Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 13, Problem 1CS
Summary Introduction
Case summary:
Company AC is a distributor and producer of outdoor lighting fixtures. It operates three different plants to produce outdoor lighting fixtures and has five distribution centers. The capacity of distribution centers is as follows:
| Warehouse | Capacity (units) |
| Warehouse 1 | 9,000 |
| Warehouse 2 | 13,000 |
| Warehouse 3 | 11,000 |
| Warehouse 4 | 15,000 |
| Warehouse 5 | 8,000 |
Capacity of the three plants is given as follows:
| Plants | Capacity (units) |
| Plant 1, regular time | 27,000 |
| Plant 1, overtime | 7,000 |
| Plant 2, regular time | 20,000 |
| Plant 2, overtime | 5,000 |
| Plant 3, regular time | 25,000 |
| Plant 3, overtime | 6,000 |
Variable cost and fixed cost of each plant are given as follows:
| Plant | Variable cost per unit | Fixed cost per unit | |
| Operating | Not operating | ||
| Plant 1, regular time | $2.80 | $14,000 | $6,000 |
| Plant 1, overtime | $3.52 | ||
| Plant 2, regular time | $2.78 | $12,000 | $5,000 |
| Plant 2, overtime | $3.48 | ||
| Plant 3, regular time | $2.72 | $15,000 | $7,500 |
| Plant 3, overtime | $3.42 | ||
Distribution cost per unit is given as follows:
| From plants | Warehouse 1 | Warehouse 2 | Warehouse 3 | Warehouse 4 | Warehouse 5 |
| Plant 1 | $0.50 | $0.44 | $0.49 | $0.46 | $0.56 |
| Plant 2 | $0.40 | $0.52 | $0.50 | $0.56 | $0.57 |
| Plant 3 | $0.56 | $0.53 | $0.51 | $0.54 | $0.35 |
To determine: The various configurations of operating and closed plants and the configuration that would minimize the total cost.
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Question 4) APP Linear Programming
Given the following information:
Quarter Demand
Regular Prod. Capacity = 3,000 units/gt
8,000 Overtime Prod. Capacity = 800 units/gtg
4,000 Subcontracting Capacity = 1,800 units/gt
Regular Prod. Cost = $20/unit
Overtime Prod. Cost = $25/unit
1
2
2,000 Inventory Capacity
= 6,000 untis/atr
Subcontracting Cost = $35/unit
Inventory Cost
3
Beginning Inventory
= 500 units
= $4/unit/gtr
Linear programming is to be used to determine a production plan strategy of Level Production,
Overtime, and Subcontracting.
a. Formulate the Objective Function (note that there are 3 quarters).
b. Formulate all Constraints (standardized).
c. How many decision variables are in the model?
d. How many constraints are in the model? (do not include non-negativity constraints)
Question 34
The term "soft constraints" is associated with which of the following?
Goal Programming
Expected Monetary Value
Network Models
Integer Programming
QUESTION 2
NAK Consult Ltd is a construction company with many contracts being executed concurrently. A large
number of workers are on various construction sites. NAK Consult Ltd has an internal audit department
and the team is currently reviewing cash wages systems within the company. The following information is
available concerning the wages systems:
• Workers on each site are controlled by a foreman. The foreman has a record of all employee numbers and
can issue temporary numbers for new employees.
• Any overtime is calculated by the computerized wages system and added to the standard pay.
• The two staff in the wages department make amendments to the computerized wages system in respect of
employee leave, illness, as well as setting up and maintaining all employee records.
• The computerized wages system calculates deductions from gross pay, such as employee taxes (PAYE),
and other statutory deductions.
• Finally, a list of net cash payments for each employee is produced. Cash is…
Chapter 13 Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
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. 24PCh. 13 - Prob. 25PCh. 13 - Prob. 26PCh. 13 - Prob. 1CSCh. 13 - Prob. 2CSCh. 13 - Prob. 1VCCh. 13 - Prob. 2VCCh. 13 - Question: 3. What are some concerns the team needs...
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