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)
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Textbook Question
Chapter 14, Problem 7P
Slopes & Sleds (S&S) makes skis, snowboards, and high-end sledding equipment. As shown below, the demand for its products is highly seasonal. The company employs 10 workers who can each produce 200 units of various equipment per month. The cost of regular production is $8 per unit, overtime $12, and subcontracting $16. Overtime is limited to regular production each period. Subcontracting is unlimited. Hiring and firing costs are $500 per worker. Inventory holding costs are $2 per unit per month. Given the estimates of demand below, create an aggregate production plan for Slopes & Sleds and calculate the cost of the plan using:
- a. the current workforce level (supplemented with overtime and subcontracting as needed), b, chase demand.
- b. linear programming with Solver.
- c. subcontracting. The global sourcing department of Slopes & Sleds has located a company in China that can make S&S products for $9 a unit. Revise the production plan using Solver. How much money can be saved by outsourcing to China?
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Slopes & Sleds (S&S) makes skis, snowboards, and high- end sledding equipment. As shown below, the demand for its products is highly seasonal. The company employs 10 workers who can each produce 200 units of various equipment per month. The cost of regular production is $8 per unit, overtime $12, and subcontracting $16. Overtime is limited to regular production each period. Subcontracting is unlimited. Hiring and firing costs are $500 per worker. In- ventory holding costs are $2 per unit per month. Given the estimates of demand below, create an aggregate production plan for Slopes & Sleds using: a. the current workforce level (supplemented with overtime and subcontracting as needed), b. chase demand.
Month DemandJanuary 6400February 7000March 1500April 500May 600June 1400July 1600August 2000September 1400October 1500November 5200December 6900
Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows:
MONTH
DEMAND (UNITS)
January
4,150
February
4,250
March
3,950
April
4,350
May
4,950
June
4,650
July
5,250
August
4,850
September
5,350
October
5,650
November
6,250
December
5,950
a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this…
Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, washing, slicing, preserving, and finally packaging the prepared lettuce. Together, with help from vendors, they think they can adequately estimate demand, fixed costs, revenues, and variable cost per bag of lettuce. They think a largely manual process will have monthly fixed costs of
$40,000
and variable costs of
$2.00
per bag. A more mechanized process will have fixed costs of
$72,000
per month with variable costs of
$1.25
per bag. They expect to sell the shredded lettuce for
$3.00
per bag.
a) The break-even quantity in units for the manual process =
enter your response here
bags (round your response to the nearest whole number).
b) The revenue…
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
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