Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
11th Edition
ISBN: 9780134111056
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Question
Chapter 5, Problem 9P
Summary Introduction
Interpretation: The product mix for improving the profitability and change in profit needs to be determined.
Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.
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As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 2 springs, and 4 clamps. The base is assembled from 2 clamps and 1 housing. Each clamp has 1handle and 1 casting. Each housing has 2 bearings and 2 shafts. There is no inventory on hand.
c) Compute the net quantities needed if there are 25 of the base and 100 of the clamp in stock.
Base:
units (enter your response as a whole number).
Spring:
units
Clamp:
units
Housing:
units
Handle
units
Casting:
units
Bearing:
units
Shaft:
units
As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 2 springs, and 4 clamps. The base is assembled from 1 clamp and\ 1 housing. Each clamp has 1 handle and 2 castings.Each housing has 1 bearing and 2 shafts.There is no inventory on hand.
C) Compute the net quantities needed if there are 25 of the base and 75 of the clamp in stock.
(Product structure picture attached)
Base = (?) units
Spring = (?) units
Clamp = (?) units
Housing = (?) units
Handle = (?) units
Casting = (?) units
Bearing = (?) units
Shaft = (?) units
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…
Chapter 5 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
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