OPERATIONS MANAGEMENT CUSTOM ACCESS
11th Edition
ISBN: 9780135622438
Author: KRAJEWSKI
Publisher: PEARSON EDUCATION (COLLEGE)
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 5, Problem 11P
Cooper River Glass Works (RGW) produces four different models of desk lamps as shown in Figure 5.15. The operations manager knows that total monthly demand exceeds the capacity available for production. Thus, she is interested in determining the product mix which will maximize profits. Each model’s price, routing, processing times, and material cost are provided in Figure 5.15. Demand next month is estimated to be 200 units of model Alpha, 250 units of model Bravo, 150 units of model Charlie, and 225 units of model Delta. CRGW operates only one 8-hour shift per day and is
- Which station is the bottleneck?
- Using the traditional method, which bases decisions solely on a product’s contribution to profits and overhead, what is the optimal product mix and what is the overall profitability?
- Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming four quarters. Demand in each of the four quarters and production, overtime, and subcontracting capacities are
reported in the table below, in addition to the feasible production plan. The relevant costs are:
• Regular time production cost is $10/unit.
Overtime production cost is $14/unit.
Subcontracting cost is $18/unit
Inventory is held at a cost of $1/unit/quarter.
• Units may be backordered at a cost of $4/unit/quarter.
Production
Resource
Regular Time Q1
Overtime Q1
Subcontract Q1
Regular Time Q2
Overtime Q2
Subcontract Q2
Regular Time Q3
Overtime Q3
Subcontract Q3
Demand in Quarter
Demand in Quarter
Q2
0
20
0
550
Q1
550
230
0
0
0
0
40
40
0
860
250
470
0
40
0
1330
What is the inventory cost for the year?
What is the backorder cost for the year?
What is the total cost for the year?
Q3
0
0
0
0
0
30
510
160
0
700
What is the total overtime production cost for the year?
Capacity
550
250
500…
Eastman Publishing Company is considering publishing an electronic textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and Web site construction is estimated to be $160,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell access to the book for $46 each.
a. What is the break even point?
b. what profit or loss can be anticipated with a demand for 3800 copies
c. Wiht a 3800 copy demand, proced at $50.95 , what profit or loss can be expected?
In the context of an Accident and Emergency Department, high demand variation can be addressed by having:
Select one alternative:
Yield Management.
Over staffing and preferential access.
Marketing.
Standby capacity and flexible staffing.
Demand management.
Chapter 5 Solutions
OPERATIONS MANAGEMENT CUSTOM ACCESS
Ch. 5 - Take a process that you encounter on a daily...Ch. 5 - Prob. 2DQCh. 5 - How could the efficiency of the redesigned process...Ch. 5 - Bill’s Barbershop has two barbers available to...Ch. 5 - Melissa’s Photo Studio offers both individual...Ch. 5 - Figure 5.11 details the process flow for two types...Ch. 5 - Prob. 4PCh. 5 - Super Fun Industries manufactures four top-selling...Ch. 5 - Prob. 6PCh. 5 - Yost-Perry Industries (YPI) manufactures a mix of...
Ch. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - A.J.’s Wildlife Emporium manufactures two unique...Ch. 5 - Cooper River Glass Works (RGW) produces four...Ch. 5 - Quick Stop Pharmacy is a small family-owned,...Ch. 5 - Use the longest work element rule to balance the...Ch. 5 - Johnson Cogs wants to set up a line to serve 60...Ch. 5 - Refer back to Problem 16. Suppose that in addition...Ch. 5 - To meet holiday demand, Penny’s Pie Shop...Ch. 5 - A paced assembly line has been devised to...Ch. 5 - Prob. 20PCh. 5 - Greg Davis, a business major at the University of...Ch. 5 - Prob. 1VCCh. 5 - Which boarding scenario among the different ones...Ch. 5 - How should Southwest evaluate the gate boarding...Ch. 5 - How will Southwest know that the bottleneck had...
Additional Business Textbook Solutions
Find more solutions based on key concepts
The flowchart for the process at the local car wash. Introduction: Flowchart: A flowchart is a visualrepresenta...
Principles Of Operations Management
What is precedent, and how does it affect common law?
Business in Action (8th Edition)
2. Identify four people who have contributed to the theory and techniques of operations management.
Operations Management: Sustainability and Supply Chain Management (12th Edition)
There is a huge demand in the United States and elsewhere for affordable women’s clothing. Low-cost clothing re...
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
There is a huge demand in the United States and elsewhere for affordable women’s clothing. Low-cost clothing re...
Operations Management
2. In what circumstances might a market-pull approach or a technology-push approach to new-product design be th...
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?arrow_forwardScenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forwardSoutheast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: demand forecast. Quarter Forecast 1 1,900 2 1,200 3 1,600 4 800 Costs/Other Data Previous quarter's output=1,200 cases Beginning inventory=0 cases Stockout cost of backorders=$160 per case Inventory holding cost=$40 per case at end of quarter Hiring employees=$35 per case Terminating employees=$80 per case Subcontracting cost=$65 per case Unit cost on regular time=$30 per case Overtime cost=$20 extra per case Capacity on regular time=1,900 cases per quarter John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: • Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. • Plan B: a level strategy. • Plan C: a level strategy that…arrow_forward
- sniparrow_forwardCapacity planning requires a demand forecast for an extended period of time into the future. What concerns would you have regarding an extended forecast as a capacity planner?arrow_forwardNozone, Inc., a manufacturer of Freon recovery units (for automotive air conditioner maintenance), experiences a strongly seasonal demand pattern, driven by the summer air conditioning season. This year Nozone has put together a six-month production plan, where the monthly demands D, for recovery units are given in the table below. Each recovery unit is manufactured from one chassis assembly plus a variety of other parts. The chassis assemblies are produced in the machining center. Since there is a single chassis assembly per recovery unit, the demands in the table below also represent demands for chassis assemblies. The unit cost, fixed setup cost and monthly holding cost for chassis assemblies are also given in this table. The fixed setup cost is the firm's estimate of the cost to changeover the machining center to produce chassis assemblies, including labor and materials cost and the cost of disruption of other product lines. t D₁ C₁ A₁ h₂ 1 1,000 50 2,000 1 2 1,200 50 2,000 1 3 500…arrow_forward
- Handerson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 8.5 kilos 0.4 hours 0.4 hours Standard Price or The company reported the following results concerning this product in August. Actual output Raw materials used in production Purchases of raw materials Rate $ 6.00 per kilo $ 20.00 per hour $ 6.00 per hour 3,200 units 29,030 kilos 31,600 kilos Actual direct labor-hours 1,160 hours Actual cost of raw materials purchases $ 195,920 $ 22,736 Actual variable overhead cost $ 7,540 Actual direct labor cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for August is: Multiple Choice $5,440 Farrow_forwardCharles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 5555% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,800 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $800 and a per loaf ingredient cost of $0.35 Current multifactor productivity for 640 work hours per month =0.27loaves/dollar (round your response to three decimal places).arrow_forwardThe current data for five trees that will be analyzed in the exercise are shown in the following table Expected Yearly Demand Quantity For Sale In-Field Quantity 440 74 Trees Christmas Palm Washingtonia Gumbo Limbo Yellow Poinciana Weeping Podo 81 165 159 49 185 Trees Christmas Palm Washingtonia Std Dev 31 155 35 32 68 Gumbo Limbo Yellow Poinciana The "expected yearly demand" is an estimate of the demand over the next year for the tree. The "std dev" is the standard deviation, a measure of the error, that corresponds to the forecast. For-sale and in-field quantities are given, and finally the total number of trees planted on the farm. The demand forecast and quantities are updated on an ongoing basis as trees are sold and planted on the farm. 374 70 42 290 Your first task is to evaluate the inventory "position" of each tree. The farm does not keep any backorder information, so the only data you have is "for-sale" and "in-field" quantities. Think about "for-sale" as on-hand trees, and…arrow_forward
- Please solve all part and do not give solution in image format thankuarrow_forwardABC Inn has 2 departments: rooms and F&B. the rooms department has a CMR of 0.6 and the F&B department has a CMR of 0.4 the rooms department take in 70% of total revenue and the F&B department takes in 30% of total revenue. If the combined total monthly fixed costs for the entire hotel are equal to $100,00. What is the break-even level of sales?arrow_forwardSmart Manufacturing Company (SMC) manufactures a variety of products other than the drum components for printers. Their high selling mobile juicer cup JG-142 has the following expected demand sales figures (in units) over the coming six months: Month 2 3 4 5 Expected Demand (units) 17680 23040 21120 16640 21760 The following planning parameters apply: Current number of workers Output rate per worker Number of regular time hours Number of working days Regular time labour cost Overtime labour cost Planning Parameters 26 4 units/hour 8 hours/day 20 days/month Maximum overtime hours allowed Hiring cost (including training) Layoff cost Inventory carrying cost Backorder cost Opening inventory Planned ending inventory (end of month 6) Material Cost Subcontracting Cost with material Maximum subcontracting allowed $14.00 /hour $21.00 /hour 6 18300 20% of regular worker-hours/month $950 /worker $1780 /worker $1.75 /unit/month Total 118540 $7.00/unit backordered 400 units 900 units $15 /unit $35…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational Publishing
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY