MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
11th Edition
ISBN: 9780133885583
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 15, Problem 10P
Summary Introduction
Interpretation: On the condition that there will be 10,000 phones shipped each month, the difference between monthly shipping charges each month is to be calculated.
Concept Introduction: The Company has decided to incorporate the packaging of its phones in a much smaller and recyclable package. Further, the company has also decided to stop its shipping practices along with a user manual because it decided to make the manual available online.
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PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below:
Supply/Demand Info
Beginning
Jan
Feb
Mar
Apr
May
Jun
Forecast (demand)
53,800
53,400
51,000
63,800
49,200
59,000
Regular production
Overtime production
Subcontract production
Ending inventory
4,000
Hired employees
Fired employees
Total employees
190
Cost variables are as follows:
Cost Variables
Labor cost/hour
$16
Overtime cost/unit
$39
Subcontracting cost/unit
$35
Holding cost/unit/month
$14
Hiring cost/employee
$3,100
Firing cost/employee
$5,500
Here is some additional relevant (capacity) information:
Capacity Information
Total labor hours/SSD
4
Regular production units/employee/month
200…
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Chapter 15 Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
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