EBK OPERATIONS MANAGEMENT
EBK OPERATIONS MANAGEMENT
11th Edition
ISBN: 8220103630726
Author: RENDER
Publisher: PEARSON
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Chapter 17, Problem 4P
Summary Introduction

To determine: The expected daily breakdown cost.

Introduction: Reliability is the probability that a product can perform over a specific period. It is the consistency of the product to perform in the same way for a particular period of time.

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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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