OPERATIONS MANAGEMENT CUSTOM ACCESS
11th Edition
ISBN: 9780135622438
Author: KRAJEWSKI
Publisher: PEARSON EDUCATION (COLLEGE)
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Chapter C, Problem 14P
Summary Introduction
Interpretation:The production level and the sales that need to be achieved in reaching the highest profits are to be calculated.
Concept Introduction:The production level and the sales should be decided based on the
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A company blends and bottles an energy drink in various flavors for college students. The aggregate forecast for the next four quarters (1 year) in thousands of gallons is as follows:
Quarter Demand forecast per 1000 gallons
1 4002 7003 8504 650Each employee works 550 standard straight-time hours each quarter.
On average, it takes 27 hours to produce and package 1 unit (1,000 gallons).
Straight-time labor costs $6.00/hour; overtime labor costs $9.00/hour.
Inventory holding cost is approximately $4.50/unit (1,000 gallons) per quarter, based on ending inventory per quarter.
Due to the extremely hot weather, there is no initial inventory on hand to start the first quarter.
Management wants a constant workforce (no hiring and no layoffs).
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Using a level strategy program, what will the annual labor cost be if only 30 employees are available and overtime is used?
City Sod is a small business that sells and lays sod (rolled strips of grass). The owner has devised a forecasting procedure based on demand history from previous years plus projection of demand in recent weeks. The forecast for the next six weeks, in labor hours of sod laying, is
850 870 950 910 970 870
CmTently, City Sod has a staff of sod layers consisting of five crew chiefs and 15 laborers. A crew chief lays sod along with the laborers, but also directs the crew. The owner has decided on the following staffing policies:
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A manager uses this equation to predict demand for landscaping services: Ft= 10 + 5t
Over the past eight periods, demand has been as follows:
Period, t: 1
Demand:
15
2
21
Period, t Tracking signal
1
2
3
4
5
6
7
8
3
23
30
5
32
6
38
42
Click here for the Excel Data File
Compute the tracking signals for Periods 1-8. (Negative values should be indicated by
a minus sign. Round your intermediate calculations and final answers to 3 decimal
places.)
8
47
Chapter C Solutions
OPERATIONS MANAGEMENT CUSTOM ACCESS
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