Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter D, Problem 19P
A
Summary Introduction
Interpretation: The annual production quantity should be determined if the Company will be able to sell all that it can produce.
Concept Introduction: The Company produces different chemicals and solvents, particularly for the use of glue industry.
B
Summary Introduction
Interpretation: The lot size of each product, based on the given data and information should be determined.
Concept Introduction: The Company produces different chemicals and solvents, particularly for the use of glue industry.
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Supply/Demand Info
Beginning
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Feb
Mar
Apr
May
Jun
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53,800
53,400
51,000
63,800
49,200
59,000
Regular production
Overtime production
Subcontract production
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Fired employees
Total employees
190
Cost variables are as follows:
Cost Variables
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$16
Overtime cost/unit
$39
Subcontracting cost/unit
$35
Holding cost/unit/month
$14
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Firing cost/employee
$5,500
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Capacity Information
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Regular production units/employee/month
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Chapter D Solutions
Operations Management: Processes and Supply Chains (11th Edition)
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