Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 8, Problem 4VC
Summary Introduction
Interpretation: The benefits of leveling aggregate demand by having a portfolio of products that creates a 365-day demand are to be identified.
Concept Introduction: Demand leveling is one of the steps in the Toyota Production Systems towards a leaner and leaner management. This consists of reducing the peaks and depressions of demand to create a uniform and smooth flow of the production process.
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What are the benefits of leveling aggregate demand by having a portfo-lio of products that create 365-day demand?
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Chapter 8 Solutions
Operations Management: Processes and Supply Chains (11th Edition)
Ch. 8 - Figure 8.9 shows summer air visibility...Ch. 8 - Kay and Michael Passe publish What‘s...Ch. 8 - Demand for oil changes at Garcia’s Garage has...Ch. 8 - Prob. 2PCh. 8 - Ohio Swiss Milk Products manufactures and...Ch. 8 - A manufacturing firm has developed a skills test,...Ch. 8 - The materials handling manager of a manufacturing...Ch. 8 - Marianne Kramer, the owner of Handy Man Rentals,...Ch. 8 - Sales for the past 12 months at Computer Success...Ch. 8 - Bradley’s Copiers sells and repairs photocopy...
Ch. 8 - Consider the sales data for Computer Success given...Ch. 8 - A convenience store recently started to carry a...Ch. 8 - Community Federal Bank in Dothan, Alabama,...Ch. 8 - The number of heart surgeries performed at...Ch. 8 - The following data are for calculator sales in...Ch. 8 - Prob. 14PCh. 8 - Forrest and Dan make boxes of chocolates for which...Ch. 8 - The manager of Alaina’s Garden Center must make...Ch. 8 - The manager of a utility company in the Texas...Ch. 8 - Franklin Tooling, Inc., manufactures specialty...Ch. 8 - Create an Excel spreadsheet on your own that can...Ch. 8 - Prob. 20PCh. 8 - Using the data in Problem 20 and the Time-Series...Ch. 8 - Prob. 22PCh. 8 - Cannister, Inc., specializes in the manufacture of...Ch. 8 - The Midwest Computer Company serves a large number...Ch. 8 - A certain food item at P=0.20 (with a combination...Ch. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - A manufacturing firm seeks to develop a better...Ch. 8 - How much does the forecasting process at Deckers...Ch. 8 - Prob. 2VCCh. 8 - What factors make forecasting at Deckers...Ch. 8 - Prob. 4VCCh. 8 - Prob. 5VCCh. 8 - Comment on the forecasting system being used by...Ch. 8 - Develop your own forecast for bow rakes for each...
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- Explain in what ways do independent demand inventories differ from dependent demand inventories ?arrow_forwardWith the aid of appropriate load shapes ,discuss mechanisms that facilitate demand side management initiatives.arrow_forward2. Demand for Quiggly Pops (QP) follows an up and down pattern over the four quarters of a year, with peaks in the spring and winter months when special promotions are held. Production is handled by a highly-skilled local workforce during a regular 40-hour week (i.e., overtime and subcontracting are not used). The company likes to zero out its inventory at the end of a year so that it can start fresh each January. QP currently uses a level production strategy, but would like to evaluate other options. Create a production plan and calculate the cost of the plan for each strategy listed below. Which plan would you recommend to QP? (a) Level production (b) Chase demand Quarter Demand Forecast 1 70,000 2 100,000 3 50,000 4 150,000 Beginning workforce 40 workers Production rate per worker 1250 units/quarter Regular production cost $10 per unit Hiring cost $500 per worker Firing cost $500 per worker Holding cost $1 per unit per quarterarrow_forward
- Kaizer Plastics produces a variety of plastic items forpackaging and distribution. One item, container #145, has hada low contribution to profi ts. Last year, 20,000 units of container#145 were produced and sold. Th e selling price of the containerwas $20 per unit, with a variable cost of $18 per unit and a fi xedcost of $70,000 per year.(a) What is the break-even quantity for this product? Useboth graphic and algebraic methods to get your answer. (b) Th e company is currently considering ways to improveprofi tability by either stimulating sales volumes orreducing variable costs. Management believes thatsales can be increased by 35 percent of their currentlevel or that variable cost can be reduced to 90 percentof their current level. Assuming all other costs equal,identify which alternative would lead to a higher profi tcontribution.arrow_forwardPlease help to solvearrow_forwardJoint Cost Allocation-Net Realizable Value Method Nature's Garden Inc. produces wood chips, wood pulp, and mulch. These products are produced through harvesting trees and sending the logs through a wood chipper machine. One batch of logs produces 20,400 cubic yards of wood chips, 10,400 cubic yards of mulch, and 9,200 cubic yards of wood pulp. The joint production process costs à total of $34,000 per batch. After the split-off point, wood chips are immediately sold for $25 per cubic yard while wood pulp and mulch are processed further. The market value of the wood pulp and mulch at the split-off point is estimated to be $22 and $25 per cubic yard, respectively. The additional production process of the wood pulp costs $5 per cubic yard, after which it is sold for $30 per cubic yard. The additional production process of the mulch costs $4 per cubic yard, after which it is sold for $27 per cubic yard. Allocate the joint costs of production to each product using the net realizable value…arrow_forward
- Explain the economic order quantity (EOQ) and its impact on cost of operations.arrow_forwardEconomic order quantity can be useful only if some factors are taken into consideration. Explain what this could bearrow_forwardWhich of the four costs relevant to aggregate production planning is the most difficult to accurately measure?arrow_forward
- Explain answer for all parts of the questionarrow_forwardEastman Publishing company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be P160,000. Variable production and materials costs are estimated to be P6 per book. The publisher plans to sell the text to college and university bookstores for P46 each. A. What is the break-even point? B. What profit or loss can be anticipated with a demand of 3,800 copies? C. With a demand of 3,800 copies, what is the minimum price per copy that the publisher must change to break-even? D. If the publisher believes that the price per copy coud be increase to P50.95 and not affected the anticipated demand of 3,800 copies, what action would you recommend? What profit or loss can be anticipated?arrow_forwardDiscuss the concept of demand variability and how it impacts the effectiveness of the Wilson approach. What strategies can be employed to mitigate the effects of demand variability in this approach?arrow_forward
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