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 7DQ
The XYZ Company manufactures a seasonal product. At the present time, the company uses a level labor force as a matter of company policy. The company is afraid that if it lays off workers, it will not be able to rehire them or find qualified replacements. Does this company have an aggregate planning problem? Discuss.
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The XYZ Company manufactures a seasonal product. At the present time, the company uses a level labor force as a matter of company policy. The company is afraid that if it lays off workers, it will not be able to rehire them or find qualified replacements. Does this company have an aggregate planning problem? Discuss.
Deb Bishop Health and Beauty Products has developeda new shampoo, and you need to develop its aggregate schedule.The cost accounting department bas supplied you the costsrelevant to the aggregate plan, and the marketing department hasprovided a four-quarter forecast. All are shown as follows: Your job is to develop an aggregate plan for the next four quarters.a) First, try hiring and layoffs (to meet the forecast) as necessary.b) Then try a plan that holds employment steady.c) Which is the more economical plan for Deb Bishop Healthand Beauty Products?
Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has
supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast.
E Click the icon to view the four-quarter forecast.
E Click the icon to view the costs relevant to the aggregate plan.
Your job is to develop an aggregate plan for the next four quarters.
a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers).
Hiring and Layoff Plan
Layoff
(Units)
Hire
Quarter
Forecast
Production
(Units)
1,500
1
1,400
Costs
Previous quarter's output
Beginning inventory
1,500 units
O units
$45 per unit
$9 per unit for every unit held
at the end of the quarter
$40 per unit
$70 per unit
$35 per unit
$20 extra per unit
Stockout cost for backorders
Inventory holding cost
Quarter
Forecast
Hiring workers
Layoff workers
Unit cost
1
1,400
1,000
1,600
3
Overtime
4…
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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- The opening backlog is 800 units. Forecast demand is as shown here. Calculate theweekly production for level production if the backlog is to be reduced to 100 units.arrow_forwardDeb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. Click the icon to view the four-quarter forecast. Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). More Info Hiring and Layoff Plan Hire Layoff Quarter Forecast Production (Units) (Units) 1,600 1 1,400 1400 0 200 2 1,000 1,000 0 400 3 1,600 1,600 600 0 4 1,200 ☑ More Info Previous quarter's output Beginning inventory Stockout cost for backorders Inventory holding cost Hiring workers Layoff workers Unit cost Overtime Subcontracting Costs 1,600 units $45 per unit O units $11 per unit for every unit held at the end of the quarter $50 per…arrow_forwardThe planner at a company that makes garden tractors is about to prepare an aggregate production plan that will cover the next 6 months. She has collected the following information: Month Demand Forecast Above the available capacity through permanent workforce 1 1,000 2 1,000 3 2,000 4 3,000 5 4,000 6 1,000 Total: 12,000 Production per month = 20 units per worker Initial inventory = 500 units Desired ending inventory (at the end of month 6) = 0 units Cost: Hire cost = $500 per temporary worker Inventory = $10 per tractor per month Backorder = $150 per tractor per month The optimum aggregate plan is: Month 1 2 3 4 5 6 Total Forecast Demand above regular capacity 1,000 1,000 2,000 3,000 4,000 1,000 12,000 # of temporary workers required 50 50 100 150 200 50 Temp. Workers hired 25 25 50 75 0 0 Temp. workers laid off 0…arrow_forward
- please help me with Question 3 thanks! Demand forecasts for 2021 are as follows: Month Demand Jan 140,000 Feb 78,900 Mar 85,800 Apr 89,100 May 123,600 Jun 136,350 Jul 120,450 Aug 106,950 Sep 121,950 Oct 135,750 Nov 87,000 Dec 93,300 Each worker can produce 900 products per month and is paid $1500 per month. Assume that at the end of last year, the company has 100 employees working on the production line. Hiring and layoff (firing) decisions are made at the beginning of each month, and associated costs are charged at that time. It costs the company $400 to hire and $800 to lay off a worker. The company incurs holding cost for the amount of ending inventory in each month, and incurs backorder cost at the end of each month for any unfilled orders. The company incurs $2 per month for holding one unit in inventory and $4 per unit backorder. 1 Prepare a level aggregate plan. Under this level aggregate plan, how…arrow_forwardHow may a spreadsheet be used in capacity planning?arrow_forward9/Samsung Company is producing Laptops and Tablets. They are deciding whether to use job-order costing or activity based costing. Based on next year’s budget, two cost pools have been developed with the following information: Particulars Laptops Tablets Overhead Assigned Direct labor hours 5000 10000 Sewing machine hours 500 300 OMR 400,000 Machine set up hours 100 400 OMR 200,000 Find out the pre-determined overhead rate if overhead is applied based on the direct labor hour rate. a. OMR 400 per hour b. OMR 40 per hour c. OMR 4 per hour d. OMR 4000 per hourarrow_forward
- Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day. You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua that you can do a better job at aggregate planning than her current staff. She said, "Fine. You do that, and you have a 1-year contract." To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Other data Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory Ending Inventory *Note that there is no holding cost for June. 8 people 4 hours 20 days 150 disk drives* O disk drives Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive…arrow_forwardIn doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with: а. no choice is correct O b. gallons of paint, but be concerned with the different colors to be produced c. all the different sizes and all the different colors by size O d. gallons, quarts, pints, and all the different sizes to be produced e. just gallons of paint, without concern for the different colors and sizes >> W OneDrive 86%arrow_forwardDiscuss how aggregate plans is implemented in service organizations. Give examplearrow_forward
- What are demand forecasting and capacity strategy? Give an example of demand forecasting for a business.arrow_forward5. Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day. You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua that you can do a better job at aggregate planning than her current staff. She said, "Fine. You do that, and you have a 1-year contract." To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Other data Current workforce (June) 8 people Labor-hours/disk drive 4 hours Workdays/month 20 days Beginning Inventory 150 disk drives* Ending Inventory O disk drives *Note that there is no holding cost for June. Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive…arrow_forwardDevelop a chase aggregate plan for Draper using apermanent workforce of 12 employees supplemented by overtime.All demand must be met each period.(a) Show what would happen if this plan were implemented.(b) Calculate the costs associated with this plan.(c) Evaluate the plan in terms of cost, customer service,operations, and human resources.arrow_forward
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