EBK PRINCIPLES OF OPERATIONS MANAGEMENT
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175644
Author: Munson
Publisher: VST
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Chapter 13, Problem 9P

a)

Summary Introduction

To evaluate: Plan A and plan B, and determining which plan is preferable.

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: 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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The total cost, excluding normal time labor costs, for Plan A = $. (Enter your response as a whole number.) Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $30 per unit produced. The cost of layoffs is $65 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1000 in August requires a layoff (and related costs) of 300 units in August). Month 1 2 3 September 4 October July August 5 November 6 December Demand 1000 1200 1400 1800 1800 1800 Hire Production (Units) The total hiring cost = $ The total layoff cost = $ The total inventory carrying The total stockout cost = $ The total cost, excluding normal time labor costs, for Plan B = (Enter your response as a whole number.) (Enter your response as a whole number.) cost = $ (Enter your response as a whole number.) Layoff…
The S&OP team at Ka nsas Furniture has received thefo llowing estimates of demand requirements:                                                                                          a) Assuming one-time stockout costs for lost sales of $ 100 perunit, inventory carrying costs of $25 per unit per month, andzero beginning and ending inventory, evaluate these two planson an incremental cost basis:• Plan A: Produce at a steady rate (equal to minimum requirements)of I ,000 units per month and subcontract additionalunits at a $60 per unit premium cost.• Plan B: Vary the workforce, to produce the prior month'sdemand. The fi rm produced I ,300 units in June. The cost ofhiring additional workers is $3,000 per 100 units produced.The cost of layoffs is $6,000 per l 00 units cut back.Nore: Both hiring and layoff costs are incurred in the month of thechange, (i.e., going from production of I ,300 in July to 1,000 inAugust requires a layofT [and related costs] of 300 units in August,j ust as…
Points: 0 of 1 Save The S&OP team at Kansas Furniture, has received estimates of demand requiroments as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory evaluate the following plan on an incremental cost basis Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additional units at a $60 per unit premium cost Subcontracting capacity is limited to 500 units per month (Entor all responses as whole numbers) ETIT Ending Production Inventory 1,200 Subcontract Month 1 July 2 August 3 September Demand 1200 (Units) 1300 1,200 1200 1,200 October 1700 1,200 1,200 5 November 6 December 1650 1400 1,200
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