a)
To evaluate: Plan A and plan B.
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)
To determine: The best plan between plan A and plan B
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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Chapter 13 Solutions
Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
- QUESTION 1 AJ Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand 1 1300 2 1400 3 1500 4 1300 Previous quarter's output = 1,500units Beginning inventory = 200units Stockout costs = $50 per unit Inventory holding cost = $10 per unit at end of quarter Hiring workers = $4 per unit Firing workers = $8 per unit Unit cost = $30 per unit Overtime = $10 extra per unit a) Which of the following production plans is better: Plan A - chase demand by hiring and firing: or plan B - product at a constant rate of 1200 and obtain remainder from overtime? b) Explain the differences between repair and preventive maintenance? c) Explain the implications of each approach when developing an asset maintenance strategy? d) Explain the benfits and challenges associated with the implementation of an MRP system?arrow_forward2arrow_forwardSubject: Logistic management Q): What are the ways to reduce inventory levels, explain with examples?arrow_forward
- Subject: Logistic management Q): calculate inventory turn over ratio, Where sales is 2,000,000COGS is 65% of sales And average inventory is 125,435 What will be inventory ratio in days and weeksarrow_forwardAggregate Planning and S&OP Ch13 13.22 Uriel Southeastern Airlines's daily flight from Atlanta to Charlotte uses a Boeing 737, with all-coach seating for 120 people. In the past the airline has priced every seat at $140 for the one was fight. An average of 80 passengers are on each flight. The variable cost of a filled seat is $25. Katie Morgan, the new operations manager, has decided to try a yield revenue approach, with seats priced at $80 for early bookins and at $190 for bookings within 1 week of flight. She estimates that the airline will sell 65 seats at the lower prie and 35 at the higher price. Variable cost will not change. Which approach is preferabble for Ms. Morgan? Information All coach seating One price in past Average Variable cost Potential Changes Early booking Book within 1 week Variable cost stays $ $ $ $ 120 People 140.00 80 Seats booked 25.00 80.00 $190.00 25.00 Estimated seats: Estimated seats: 65 35arrow_forwardQuestion 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?arrow_forward
- Problem 1 The following information applies to the City View Restaurant. May 1 Food inventory value: $73,480 bnl de May 31 Food inventory value: $77,550 bonen Cost of food used during May $386,410 1. What is the inventory turnover rate for food products for the City View Restaurant? 2. What does the answer (inventory turnover ratio) in question 1 mean?arrow_forwardQ2) 3. What is long range plan?arrow_forwardQuestion 2 Rohe (Hong Kong) Ltd is a pharmaceutical company which manufactures and supplies various drugs for drug stores in Asia. Currently, Rohe (Hong Kong) Ltd has four factories A, B, C and D. Management has decided to build a new factory at a location central to these factories. Information regarding the yearly demands and the map coordinates for the four factories are shown in below table. Factories Demand - x-coord 9,000- 3,000- 5,000 y-coord 130 40 A Be 20 60 Ce 70 100 De 16,000- 90 30 (a) Determine the map coordinates of the new factory. (b) Suggest and elaborate TWO other factors that need to consider in the selection of location. «arrow_forward
- QUESTION 1 Manager T. C. Downs of Plum Engines, a producer of lawnmowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a regular output capacity of 105 engines per month. Regular output has a cost of $65 per engine. The beginning inventory is zero engines. Overtime has a cost of $120 per engine. Month Total Forecast 95 100 115 400 Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $3 per engine per month. Backlog cost is $100 per engine per month. There should not be a backlog in the last month. Set regular production equal to the monthly average of total forecasted demand Assume that using overtime is not an option. (Negative amounts should be indicated by a minus sign. Leave no celis blank - be certain to enter "0" wherever required. Round average inventory row, Inventory cost row, and Total row values to 1 decimal. Do not write the Dollar sign (S))arrow_forwardQuestion 5: A Mechanical Design Company produces an innovative design of Batttery used for electric cars. The standard design of producing one(1) unit of Battery is provided in the bill of materials BOM which requires material mix shown in Table Q5a. The current monthly production of Battery is 2000 units per month with the actual material consumption shown in Table Q5b. Determine the following and justify why it is favorable or adverse. (i) Material usage variance; (ii) Material price variance; (ii) Total material cost variance; Table Q5a Usage (units) 5 Materials Total cost (OMR) V 17 W 3 38 X 8 50 Y 38 Table Q5b Usage (units) 12,047 6,902 17,556 4,122 Total cost (OMR) 50,526 94,083 103,953 76,408 Materials V W Yarrow_forwardSubject: Procurement & sourcing Q): What are the total expenses in purchasing materials of K&N's need 03 years comparision?arrow_forward
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