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 10, Problem 4P
a
Summary Introduction
Interpretation: Quarterly production rate which minimize the anticipatory inventory is to be determined.
Concept Introduction:
Anticipatory production is the stock kept by firms to meet uncertain demand or any increase in price of inputs or any uncertain situation.
b
Summary Introduction
Interpretation: The Anticipatory gallons that will be produced are to be specified.
Introduction:
Anticipatory production is the stock kept by firms to meet uncertain demand or any increase in price of inputs or any uncertain situation.
c
Summary Introduction
Interpretation: Level of production rate required is to be determined.
Introduction:
Anticipatory production is the stock kept by firms to meet uncertain demand or any increase in price of inputs or any uncertain situation.
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Students have asked these similar questions
Plan production for a four-month period: February through May. For February and March, you should produce to exact demand
forecast. For April and May, you should use overtime and Inventory with a stable workforce; stable means that the number of workers
needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime
labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are
100 workers on January 31. You are given the following demand forecast: February, 80,640; March, 67,200; April, 100,280; May,
40,280. Productivity is four units per worker hour, eight hours per day, 21 days per month. Assume zero Inventory on February 1. Costs
are: hiring, $50 per new worker, layoff, $70 per worker laid off, Inventory holding, $11 per unit-month; regular time labor, $12 per hour;
overtime, $18 per hour; backorder, $22 per unit.
Develop a production plan and calculate…
Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 90,000; March 65,000; April 110,000; May, 55,000. Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1. Costs are hiring, $50 per new worker; layoff, $70 per worker laid off; inventory holding, $10 per unit-month; straight-time labor, $10 per hour; overtime, $15 per hour; backorder, $20 per unit a. Find the total cost of this plan?
An engineering plant has developed the accompanying supply, demand, cost and inventory data. The engineering plant has a constant workforce and meets all its demands. Allocate production capacity to satisfy demand at a minimum cost. What is the cost of this plan?
(Assume that back ordering is not a viable alternative for the plant)
Demand forecast
Period
Demand (Unit)
1
650
2
700
3
900
Supply Capacity available (units)
Period
Regular time
Overtime
Subcontract
1
350
100
250
2
450
100
250
3
500
100
250
Other Data
Initial Inventory
100 units
Regular-time cost per unit
R 50
Overtime cost per unit
R 65
Subcontract cost per unit
R 80
Carrying cost per unit per period
R 1
Back order cost per unit per period
R 4
Chapter 10 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 10 - List the types of costs incurred when employees...Ch. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Explain why management should be concerned about...Ch. 10 - The Barberton Municipal Division of Road...Ch. 10 - Bob Canton’s golf camp estimates the following...Ch. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Management at the Kerby Corporation has determined...Ch. 10 - Gretchen’s Kitchen is a fast-food restaurant...
Ch. 10 - Prob. 7PCh. 10 - Tax Prep Advisers, Inc. has forecasted the...Ch. 10 - Climate Control, Inc. makes expedition-quality...Ch. 10 - Prob. 11PCh. 10 - Gemini Inc. is using the Sales and Operations...Ch. 10 - Gerald Glynn manages the Michaels Distribution...Ch. 10 - Cara Ryder manages a ski school in a large resort...Ch. 10 - Prob. 15PCh. 10 - Prob. 17PCh. 10 - The Hickory Company manufactures wooden desks....Ch. 10 - Prob. 19PCh. 10 - The Mowry Machine Shop still has five jobs to be...Ch. 10 - If we use the same number of workers in each...Ch. 10 - Prob. 2AMECh. 10 - Prob. 3AMECh. 10 - Suppose the overtime cost is $3,300. What happens...Ch. 10 - Suppose the undertime cost is the same as the...Ch. 10 - Prob. 6AMECh. 10 - Prob. 1VCCh. 10 - Does Starwood employ a chase, level, or mixed...Ch. 10 - How would staffing for the opening of a new hotel...Ch. 10 - Explain the alternatives available to Darlene Fry...Ch. 10 - Prob. 2C
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