Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter C, Problem 7P
Summary Introduction

Interpretation: The best order quantity is to be calculated.

Concept Introduction: Specific quantity of an item to be delivered at a specific date is lot size. Ordering optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ.

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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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PP.63 Jupiter, a large candy company, is having great success with its "Swan" family of candy bars.  Due to a number of factors they like to plan their production at least six months into the future.  The table below contains their demand projections (in tons) for April through September: Supply/Demand Info   Beginning        Apr           May           Jun           Jul           Aug           Sep      Predicted Sales   45,500 45,100 51,900 52,800 47,900 47,200 Regular production               Overtime production               Subcontract production                      Ending inventory 14,400             Hired employees               Fired employees               Total employees 423             Cost variables are as follows: Cost Variables                           Labor cost/hour $13 Overtime cost/ton $30 Subcontracting cost/ton    $28 Holding cost/ton/month    $14 Hiring cost/employee $3,700 Firing cost/employee $5,800 Here is some additional…
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Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY