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 18P
Summary Introduction
To determine: The minimum cost using the transportation method.
Introduction: Aggregate planning using transportation method helps to attain minimum cost using the optimal plan. The major advantage of transportation method is to achieve the optimal solution using optimal plans.
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Oliver Munday has developed the following supply, demand, cost and inventory data (provided below). He has requested you to allocate production capacity to meet demand at minimum cost using the transportation method. Determine the cost of the plan. Assuming the initial inventory has no holding cost in the first period and backorders are not permitted. Use the provided information to answer the questions.
Initial Inventory
20 units
Regular-time cost per unit
R100
Overtime cost per unit
R150
Subcontract cost per unit
R200
Carrying cost per unit
R4
Period
Regular Time
Overtime
Sub-contract
Demand Forecast
1
30
10
5
40
2
35
12
5
50
3
30
10
5
40
Advise the MD, providing detailed explanation using the table above.
West Indies Batting Inc is again on the rise due to the increasing sale of cricket bats throughout the region. BATS R’ US, a cricket bat-making company located in Charlestown, Nevis has been at the forefront of this increasing sales for cricket bats. The monthly demand in sales at BATS R’ US is provided in the table below.
1. Compute a three-period moving average and a four-period moving average for weeks 5, 6, and 7.
2. Compute the MAD for both forecasting methods.
3. Which model is more accurate?
4. Forecast week 8 with the more accurate method.
Month
Sale of bats
1
119
2
147
3
189
4
217
5
133
6
119
7
147
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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