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 2CS
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 implications of closing a plant.
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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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