OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
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Chapter 11, Problem 6P
eXcel The Chewy Candy Company would like to determine an aggregate production plan for the next six months. The company makes many different types of candy but feels it can plan its total production in pounds provided that the mix of candy sold does not change too drastically. At the present time, the Chewy Company has 70 workers and 9000 pounds of candy in inventory. Each worker can produce 100 pounds of candy a month and is paid S 19 an hour (use 160 hours of regular time per month). Overtime, at a pay rate of 150 percent of regular time, can be used up to a maximum of 20 percent in addition to regular time in any month. It costs so cents to store a pound of candy for a year, $1,200 to hire a worker, and $1,500 to lay off a worker. The
- a. Determine the costs of a level production strategy for the next six months, with an ending inventory of 8000 pounds.
- b. Determine the costs of a chase strategy for the next six months.
- c. Calculate the costs of using the maximum overtime for the two months of highest demand.
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1. Foxie Owl’s Besty Bagel shop makes fresh bagels. She has to buy raw materials fresh every day for selling on that day. She wants to know exactly how much should she spend on raw materials. Foxie did some analysis over the past month and came back with the following numbers: Daily demand was equally likely to be 200, 225, 250, 275, or 300 bagels. What should be the number of bagels on hand to satisfy a Fill Rate requirement of 96%, rounded to next integer value?
Group of answer choices
300
275
286
263
2. Suppose that instead of a discrete demand distribution, Foxie’s shop determines that the daily demand for bagels is normally distributed, with a mean of 250 and a standard deviation of 35. Foxie still wants a Fill Rate of 98%. What is the appropriate level of on-hand inventory for Foxie’s shop?
Group of answer choices
263
274
257
270
c. Compute and tabulate the daily demand for each month in the table below (round off to the nearest whole number).
MONTH
PRODUCTION DAYS
DEMAND FORECAST
DEMAND PER DAY
JAN 2022
16
150
?
FEB 2022
16
150
?
MAR 2022
23
250
?
APR 2022
21
250
?
MAY 2022
22
400
?
JUN 2022
22
500
?
JUL 2022
21
600
?
AUG 2022
20
750
?
SEP 2022
20
450
?
OCT 2022
20
250
?
NOV 2022
16
150
?
DEC 2022
16
150
?
TOTAL
?
?
d. Assuming that MPQ Limited had adopted a level strategy for the year ended 31 December 2022, compute the average daily demand for the year (round off to the nearest whole number).
e. Prepare a graph showing the monthly forecasts and average daily forecast (in units per day) for MPQ Limited.
LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming four quarters. Demand in each of the four quarters and production, overtime, and subcontracting capacities are
reported in the table below, in addition to the feasible production plan. The relevant costs are:
• Regular time production cost is $10/unit.
Overtime production cost is $14/unit.
Subcontracting cost is $18/unit
Inventory is held at a cost of $1/unit/quarter.
• Units may be backordered at a cost of $4/unit/quarter.
Production
Resource
Regular Time Q1
Overtime Q1
Subcontract Q1
Regular Time Q2
Overtime Q2
Subcontract Q2
Regular Time Q3
Overtime Q3
Subcontract Q3
Demand in Quarter
Demand in Quarter
Q2
0
20
0
550
Q1
550
230
0
0
0
0
40
40
0
860
250
470
0
40
0
1330
What is the inventory cost for the year?
What is the backorder cost for the year?
What is the total cost for the year?
Q3
0
0
0
0
0
30
510
160
0
700
What is the total overtime production cost for the year?
Capacity
550
250
500…
Chapter 11 Solutions
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - A school district has forecast student enrollment...Ch. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - SOP or aggregate planning sometimes is confused...Ch. 11 - The XYZ Company manufactures a seasonal product....Ch. 11 - Prob. 8DQCh. 11 - Every firm has multiple objectives such as good...Ch. 11 - Prob. 10DQ
Ch. 11 - Prob. 11DQCh. 11 - Suppose we are considering the question of how...Ch. 11 - The Ace Steel Mill estimates the demand for steel...Ch. 11 - A barbershop has the following demand for haircuts...Ch. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - eXcel The Chewy Candy Company would like to...Ch. 11 - A company produces to a seasonal demand, with the...Ch. 11 - Prob. 8PCh. 11 - Question: 9. The Restwell Motel in Orlando,...Ch. 11 - eXcel 10. The Ban go Toy Company produces several...Ch. 11 - A small textile company makes several types of...Ch. 11 - Valley View Hospital faces somewhat seasonal...
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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