OPERATIONS MANAGEMENT LOOSELEAF W/ CONN
OPERATIONS MANAGEMENT LOOSELEAF W/ CONN
14th Edition
ISBN: 9781264343898
Author: Stevenson
Publisher: MCG
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Chapter 9, Problem 2.1CQ
Summary Introduction

Case summary:

The case deals about the regional supermarket chains. Person K, who is a manager of one of the store, was distributed by numerous numbers of complaints from customers at the stores. The complaints registered on each date are demonstrated in the below check sheets:

OPERATIONS MANAGEMENT LOOSELEAF W/ CONN, Chapter 9, Problem 2.1CQ

To determine: The recommendations to be made to the manager by Person X.

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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
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 $100 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Month Demand Production Inventory Subcontract (Units) 1 July 1300 1,100 0 2 August 1150 1,100 0 3 September 1100 1,100 0 4 October 1600 1,100 0 5 November 1900 1,100 0 6 December 1200 1,100 0
Please help me expand upon my research even more in detail please. Need help added more to mine from the photos please. Not sure what more I can add.
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