Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 13, Problem 9DQ
Summary Introduction
To define: Advantages and disadvantages of varying the workforce according to 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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
QUESTION THREEa) Zambia Breweries has a backlog of 250 crates of Fanta drinks at the end of December. The demand of Fanta drinks is expected to be 400 crates in January, 500 crates in February and 550 crates in March. Each worker can produce 50 crates of drinks per month with regular wage costing the company K10 000 per worker per month. Hiring cost has been calculated to be K25 000 per. Hiring cost has also been calculated to be K50 000 per worker. Backlog cost have been determined to cost the company K250 per worker. There are no cost associated with carrying the inventory.
Develop a level of production plan (aggregate plan) and determine the cost.
b) Explain why aggregate planning is necessary in production and operation management.c) Define the meaning and what happens at each of these aggregate capacity planning;i) Matching Demand approachii) Level Capacity approach.
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…
QUESTION 1
Kofi Kwakye is a 17-year old final year Senior High student from a wealthy home. His academic life had been
quite eventful, as he had been part of the top 10 students in his class and had dropped to be part of the last 10
students during the past school term. On 28th May 2022, in the heat of the preparation towards the final
examination, Kofi Kwakye took exeat from school to acquire some "provisions" to enable him cope during the
final exam period, which was three months ahead. He entered a shop in Accra and, instead of focusing on the
"provisions", he purchasee the following items: Microsoft Xbox, the latest iPhone, and a three-piece suit by
Pierre Cardin.
Kofi Kwakye did not have enough money to pay for all the items at once. He, therefore, agreed with the shop
owner, Mr. Ametepe, to pay the outstanding amount owed in five instalments. However, after paying the first
instalment, Kofi Kwakye fell into arrears. The two parties then entered into another arrangement under…
Chapter 13 Solutions
Operations Management
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. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 1CSCh. 13 - Prob. 2CSCh. 13 - Prob. 1VCCh. 13 - Prob. 2VCCh. 13 - Question: 3. What are some concerns the team needs...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- QUESTION TWO * Blue Inc. produces a product that has a 6 month demand cycle, as shown below. Each unit requires 10 worker hours to produce, at a labour cost of K6, 000 per hour regular rate or K9, 000 per hour overtime rate. The total cost per unit is estimated at K200, 000 but units can be subcontracted at a cost of K208, 000 per unit. There are currently 20 workers employed in the subject department, and hiring and training costs for additional workers are K300,000 per person; whereas layoff costs are K400,000 per person. Company policy is to retain a safety stock equal to 20% of the monthly forecast, and month's safety stock becomes the beginning inventory for the next month. There are currently 50 units in stock carried at a cost of K2, 000 per unit month. Unit shortage, or stockpots, has been assigned a cost of K20, 000 per unit month. February March April 400 100 21 21 168 May 200 22 176 June 300 20 January 300 Forecast demand 500 Work days 22 19 176 152 168 160 Work hour at 8…arrow_forwardQUESTION 1 The enrollment of the new students at ABC University has increased steadily over the past few years. The university would like to plan the workforce for academicians for year six to year eight. The reyulalury buuy, Malaysian Acuredilaliun Ayency (MQA) has set the standard of the ratio between academicians and student to be 1:50. The data below show the number of students enrolled for the past five years. Year Demand 4500 5000 5200 1 2 3 4 5600 5800 The university's administration considers using simple regression analysis to forecast the number of students enrolled in the next three years. a) Use simple linear regression to forecast the annual number of students enroll for the next three years. b) Determine the correlation coefficient for the data and interpret its meaning. c) Determine the coefficient of determination for the data and interprot its moaning. d) Determine the number of academicians that can fulfill the MQA standard for year six.arrow_forwardquestion 1 Terminator, Inc., manufactures a motorcycle part in lots of 250 units. The raw materials cost for the part is $150, and the value added in manufacturing 1 unit from its components is $280, for a total cost per completed unit of $430. The lead time to make the part is 3 weeks, and the annual demand is 4,200 units. Assume 50 working weeks per year. a. How many units of the part are held, on average, as cycle inventory? nothing units. (Enter your response as an integer.) What is its value? $_______.(Enter your response as an integer.) b. How many units of the part are held, on average, as pipeline inventory? nothing units. (Enter your response as an integer.) What is its value? $________________ (Enter your response as an integer.)arrow_forward
- QUESTION 9 Consider a SKU with 276 picks forecasted during the planning horizon and an annual flow of 2000 ft. Suppose that: • the cost of picking from the forward fast-pick area is 1 minute per pick • the cost of picking from the reserve area is 4 minutes per pick • the cost of restocking the fast-pick area from reserve is 5 minutes per restock What is the labor efficiency of this SKU? Provide your answer to the nearest single decimal point.arrow_forwardQuestion 3 Gajah Sdn Bhd makes two products (Alpha and Beta) that require direct materials, direct labour and overhead. The operations for next month are: Alpha RM Beta Revenue Direct material Direct labour Overhead: Direct material related Direct labour related RM 300,000 60,000 95,000 Total RM 400,000 90,000 135,000 100,000 30,000 40,000 13,500 40,500 Required : a) Gajah uses a two-stage cost allocation system. It uses direct material costs to allocate direct materials related overhead and direct labour costs to allocate direct labour related overhead costs: i. Calculate the direct material related overhead rate for next month. ii. Calculate the direct labour related overhead rate for next month iii. What is the total overhead allocated to product Alpha next month? iv. What is the total overhead allocated to product Beta next month?arrow_forwardQuestion 5 Terminator, Inc., manufactures a motorcycle part in lots of 150 units. The raw materials cost for the part is $150, and the value added in manufacturing 1 unit from its components is $320, for a total cost per completed unit of $470. The lead time to make the part is 2 weeks, and the annual demand is 3,800 units. Assume 50 working weeks per year. a. How many units of the part are held, on average, as cycle inventory? __________________ units. (Enter your response as an integer.) What is its value? $___________________ (Enter your response as an integer.) b. How many units of the part are held, on average, as pipeline inventory? ________________ units. (Enter your response as an integer.) What is its value? $__________________________ (Enter your response as an integer.)arrow_forward
- QUESTION 1 According to the time-based strategy, check out this scenario. if the processing time is reduced from 2 hours per a product, to only 1 hour per product, the time to market will be longer and customer service is not enhanced O True O False QUESTION 2 Quantity Year 1 Year 2 J F M A M J JASOND Months O True O False O Not enough information Based on theabove figure, the demand pattern is seasonal in which you can notice that April month in year 2 has the highest possible demand value.arrow_forwardQuestion 3: Table 2A Expected return for asset x (%) 13 Risk free rate (%) 5 Beta of asset X 0.85 Table 2B Expected portfolio return Portfolio beta Proportion of portfolio in Asset X 0.00 0.25 0.50 0.75 1.00 1.25 There are two portfolio choices. Portfolio A comprises of stocks from following companies: Clothing materials, beauty products, footwear and handbags. Portfolio B consists of stocks from following business: crude oil, information technology, food products and electircal goods. From a diversification perspective, which portfolio will be a better investment? Explain your reasoning in no more than 75 words.arrow_forwardQuestion 34 The term "soft constraints" is associated with which of the following? Goal Programming Expected Monetary Value Network Models Integer Programmingarrow_forward
- Question 4.4 Montreal Hardware Co. is making a make-or-buy decision. The market feedback shows that the optimal price for this item is $10 each. If the item is outsourced to Laval Hardware Co, there is virtually no cost other than the $6 per unit that they would pay Laval Hardware Co. Internally, they have two choices. Process A requires an investment of $120,000 for design and equipment, but it results in a $4 per unit cost. Process B requires only a $100,000 investment, but its per unit cost is $5. Regardless of whether the item is subcontracted or produced internally, there is a 50% chance that they will sell 50,000 units, and a 50% chance that they will sell 100,000 units. Draw the decision tree appropriate to the alternatives and outcomes stated. Using the decision tree and EMV, what is their best choice?arrow_forwardQUESTION TWO An aggregate plan is to be developed for the forecast of demand covering nine periods shown in Table below. Other relevant production and cost information is also provided. Find the cost associated with an aggregate plan that involves varying the size of the work force in order to have a production rate that matches demand. Note: Since this plan does not allow for any inventory build-up, a decision has been made to carry 10 units of safety stock, but no overtime or subcontract labour is used. Table showing Demand, production, and cost information Month Jan. Feb. Mar. April May June July Aug. Sept. Total Forecast 40 25 30 60 40 55 30 50 30 360 Production information Cost information Current number of workers Worker time/month Time to produce one unit 10 Hiring cost K600/employee 160 hrs Layoff cost K500/employee 40 hrs Regular time cost K30/hr Individual worker output Overtime cost K45/hr (160 hr/month/40 hr/unit) Subcontract labour K50/hr 4 units cost Safety stock of…arrow_forwardQuestion no 1: Nuts & Legumes is one of the major suppliers of pulses and dry fruits in Pakistan. Overhead is applied to jobs on the direct labor cost basis as they are using a job-order costing system. An estimated $330,000 of manufacturing overhead for an estimated activity level of $200,000 direct labor dollars and this data is used to calculate the predetermined overhead rate. Opening inventory balances were as follows: Finished goods . . . . . . . . . . . . . . . . . . . . $40,000 Work in process . . . . . . . . . . . . . . . . . . . . $10,000 Raw materials . . . . . . . . . . . . . . . . . . . . . $25,000 During the year, the following transactions were completed: Raw materials requisitioned for use in production, $280,000 (21.43% of this material were indirect). They purchased Raw materials of $275,000. From A&H foods. Human resource department provides the following data: Total Labor Cost was $252,000 out of which $72,000 was indirect labor Sales…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.