Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 6.S, Problem 1.1VC
Summary Introduction
Case summary:
The case deals about Company F that produces quality controlled potato chips. They have the control over every process to produce potato chips from farming of potatoes to distribution of the final product to the retail stores. It would be inspected at least 11 times during the process. In addition to that, firm uses proprietary vision system to find the defective potato chips. Standards quoted by Country A institute of baking is strictly followed by the firm to produce quality products.
Daily statistical process control score and total customer complaints are the key metrics of Company F. The upper control limit of the potato chips is 2.22% and lower control limit is 1.98%.
To determine: The report that can be provided to Person A regarding upper and lower control limit.
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The results of your four plans will provide an indicative EOQ value. State this value and discuss in a precise manner, why it is not the exact, true value.
Additional calculations in the form of plans E, F etc. may also assist your explanation of the EOQ and can be included
i). Complete the table assuming a Level production plan.
ii) Comment on your results and explain whether at this stage, you consider a Level plan is a suitable approach for this particular business. Your comment should include reference to a calculated ‘fill rate’.
In the following sawtooth inventory profile diagram, two inventory plans with different order quantities (Q) and different frequencies of delivery are shown; order quantity for Plan A = 200 units and Plan B = 50 units.
i). Total demand (D) is 350 units, the holding cost per unit (Ch) is equal to (£0.8) and the ordering cost per order (Co) is (£12.5). Calculate the total costs for each plan and state which one is more preferable along with the reason why.
ii). There is a stark difference in the composition of the total costs of Plans A and B. Explain this difference and why it occurs. Use the breakdown of costs for each plan to help illustrate your answer.
Chapter 6 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Ch. 6.S - Prob. 1DQCh. 6.S - Define in statistical control.Ch. 6.S - Prob. 3DQCh. 6.S - Prob. 4DQCh. 6.S - Prob. 5DQCh. 6.S - Prob. 6DQCh. 6.S - Prob. 7DQCh. 6.S - Prob. 8DQCh. 6.S - Prob. 9DQCh. 6.S - Prob. 10DQ
Ch. 6.S - Prob. 11DQCh. 6.S - Prob. 12DQCh. 6.S - Prob. 13DQCh. 6.S - Prob. 14DQCh. 6.S - Prob. 15DQCh. 6.S - Prob. 16DQCh. 6.S - Prob. 17DQCh. 6.S - Prob. 18DQCh. 6.S - Prob. 19DQCh. 6.S - Prob. 1PCh. 6.S - Prob. 2PCh. 6.S - Prob. 3PCh. 6.S - Prob. 4PCh. 6.S - Prob. 5PCh. 6.S - Prob. 6PCh. 6.S - Prob. 7PCh. 6.S - Prob. 8PCh. 6.S - Prob. 9PCh. 6.S - Prob. 10PCh. 6.S - Prob. 11PCh. 6.S - Prob. 12PCh. 6.S - Prob. 13PCh. 6.S - Prob. 14PCh. 6.S - Prob. 15PCh. 6.S - Prob. 16PCh. 6.S - Prob. 17PCh. 6.S - Prob. 18PCh. 6.S - Prob. 19PCh. 6.S - Prob. 20PCh. 6.S - Prob. 21PCh. 6.S - Prob. 22PCh. 6.S - Prob. 23PCh. 6.S - Prob. 24PCh. 6.S - Prob. 25PCh. 6.S - Prob. 26PCh. 6.S - Prob. 27PCh. 6.S - Prob. 40PCh. 6.S - Prob. 41PCh. 6.S - Prob. 42PCh. 6.S - Prob. 43PCh. 6.S - Prob. 44PCh. 6.S - Prob. 45PCh. 6.S - Prob. 51PCh. 6.S - Prob. 52PCh. 6.S - Prob. 53PCh. 6.S - Prob. 54PCh. 6.S - Prob. 55PCh. 6.S - Prob. 1CSCh. 6.S - Prob. 2CSCh. 6.S - Prob. 1.1VCCh. 6.S - Prob. 1.2VCCh. 6.S - Prob. 1.3VCCh. 6.S - Prob. 2.1VCCh. 6.S - Select two potential problems-one in the Darden...Ch. 6.S - Prob. 2.3VCCh. 6.S - Prob. 2.4VCCh. 6 - Prob. 1EDCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Prob. 15DQCh. 6 - Prob. 16DQCh. 6 - Prob. 17DQCh. 6 - Prob. 18DQCh. 6 - An avant-garde clothing manufacturer runs a series...Ch. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Kathleen McFaddens restaurant in Boston has...Ch. 6 - Prob. 6PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Prob. 9PCh. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 1CSCh. 6 - Prob. 2CSCh. 6 - Prob. 3CSCh. 6 - Prob. 1.1VCCh. 6 - Prob. 1.2VCCh. 6 - Prob. 1.3VCCh. 6 - Prob. 1.4VCCh. 6 - Prob. 2.1VCCh. 6 - Prob. 2.2VCCh. 6 - Prob. 2.3VCCh. 6 - Prob. 2.4VCCh. 6 - Prob. 3.1VCCh. 6 - Prob. 3.2VCCh. 6 - Prob. 3.3VCCh. 6 - Prob. 3.4VCCh. 6 - Prob. 3.5VC
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