OPERATION MANAGEMENT
OPERATION MANAGEMENT
2nd Edition
ISBN: 9781260242423
Author: CACHON
Publisher: MCG
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Chapter 4, Problem 4PA

a)

Summary Introduction

To determine: The labor content.

b)

Summary Introduction

To determine: The average labor utilization.

c)

Summary Introduction

To determine: The cost of direct labor per customer.

d)

Summary Introduction

To determine: The cost of direct labor per customer.

e)

Summary Introduction

To determine: The cost of direct labor per customer with new reassignment.

f)

Summary Introduction

To determine: The capacity of the process in customers per hour.

g)

Summary Introduction

To determine: The capacity of the process in customers per hour.

h)

Summary Introduction

To determine: The capacity of the process in customers per hour.

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Sam's Pet Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: > Demand 70 bags/week > Order cost $58.00/order > Annual holding cost 30 percent of cost > Desired cycle-service level = 80 percent >Lead time 4 weeks (24 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 70 bags is incorrect and actual demand averages only 45 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)
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