EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175859
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…
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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
Chapter 13 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
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. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 23PCh. 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. 1.3VC
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Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY