Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
9th Edition
ISBN: 9781119371618
Author: Roberta S. Russell
Publisher: Wiley (WileyPLUS Products)
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 18P
Summary Introduction
To determine: The production plan that would satisfy the demand at minimum cost.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Snip
Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 90,000; March 65,000; April 110,000; May, 55,000. Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1. Costs are hiring, $50 per new worker; layoff, $70 per worker laid off; inventory holding, $10 per unit-month; straight-time labor, $10 per hour; overtime, $15 per hour; backorder, $20 per unit a. Find the total cost of this plan?
Plan production for a four-month period: February through May. For February and March, you should produce to exact demand
forecast. For April and May, you should use overtime and Inventory with a stable workforce; stable means that the number of workers
needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime
labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are
100 workers on January 31. You are given the following demand forecast: February, 80,640; March, 67,200; April, 100,280; May,
40,280. Productivity is four units per worker hour, eight hours per day, 21 days per month. Assume zero Inventory on February 1. Costs
are: hiring, $50 per new worker, layoff, $70 per worker laid off, Inventory holding, $11 per unit-month; regular time labor, $12 per hour;
overtime, $18 per hour; backorder, $22 per unit.
Develop a production plan and calculate…
Chapter 14 Solutions
Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
Ch. 14.S - Prob. 1QCh. 14.S - Prob. 2QCh. 14.S - Prob. 3QCh. 14.S - Prob. 4QCh. 14.S - Prob. 5QCh. 14.S - Prob. 6QCh. 14.S - Prob. 7QCh. 14.S - Prob. 8QCh. 14.S - Prob. 1PCh. 14.S - The Tycron Company produces three electrical...
Ch. 14.S - Prob. 3PCh. 14.S - The Pinewood Cabinet and Furniture Company...Ch. 14.S - The Mystic Coffee Shop blends coffee on the...Ch. 14.S - Prob. 6PCh. 14.S - Prob. 7PCh. 14.S - Prob. 8PCh. 14.S - Prob. 9PCh. 14.S - Prob. 10PCh. 14.S - Prob. 11PCh. 14.S - Prob. 12PCh. 14.S - Prob. 13PCh. 14.S - Prob. 14PCh. 14.S - Prob. 15PCh. 14.S - Prob. 16PCh. 14.S - Prob. 17PCh. 14.S - Prob. 18PCh. 14.S - Prob. 19PCh. 14.S - Prob. 20PCh. 14.S - Prob. 22PCh. 14.S - Prob. 23PCh. 14.S - Prob. 24PCh. 14.S - Prob. 25PCh. 14.S - Prob. 27PCh. 14.S - Prob. 28PCh. 14.S - Prob. 1.1CPCh. 14.S - Prob. 1.2CPCh. 14.S - Prob. 1.3CPCh. 14.S - Prob. 1.4CPCh. 14.S - Prob. 1.5CPCh. 14.S - Prob. 1.6CPCh. 14.S - Prob. 1.7CPCh. 14.S - Prob. 1.8CPCh. 14.S - Prob. 1.9CPCh. 14.S - Prob. 2.1CPCh. 14 - Prob. 1.1ASCCh. 14 - Prob. 1.2ASCCh. 14 - Supply and Demand in the Spirits Industry A...Ch. 14 - Supply and Demand in the Spirits Industry A...Ch. 14 - Supply and Demand in the Spirits Industry A...Ch. 14 - Disneys Magic Numbers Sales and operations...Ch. 14 - Disneys Magic Numbers Sales and operations...Ch. 14 - Prob. 1QCh. 14 - List several alternatives for adjusting capacity....Ch. 14 - Prob. 3QCh. 14 - How do linear programming, the linear decision...Ch. 14 - Prob. 5QCh. 14 - What options are available for altering the...Ch. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Explain the process of collaborative planning. How...Ch. 14 - Prob. 11QCh. 14 - Prob. 12QCh. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Mamas Stuffin is a popular food item during the...Ch. 14 - Prob. 6PCh. 14 - Slopes Sleds (SS) makes skis, snowboards, and...Ch. 14 - Prob. 8PCh. 14 - Midlife Shoes, Inc, is a manufacturer of sensible...Ch. 14 - Design a production plan for Mamas Stuffin in...Ch. 14 - Design a production plan for FansForYou in Problem...Ch. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Prob. 18PCh. 14 - Prob. 19PCh. 14 - Prob. 20PCh. 14 - Prob. 21PCh. 14 - Prob. 22PCh. 14 - How many units are available-to-promise in period...Ch. 14 - Complete the available-to-promise table below.Ch. 14 - Complete the available-to-promise table below.Ch. 14 - Calculate the available-to-promise row in the...Ch. 14 - Complete the following table. How many Bs are...Ch. 14 - Managers at the Dew Drop Inn are concerned about...Ch. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Prob. 31PCh. 14 - Prob. 32PCh. 14 - The Forestry Club sells Christmas trees each year...Ch. 14 - Prob. 34PCh. 14 - Tariott Hotel rents rooms for 125 a night that...Ch. 14 - Prob. 36PCh. 14 - Prob. 1.1CPCh. 14 - Prob. 1.2CPCh. 14 - Prob. 1.3CP
Knowledge Booster
Similar questions
- Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 11,000; winter, 8,000; spring, 6,000; summer, 13,000. Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $100 for each temp; layoff $200 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. a. What is the total cost for this plan?arrow_forwardSoutheast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: demand forecast. Quarter Forecast 1 1,900 2 1,200 3 1,600 4 800 Costs/Other Data Previous quarter's output=1,200 cases Beginning inventory=0 cases Stockout cost of backorders=$160 per case Inventory holding cost=$40 per case at end of quarter Hiring employees=$35 per case Terminating employees=$80 per case Subcontracting cost=$65 per case Unit cost on regular time=$30 per case Overtime cost=$20 extra per case Capacity on regular time=1,900 cases per quarter John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: • Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. • Plan B: a level strategy. • Plan C: a level strategy that…arrow_forwardDevelop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall, you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition,you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stock-outs at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $100 for each temp; layoff, $200 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; over time, $8 per hour. Assume that productivity is 0.5 units per worker hour, with eight hours per day and 60 days per season. (Answer in Appendix D)arrow_forward
- Plan production for a four-month period (February through May). Given information: For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workersneeded for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 80,000; March, 64,000; April, 100,000; May, 40,000. Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1. Costs are hiring, $50 per new worker; layoff, $70 per worker laid off; inventory holding, $10 per unit-month; straight-time labor, $10 per hour; overtime, $15 per hour; backorder, $20 per unit.arrow_forwardOperation managemetnarrow_forwardThe S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $30 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 1,100 units per month and subcontract additional units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Month Month 1 July 2 August 3 September 4 October 5 November 6 December 1 2 3 September 4 October 5 November 6 December July August The total cost, excluding normal time labor costs, for Plan A = $ (Enter your response as a whole number.) Demand 1300 1150 1100 1600 1900 1200 Production 1,100 1,100 1,100 1,100 1,100 1,100 The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements…arrow_forward
- The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 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 1,000 units per month and subcontract additional units at a $60 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Inventory Subcontract Month Demand Production (Units) 1 July 1000 1,000 2 August 1200 1,000 3 September 1400 1,000 4 October 1800 1,000 November 1800 1,000 6. December 1600 1,000 LOarrow_forwardThe S&OP team at Kansas Furniture, has received estimates of demand requirements 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 $70 per unit premium cost. Subcontracting capacity is limited to 500 units per month. (Enter all responses as whole numbers). The total cost, excluding normal time labor costs, for Plan A = $ Month Ending Subcontract Demand Production Inventory (Units) 1 July 1200 1,200 0 0 2 August 1300 1,200 0 100 3 September 1200 1,200 0 0 4 October 1700 1,200 0 500 5 November 1650 1,200 0 450 6 December 1400 1,200 0 200 (Enter your response as a whole number.)arrow_forwardThe S&OP team at Kansas Furniture, has received estimates of demand requirements 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 $70 per unit premium cost. Subcontracting capacity is limited to 500 units per month. (Enter all responses as whole numbers). Month Demand 1 July 1200 Ending Subcontract Production Inventory (Units) 1,200 2 August 1300 1,200 0 3 September 1200 1,200 0 4 October 1700 1,200 0 5 November 1650 1,200 0 6 December 1400 1,200 0arrow_forward
- Please help me answer this question. Please provide solution/computation.arrow_forwardDevelop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. Use the example in the chapter as a guide (Plan 1).The monthly forecasts for Product X for January, February, and March are 1,000, 1,500, and 1,200, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days on January, 19 in February, and 21 in March. The beginning inventory is 500 units.Manufacturing cost is $200 per unit, storage cost is $3 per unit per month, standard pay rate is $6 per hour, overtime rate is $9 per hour, cost of stock out is $10 per unit per month, marginal cost of subcontracting is $10 per unit, hiring and training cost is $200 per worker, layoff cost is $300 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 50 workers and that they work 8 hours per day.arrow_forwardThe S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 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. (Enter all responses as whole numbers). Ending Subcontract Month Demand Production Inventory (Units) 1 July 1200 1,200 2 August 1300 1,200 3 September 1200 1,200 4 October 1700 1,200 November 1650 1,200 December 1400 1,200 The total cost, excluding normal time labor costs, for Plan A = $ (Enter your response as a whole number.)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.