Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 3, Problem 33AP

a

Summary Introduction

To determine:

Minimum constant workforce and cost of Paris Paint plan

Introduction:

Linear program is a mathematical technique in which some variable maximized or minimized and some are kept constraint.

b

Summary Introduction

To determine:

Cost of new plan

Introduction:

Linear program is a mathematical technique in which some variable maximized or minimized and some are kept constraint.

c

Summary Introduction

To determine:

Linear program when stock-outs are not allowed.

Introduction:

Linear program is a mathematical technique in which some variable maximized or minimized and some are kept constraint.

d

Summary Introduction

To determine:

Cost of resulting plan

Introduction:

Linear program is a mathematical technique in which some variable maximized or minimized and some are kept constraint.

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You are responsible of developing the six-month aggregate production plan at Sodas Galore, a manufacturer of soft drinks. Your company makes three types of sodas: regular, diet and super-caffeinated. All three types are made using the same production process, and the switching costs can be ignored as they are so minimal. The S&OP team case created the following forecast of demand for the next six months. In addition to the sales forecast, the company has also developed planning values that are also shown in the next table. Month Sales Forecast (cases) Softdrinks Planning Values January 24,000 Current workforce 8 workers 32,000 Average monthly output per worker 32,000 Inventory holding cost 46,000 Regular wage rate February 4,000 cases per month $.30 per case per month $20.00 per hour March April May 60,000 Regular production hours/month 44,000 Overtime wage rate 160 hours June $30.00 per hour 240,000 Hiring cost $1,000 per worker $1.15 per case Total Subcontracting cost Firing/layoff…
The following is the forecasted demand for Olives Company over the next few months. Month Forecasted Demand Jan 9025 Feb 9000 Mar 9450 Apr 9830 May 9630 Jun 10100 Olives Company plans on using a constant production of 9,250 units a month at a $958 per unit cost. The company has an inventory balance of 300 units at the beginning of January. Stockout cost due to loss sale is estimated to be $177 per unit. Monthly inventory holding cost are $12 per unit. Olives Company can produce an additional 10% of its' regular production In overtime at the cost of $80 more per unit. Assume that Olives Company will avoid stockout if possible Under this plan how much will will Olives Company spend on inventory holding cost (answer to the nearest whole number)
The following is the forecasted demand for Olives Company over the next few months. Month Forecasted Demand Jan 9025 Feb 9000 Mar 9450 Apr 9830 May 9630 Jun 10100 Olives Company is considering using a pure chase strategy. The company has an inventory balance of 300 units and a work force capable of making 9000 units at the beginning of January. Stockout cost due to loss sale is estimated to be $800 per unit. Monthly inventory holding cost are $20 per unit. Olives estimates that adding capacity will cost $75 per unit and firing capacity will cost $50 per unit. Under this plan which of the following is true. O Olives will have inventory cost at the end of January of $5500 O Olives will spend $500 on hiring at the beginning of January O Olives will spend $13,750 on firing at the beginning of January Olives will need to use overtime in April, May and June O Olives holding cost will be be a total of $11000 for the entire plan O None of the other answers are correct
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