Operations Management: Sustainability and Supply Chain Management (12th Edition)
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 8P
Summary Introduction

To determine: The total cost of an aggregate plan by using hiring or layoff.

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 encompasses a time prospect of approximately 3 to 18 months.

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QUESTION 1 A master production schedule shows the following information MPS Week Week Week Week Beginning inventory = 300 31 Forecast 1.000 1,200 1,300 1.200 800 700 Actual customer orders Projected on-hand inventory Available to promise 800 1,000 MPS Based on the information in the MPS, what is the amount that is available to promise in week 4? O a. 1,200 Ob.700 Oc. 1.500 O d. 500
Question 4 b) Company ABC wishes to evaluate whether to produce a component internally or purchase from a vendor. The firm has the following options: Internal Production Process 1 Process 2 Purchase from Vendor Vendor 1 Vendor 2 Vendor 3 Variable cost of $17 per unit; annual fixed cost of $200,000 Variable cost of $14 per unit; annual fixed cost of $240,000 Offers a price of $20 per unit for any volume up to 30,000 units Offers a price of $22 per unit for 1,000 units or less, and $18 per unit for large quantities Offers a price of $21 per unit for the first 1,000 units and $19 per unit for additional units If the annual demand is 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best?
PRODUCTION AND OPERATIONS MANAGEMENT Q5LAB 1
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