OPERATIONS MANAGEMENT CUSTOM ACCESS
11th Edition
ISBN: 9780135622438
Author: KRAJEWSKI
Publisher: PEARSON EDUCATION (COLLEGE)
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Chapter B, Problem 2P
Summary Introduction
Interpretation: The probability whether a customer will take the time less thana half-minute along with the probability whether a customer will take above 3 minutes is to be determined.
Concept Introduction:
Probability is a sub-partof mathematics. Probability refers to the numerical description, which states that how likely some event will happen after multiple trials.
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PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below:
Supply/Demand Info
Beginning
Jan
Feb
Mar
Apr
May
Jun
Forecast (demand)
53,800
53,400
51,000
63,800
49,200
59,000
Regular production
Overtime production
Subcontract production
Ending inventory
4,000
Hired employees
Fired employees
Total employees
190
Cost variables are as follows:
Cost Variables
Labor cost/hour
$16
Overtime cost/unit
$39
Subcontracting cost/unit
$35
Holding cost/unit/month
$14
Hiring cost/employee
$3,100
Firing cost/employee
$5,500
Here is some additional relevant (capacity) information:
Capacity Information
Total labor hours/SSD
4
Regular production units/employee/month
200…
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Chapter B Solutions
OPERATIONS MANAGEMENT CUSTOM ACCESS
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