OPERATIONS MANAGEMENT
OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781260961393
Author: Stevenson
Publisher: MCG
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Chapter 7.S, Problem 11P
Summary Introduction

To develop: Time estimates for 2, 3, 4 and 5 units.

Introduction: Learning curve is referred as the cost curve, experience curve, efficiency curve or productivity curve. The leaving curve gives information about the cost, efficiency, productivity and performance of an organization.

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Regular Period Time Overtime Supply Available puewag Subcontract Forecast 40 15 15 40 2 35 40 28 15 15 20 15 22 65 60 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit 20 units $100 $150 $200 Carrying cost per unit per month 84
assume that the initial inventory has no holding cost in the first period, and back orders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method. The total cost is? (enter as whole number)
The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $35 per unit produced. The cost of layoffs is $60 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1300 in August requires a layoff (and related costs) of 0 units in August). Hire Month 1 July Demand 1300 Production (Units) Layoff (Units) Ending Inventory Stockouts (Units) 2 August 1150 3 September 1100 4 October 1600 5 November 1900 6 December 1900

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