Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 5, Problem 9P

a)

Summary Introduction

To determine: To prepare bill of materials for a pair of eyeglasses and its case.

Introduction: Bill of materials (BOM) is a list which carries the products required to produce the end product. It contains information about the required raw materials, sub-assemblies, intermediate parts, sub-parts, other components necessary to produce the end product.

b)

Summary Introduction

To determine: To prepare bill of materials for a sandwich in Company S.

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Question 4 b) Company ABC wishes to evaluate whether to produce a component internally or purchase from a vendor. The firm has the following options: Internal Production Process 1 Process 2 Purchase from Vendor Vendor 1 Vendor 2 Vendor 3 Variable cost of $17 per unit; annual fixed cost of $200,000 Variable cost of $14 per unit; annual fixed cost of $240,000 Offers a price of $20 per unit for any volume up to 30,000 units Offers a price of $22 per unit for 1,000 units or less, and $18 per unit for large quantities Offers a price of $21 per unit for the first 1,000 units and $19 per unit for additional units If the annual demand is 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best?
Question 2 What is the throughput time of a typical pallet?  a. 222 minutes b. 90 minutes c. 10 minutes   d. 210 minutes   e. Impossible to determine
Question 4 If 10 pallets are received each 8-hour day, what is the average number of pallets in the system on any given day a. 10 pallets b. 4.713 pallets c. 4.375 pallets d. 1.25 pallets e. Impossible to determine

Chapter 5 Solutions

Operations Management: Sustainability and Supply Chain Management (12th Edition)

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