans to begin the new year with no inventoryleft over from the previous year, and backorders a re not permitted.It projects that capacity (during regular hours) for p roducingbags of feed will remain constant at 800 until the end of April, andthen increase to 1,100 bags per month when a planned expansionis completed on May I. Overtime capacity is set at 300 bags permonth until the expansion, at which time it will increase to 400bags per month. A friendly competitor in Sioux City, Iowa, is a lsoavailable as a backup source to meet demand but can provideonly 500 bags total during the 6-month period. Develop a 6-monthproduction plan for the feed mill using the transportation method.
Wine Accessories Inc. (WAI) produces two models of corkscrews, the standard model and a deluxe model. WAI follows a level aggregate plan, producing 20,000 corkscrews per month, or 5000 corkscrews per week. Th e MPS is developed in weekly time periods. Th e forecasts for each model and the projected available are shown in the next two tables. Th e replenishment order quantity is 2000 units for the standard model and 1000 units for the deluxe model. Note that you can place multipleorders if a single order is insuffi cient to cover the forecast (you can produce 4000 units of the standard model if necessary, or 2000 or 3000 units of the deluxe model). Remember that total weekly production is limited to 5000 corkscrews. Develop an MPS for each of the products.
Prepare a master schedule given this information: The forecast for each week of an eight-week schedule is 60
units. The MPS rule is to schedule production if the projected on-hand Inventory would be negative without it.
Customer orders (committed) are as follows:
Week
1
2
3
Customer Orders
54
38
25
20
Use a production lot size of 73 units and no beginning inventory. (In the ATP row, enter a value of 0 (zero) In any
perlods where ATP should not be calculated. Leave no cells blank - be certain to enter "0" wherever required.)
June
July
MPS
ATP
Forecast
Customer Orders
Projected On-Hand Inventory
60
54
2
60
38
3
60
25
4
60
20
5
60
0
6
60
0
7
60
0
8
60
0
Chapter 13 Solutions
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
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
- Week 1 3. 4 Forecast 45 45 45 45 Customer Order 42 45 42 50 Given the following data, calculate the projected available balance. The demand time fence is the end of week 3, the order quantity is 100, and 40 are available at the beginning of the periodarrow_forwardElectro Fans has j ust received an order for one thousand 20-inch fans d ue week 7. Each fan consists of a housing assembly, two grill s, a fan assembly, and an electrical unit.The housing assembly consists of a frame, two supports, and a handle. The fan assembly consists of a hub and five blades. The electrical unit consists of a motor, a switch, and a knob.The following ta ble gives lead times, on-hand inventory, and scheduled receipts.a) Construct a product structure.b) Construct a time-phased product structure.c) Prepare a net material requirements plan.arrow_forwardThe Silver Star Bicycle Company will be manufacturing both men's and women's models of its Easy-Pedal 10-speed bicycles during the next two months. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 men's and 125 women's models to be shipped during the first month and 200 men's and 150 women's models to be shipped during the second month. Additional data are shown: Production Labor Requirements (hours) Current Model Costs Manufacturing Assembly Inventory Men's $120 2.0 1.5 20 Women's $90 1.6 1.0 30 Last month the company used a total of 1000 hours of labor. The company's labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of…arrow_forward
- Prepare a master schedule based on the following information: Week 1 2 3 4 5 6 7 8 Forecast 500 500 600 600 750 750 900 800 Orders 540 470 325 200 105 45 10 0 Currently there are 700 units in inventory. Policy calls for a fixed order quantity of 1250 units. Can you receive another order for 250 items in week 1? Why? How many orders can be received in each period without altering the plan. If there are 1250 items in stock, what would be the answer of questions 2 and 3?arrow_forwardA phone production company must prepare the production planning for the next 9 weeks. Complete the below table considering this information: Lead Time = 3 Weeks On-hand inventory of 52 phones from week 1. Receipt from an outside supplier of 15 phones at start of week 7 We need to supply 75 phones on week 4. We need to supply 120 phones on week 9. Product A Week 1 2 3 4 5 6 7 8 9 Gross Requirement On-hand inventory Planned orderarrow_forwardA manager is attempting to put together an aggregate plan for the coming nine months. She has obtained a forecast of expected demand for the planning horizon. The plan must deal with highly seasonal demand; demand is relatively high in periods 3 and 4 and again in period 8, as can be seen from the following forecasts: Period 1 2 3 4 5 6 7 8 9 Total Forecast 190 230 260 280 210 170 160 260 180 1,940 The department now has 20 full-time employees, each of whom can produce 10 units of output per period at a cost of $6 per unit. Inventory carrying cost is $5 per unit per period, and backlog cost is $10 per unit per period. The manager is considering a plan that would involve hiring two people to start working in period 1, one on a temporary basis who would work only through period 5. This would cost $500 in addition to unit production costs. a. What is the rationale for this plan?arrow_forward
- The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March April Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August Demand 1,400 1,500 1,600 1,800 2,100 2,300 1,400 1,500 1,600 1,800 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 plans D and E. Plan D: Keep the current workforce stable at producing 1,600 units per month. In addition to the regular production, another 20% of the normal production units can be produced in overtime at an additional cost of $50 per unit. A warehouse now constrains the maximum allowable inventory on hand to 600 units or less. Note: Do not produce in overtime if production or inventory are adequate to cover demand. 1,800 1,400…arrow_forwardRebalance Rebalance (RB) is a New England sneaker manufacturer that plans to release a high per-formance running shoe { the Rebalance Air (RBA) sneaker { in the US. RB divides the US into four major zones, each of which has come back with an estimate of demand. The planning team at RB needs to use this and other information to decide on a manufacturing quantity for the RBA sneaker in Fall 22 (the first season that will see the introduction of the RBA). 1. The RBA is manufactured in Mainland China and costs RB $60 per pair to manufacture. The sneaker retails for $220. So as to protect this nascent new design,RB will not put the sneaker on clearance (if at all needed) until Summer 23 at which point it expects to only recover $52 per sneaker. What service level should RB choose to manufacture to? 2. The East, West, Central and South teams each expect demand of 80,000 units. The demand planning teams in each of these regions are only somewhat accurate so you can expect the coefficient of…arrow_forwardAn end item’s demand forecasts for the next 10 weeks are30, 30, 30, 30, 20, 20, 30, 30, 30, and 30 units. The current on-hand inventory is 100 units. The order policy is to produce inlots of 75. The booked customer orders for the item, startingwith week 1, are 15, 38, 7, 5, 0, 3, 10, 0, 0, and 0 units. The leadtime is 2 weeks.a. Develop an MPS for this end item.b. The marketing department has received five orders forthis item in the following sequence:Order 1 is for 20 units to be delivered in period 1Order 2 is for 75 units to be delivered in period 4Order 3 is for 90 units to be delivered in period 6 Order 4 is for 75 units to be delivered in period 7Order 5 is for 90 units to be delivered in period 10 Assuming that the prospective MPS you developed in part (a)does not change, which orders would you be able to acceptbased on the available to promise (ATP)?arrow_forward
- An end item’s demand forecasts for the next 10 weeks are 30, 30, 30, 30, 20, 20, 30, 30, 30, and 30 units. The current onhand inventory is 100 units. The order policy is to produce in lots of 75. The booked customer orders for the item, starting with week 1, are 15, 38, 7, 5, 0, 3, 10, 0, 0, and 0 units. The lead time is 2 weeks.a. Develop an MPS for this end item.b. The marketing department has received five orders for this item in the following sequence:Order 1 is for 20 units to be delivered in period 1Order 2 is for 75 units to be delivered in period 4Order 3 is for 90 units to be delivered in period 6Order 4 is for 75 units to be delivered in period 7Order 5 is for 90 units to be delivered in period 10Assuming that the prospective MPS you developed in part (a) does not change, which orders would you be able to accept based on the available to promise (ATP)?arrow_forwardThe Shades Sunglass Company assembles sunglasses from frames, which it makes,and lenses, which it purchases from an outside supplier. The sales department hasprepared the following 6-week forecast for Ebony, a popular model. The sunglassesare assembled in lots of 220, and the opening inventory is 300 pairs. Complete theprojected available balance and the master production schedule.arrow_forwardWormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six months using the following information.Month1 2 3 4 5 6Demand 160 150 160 180 170 140CapacityRegular 150 150 150 150 160 160Overtime 10 10 0 10 10 10Cost Per UnitRegular time $50Overtime 75Subcontract 80Inventory holding, per month 4Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero.Develop a plan that minimizes total cost. No back orders are allowed. Regular capacity = Regularproduction.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,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY