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 6P
a)
Summary Introduction
To evaluate: Plan D
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 E
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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A 98.
The XYZ company has two plants producing "K Specials". It has the following expected data
for the next month's operations. Variable (incremental) costs vary linearly from zero
production to maximum capacity production.
plant A
plant B
Max. Capacity, units
1,000
800
Total fixed cost
750,000
480,000
Variable (incremental) Costs
Max. Capacity
900,000
800,000
Performance has not been good, so the company expects to receive domestic orders
for only 1,200 units next month at a price of 1,400 per unit. How should the production be
distributed between the plants for optimum economic operation?
A. Plant A should produce 800 units and 400 units for Plant B.
B. Plant A should produce 1,000 units and 200 units for Plant B.
C. Plant A should produce 700 units and 500 units for Plant B.
D. Plant A should produce 900 units and 300 units for Plant B.
Consuela Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data: What will each of the two fo llowing strategies cost?a) Vary the workforce so that production meets demand. Chuahad eight workers on board in June.b) Vary overtime only and use a constant workforce of eight.
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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- answer needed with step by step explanarrow_forwardPlease assist with the following questionsarrow_forward10:44 O 3 all 29% د. اسماء الرحبي ي 18 April, 10:44 am Level Capacity Production Plan Problem o Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a steady regular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine. o Develop a Level capacity plan and compute the total cost of Ending Inventory. MONTH 1 4 8 Forecast 120 135 140 120 125 125 140 135arrow_forward
- Problem #2- Brown Manufacturing-Modified, from textbook page #198 If the annual demand is reduced to 8,000 units, the set-up costs increased to $120, inventory carrying cost increased to $0.60 per unit per year and the demand during the production period is maintained at 60 units per day and 80 units can be manufactured daily, calculate а. The optimum production quantity (Q*) per production run (or per production lot). b. ( ne length of each production run. с. ( The number of production runs per year. Page 2 of 4 Scanned with CamScannerarrow_forwardHill’s operations manager (see Problems 13.3 through13.5) is also considering two mixed strategies for January–August: Produce in overtime or subcontracting only when there isno inventory.◆ Plan D: Keep the current workforce stable at producing1,600 units per month. Permit a maximum of 20% overtime atan additional cost of $50 per unit. A warehouse now constrainsthe maximum allowable inventory on hand to 400 units or less.◆ Plan E: Keep the current workforce, which is producing 1,600units per month, and subcontract to meet the rest of the demand.Evaluate plans D and E and make a recommendation.arrow_forwardConsuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data. There are 8 hours of production per day. Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Costs $8/disk drive/Month $80/disk drive Month $12/hour $18/hour (above 8 hours) $40/worker $80/worker 0 June 1 July 2 August 3 September 4 October 5 November 6 Doramhar What will each of the two following strategies cost? a) Vary the workforce so that production approximates demand. Chua had eight workers on board in June. (Enter all responses as whole numbers). Demand* Fill in the table below. (Enter all responses as whole numbers. In the hire/layoff column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) 400 500 550 700 800 700 Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory 150 Other Data 20 days Beginning Inventory 150 disk…arrow_forward
- After researching revenue (yield) management in airlines,describe how the Magic system differs from that of Americanor other airline carriers.arrow_forwardSoutheastern Oklahoma State University's businessprogram has the facilities and faculty to handle an enrollmentof 2,000 new students per semester. However, in an effortto limit class sizes to a "reasonable" level (under 200, generally),Southeastern's dean, Holly Lutze, placed a ceiling on enrollmentof I ,500 new students. Although there was ample demand forbusiness courses last semester, conflicting schedules allowed onlyI ,450 new students to take business courses. What are the utilizationand efficiency of this system?arrow_forwardBetty's Bakery has the following standard cost sheet for one unit of its most popular cake: Direct materials Direct labor SP SQ 1.2 pounds 0.8 hours $ 12.00 per hour $ 1.50 per pound During the month of May, the company made 640 cakes and incurred the following actual costs: Direct materials purchased and used (940 pounds), $1,222 Direct labor (700 hours), $8,050 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials spending variance. 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to two decimal places. 1. Direct materials price variance 2. Direct materials quantity variance 3. Total direct…arrow_forward
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