Whether plan 5 will be suitable to maintain a constant workforce in order to meet the demand. Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

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Answer 1

Question

Chapter 13, Problem 2P

a)

Summary Introduction

To determine: Whether plan 5 will be suitable to maintain a constant workforce in order to meet the demand.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

b)

Summary Introduction

To determine: Plan 6 to maintain the constant workforce and use the subcontract to meet the demand requirement.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

c)

Summary Introduction

To summarize: The results from Plan 1 to Plan 6

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5. Formulate a level sales and operations plan for a company with the following predicted demand: Month Demand 6,300 2 9,000 3 6,000 4 9,000 5 15,000 6 6,000 Total 51,300 The beginning workforce is 125 employees. The monthly output per employee is 150 units. The costs to hire and lay off a worker are $2,500 and $4,000, respectively. The cost to carry an item in inventory for one month is estimated at $10, and the stockout cost is $25 per unit. Show the production schedule, the inventory levels, and the changes in workforce from period to period. Compute the plan's cost.

Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters. The number of available days of production and the anticipated demand are given below. Employees Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Demand Q1 2,400 6,019,000 They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below. 30 70 units/employee/quarter Q2 2,200 $1,000/unit $200/unit/quarter $1,500/unit <= 25% of Reg. Production Q3 1,700 Q4 1,800 Hire Cost Fire Cost Subcontracting Cost Subcontracting Limit Inventory Cost Initial Inventory $1,200/employee $800/employee $1,800/unit 400 units maximum $100/unit/quarter 280 units Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with inventory and backorders as needed. What is the total cost of this…

4.) After 10 years of production, the chemical manufacturing plant has become very successful. Because of its success, a great demand for products came as many consumers wanted the company to sell them their products. To meet the demand, three alternatives were considered. Work overtime to meet demands. Annual overtime expenses are $500,000. Expand the plant to accommodate more production. Fixed annual expenses are $2,500,000. Make a contract with another company to produce additional products at a rate of $1,000,000. The cost of manufacturing products from the three alternatives are $3500, $3000 and $3250 per unit respectively. The plant sells every unit made regardless of how they were made at $15,000 per unit. The expected demand for the product is 150 units with a probability of 50% 250 units with a probability of 35% 350 units with a probability of 7.5% 400 units with a probability of 5% 500 units with a probability of 2.5%

Answer 2

Question

Chapter 13, Problem 2P

a)

Summary Introduction

To determine: Whether plan 5 will be suitable to maintain a constant workforce in order to meet the demand.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

b)

Summary Introduction

To determine: Plan 6 to maintain the constant workforce and use the subcontract to meet the demand requirement.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

c)

Summary Introduction

To summarize: The results from Plan 1 to Plan 6

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Answer 3

Question

Chapter 13, Problem 2P

a)

Summary Introduction

To determine: Whether plan 5 will be suitable to maintain a constant workforce in order to meet the demand.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

b)

Summary Introduction

To determine: Plan 6 to maintain the constant workforce and use the subcontract to meet the demand requirement.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

c)

Summary Introduction

To summarize: The results from Plan 1 to Plan 6

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Answer 4

Question

Chapter 13, Problem 2P

a)

Summary Introduction

To determine: Whether plan 5 will be suitable to maintain a constant workforce in order to meet the demand.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

b)

Summary Introduction

To determine: Plan 6 to maintain the constant workforce and use the subcontract to meet the demand requirement.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

c)

Summary Introduction

To summarize: The results from Plan 1 to Plan 6

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Answer 5

Chapter 13, Problem 2P

a)

Summary Introduction

To determine: Whether plan 5 will be suitable to maintain a constant workforce in order to meet the demand.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

b)

Summary Introduction

To determine: Plan 6 to maintain the constant workforce and use the subcontract to meet the demand requirement.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

c)

Summary Introduction

To summarize: The results from Plan 1 to Plan 6

Answer 6

Chapter 13, Problem 2P

a)

Summary Introduction

To determine: Whether plan 5 will be suitable to maintain a constant workforce in order to meet the demand.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

Answer 7

Chapter 13, Problem 2P

a)

Summary Introduction

To determine: Whether plan 5 will be suitable to maintain a constant workforce in order to meet the demand.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

Answer 8

b)

Summary Introduction

To determine: Plan 6 to maintain the constant workforce and use the subcontract to meet the demand requirement.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

Answer 9

b)

Summary Introduction

To determine: Plan 6 to maintain the constant workforce and use the subcontract to meet the demand requirement.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

Answer 10

c)

Summary Introduction

To summarize: The results from Plan 1 to Plan 6

Answer 11

c)

Summary Introduction

To summarize: The results from Plan 1 to Plan 6

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 13 - Make the case for, and then against, this pricing...Ch. 13 - Prob. 1DQ Ch. 13 - Why are SOP teams typically cross-functional?Ch. 13 - Prob. 3DQ Ch. 13 - Prob. 4DQ Ch. 13 - Prob. 5DQ Ch. 13 - Prob. 6DQ Ch. 13 - Prob. 7DQ Ch. 13 - Prob. 8DQ Ch. 13 - Prob. 9DQ

Solution Summary: The author explains that plan 5 is not preferable over Plan 2. It is the output of sales and operations planning. The average daily production requirement is 50 units per day.

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To summarize: The results from Plan 1 to Plan 6

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Chapter 13 Solutions