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 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 4) APP Linear Programming Given the following information: Quarter Demand Regular Prod. Capacity = 3,000 units/gt 8,000 Overtime Prod. Capacity = 800 units/gtg 4,000 Subcontracting Capacity = 1,800 units/gt Regular Prod. Cost = $20/unit Overtime Prod. Cost = $25/unit 1 2 2,000 Inventory Capacity = 6,000 untis/atr Subcontracting Cost = $35/unit Inventory Cost 3 Beginning Inventory = 500 units = $4/unit/gtr Linear programming is to be used to determine a production plan strategy of Level Production, Overtime, and Subcontracting. a. Formulate the Objective Function (note that there are 3 quarters). b. Formulate all Constraints (standardized). c. How many decision variables are in the model? d. How many constraints are in the model? (do not include non-negativity constraints)
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?
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