Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
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Chapter 13, Problem 10DQ
Summary Introduction

To determine: Thedifference between aggregate planning in service and aggregate planning in manufacturing

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

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Question 4 b) Company ABC wishes to evaluate whether to produce a component internally or purchase from a vendor. The firm has the following options: Internal Production Process 1 Process 2 Purchase from Vendor Vendor 1 Vendor 2 Vendor 3 Variable cost of $17 per unit; annual fixed cost of $200,000 Variable cost of $14 per unit; annual fixed cost of $240,000 Offers a price of $20 per unit for any volume up to 30,000 units Offers a price of $22 per unit for 1,000 units or less, and $18 per unit for large quantities Offers a price of $21 per unit for the first 1,000 units and $19 per unit for additional units If the annual demand is 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best?
QUESTION 1 A master production schedule shows the following information MPS Week Week Week Week Beginning inventory = 300 31 Forecast 1.000 1,200 1,300 1.200 800 700 Actual customer orders Projected on-hand inventory Available to promise 800 1,000 MPS Based on the information in the MPS, what is the amount that is available to promise in week 4? O a. 1,200 Ob.700 Oc. 1.500 O d. 500
Question 3 Regular output capacity is 130 units per month. Regular cost per unit = K600. Overtime cost per unit = K900. Beginning inventory is 0 units. We have the forecast of engine demand shown below: a) Develop a chase plan that matches the forecast. Calculate the cost of the plan. b) Develop a level plan that uses inventory to absorb fluctuations. Compare the costs of the level plan to the costs of the chase plan from Part (a). Inventory carrying cost per unit per month = 20. Backlog cost per unit per month = K900. There should be no backlog in the final month. Month Forecast 1 120 2 135 3 140 4 120 5 125 6 125 7 140 8 Total 135 1,040
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