Principles Of Operations Management
Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
bartleby

Concept explainers

Question
Book Icon
Chapter 9, Problem 2P

a)

Summary Introduction

To determine: The cost of plan A layout.

Introduction: Process layout refers to the plan or graphical representation about the design of the floor of a plant. It helps the firm to improve the efficiency of the design and it would help to improve the location of the departments.

a)

Expert Solution
Check Mark

Answer to Problem 2P

The cost of plan A layout is $23,400.

Explanation of Solution

Given information:

Given the distances in feet from one department to the other as follows

Principles Of Operations Management, Chapter 9, Problem 2P , additional homework tip  1

And the work pieces moved from one department to the other as follows

Principles Of Operations Management, Chapter 9, Problem 2P , additional homework tip  2

Calculation of cost of plan A layout:

Calculate the total weekly material handling cost, MH cost using the formula

MHcost=i=1nj=1nxij×Cij (1)

where   n= total number of departments

i,j = individual departments

xij= number of loads moved from department i to department j

Cij= cost to move an item from department i to department j

Substitute into the equation (1), the various values to obtain

MtoD=20×600×$0.5=$6,000MtoF=12×1,800×$0.5=$10,800MtoP=8×200×$0.5=$800

DtoF=400×6×$0.5=$1,200DtoP=200×10×$0.5=$1,000FtoP=4×1,800×$0.5=$3,600

Add all the costs to obtain the total material handling costs $23,400_ .

Hence, the cost of plan A layout is $23,400.

b)

Summary Introduction

To determine: The cost of the layout.

b)

Expert Solution
Check Mark

Answer to Problem 2P

The cost of the layout is $20,600.

Explanation of Solution

Given information:

Given the distances in feet from one department to the other as follows

Principles Of Operations Management, Chapter 9, Problem 2P , additional homework tip  3

And the work pieces moved from one department to the other as follows

Principles Of Operations Management, Chapter 9, Problem 2P , additional homework tip  4

Calculation of cost of the layout:

After switching departments F and P, calculate the total material handling cost, MH cost using the formula

Calculate the total weekly material handling cost, MH cost using the formula

MHcost=i=1nj=1nxij×Cij (2)

where   n= total number of departments

i,j = individual departments

xij= number of loads moved from department i to department j

Cij= cost to move an item from department i to department j

Substitute in equation (2), the various values to obtain

MtoD=20×600×$0.5=$6,000MtoF=8×1,800×$0.5=$7,200MtoP=12×200×$0.5=$1,200

DtoF=400×10×$0.5=$2,000DtoP=200×6×$0.5=$600FtoP=4×1,800×$0.5=$3,600

Add all the costs to obtain the total material handling costs $20,600_

Hence, the cost of the layout is $20,600.

c)

Summary Introduction

To determine: The cost of the layout.

c)

Expert Solution
Check Mark

Answer to Problem 2P

The cost of the layout is $22,000.

Explanation of Solution

Given information:

Given the distances in feet from one department to the other as follows

Principles Of Operations Management, Chapter 9, Problem 2P , additional homework tip  5

And the work pieces moved from one department to the other as follows

Principles Of Operations Management, Chapter 9, Problem 2P , additional homework tip  6

Calculation of cost of the layout:

After switching departments M and D, calculate the total material handling cost, MH cost using the formula

Calculate the total weekly material handling cost, MH cost using the formula

MHcost=i=1nj=1nxij×Cij (3)

where   n= total number of departments

i,j = individual departments

xij= number of loads moved from department i to department j

Cij= cost to move an item from department i to department j

Substitute in equation (3), the various values to obtain

MtoD=20×600×$0.5=$6,000MtoF=10×1,800×$0.5=$9,000MtoP=6×200×$0.5=$600

DtoF=400×8×$0.5=$1,600DtoP=200×12×$0.5=$1,200FtoP=4×1,800×$0.5=$3,600

Add all the costs to obtain the total material handling costs $22,000_ .

Hence, the cost of the layout is $22,000.

d)

Summary Introduction

To determine: The best layout in terms of cost perspective.

d)

Expert Solution
Check Mark

Explanation of Solution

Best layout in terms of cost perspective:

From above calculations, the cost perspective, Plan B which has the total material handling costs of $20,600 is cost effective than other plans.

Hence, Plan B is the best layout.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
There's 8 parts, but I need some help with them. I always get confused on which is most critical of a path
Menu Item Sales and Cost Data Taco Salad: Number Sold: 127; Item Cost: $0.71; Selling Price: $3.25 Lasagna: Number Sold: 48; Item Cost: $0.92; Selling Price: $4.67 Chicken: Number Sold: 31; Item Cost: $1.20; Selling Price: $3.00 Green Beans: Number Sold: 14; Item Cost: $0.20; Selling Price: $1.00 Corn: Number Sold: 13; Item Cost: $0.24; Selling Price: $1.00 Rice: Number Sold: 9;Item Cost: $0.13; Selling Price: $1.00 Menu Item Classification: Low contribution margin, low menu mix % DOG High contribution margin, low menu mix % PUZZLE Low contribution margin, high menu mix % PLOWHORSE High contribution margin, high menu mix o/o STAR QUESTION 1 Complete the menu analyses worksheet below. Calculations will be done using the information above. Restaurant: Date: MealPeriod: (A) ☐ (B) (C) (D) (E) (F) (G) (H) (1) (J) Menu Mix Popularity % Item Item Sold/(Menu Mix Menu Menu Item Food Menu Contribution Contribution Contribution Category Item Mix %): (B/K) Cost Selling Margin Price Margin (E-D)…
1) Around the Clock Production of Fire Nozzles View the videos Around the Clock Production of Fire Nozzles 1  https://media.gaspar.mheducation.com/GASPARPlayer/play.html?id=132KoZwS0yMEgsToDUsZjJe (9.44 minutes, Ctrl+Click on the link) and Around the Clock Production of Fire Nozzles 2 https://media.gaspar.mheducation.com/GASPARPlayer/play.html?id=44JM0cKtFLqHP5bad6KOHAm (7.43 minutes, Ctrl+Click on the link); what are your key takeaways (tie to one or more of the topics discussed in Chapters 12 and/or 13) after watching these videos. Note: As a rough guideline, please try to keep the written submission to one or two paragraphs.   2) Cyberdyne Systems stocks and sells Cyberdyne glucose meters. The firm gathered the following information from its South Pasadena office:   Demand = 19,500 units per year Ordering cost = $25 per order Holding cost = $4 per unit per year   The firm’s operations manager wants to calculate the:   a) EOQ for the glucose meters. b) Annual holding costs for the…
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
  • Text book image
    Practical Management Science
    Operations Management
    ISBN:9781337406659
    Author:WINSTON, Wayne L.
    Publisher:Cengage,
    Text book image
    MARKETING 2018
    Marketing
    ISBN:9780357033753
    Author:Pride
    Publisher:CENGAGE L
    Text book image
    Marketing
    Marketing
    ISBN:9780357033791
    Author:Pride, William M
    Publisher:South Western Educational Publishing
  • Text book image
    Purchasing and Supply Chain Management
    Operations Management
    ISBN:9781285869681
    Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
    Publisher:Cengage Learning
    Text book image
    Principles of Management
    Management
    ISBN:9780998625768
    Author:OpenStax
    Publisher:OpenStax College
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Text book image
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College