Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 13, Problem 20P
Summary Introduction
To develop: An aggregate plan for the given information using transportation method.
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Ram Roy's firm has developed the following supply,
demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation
method. What is the cost? Assume that the initial inventory has no
holding cost in the first period and backorders are not permitted.
supply available
period
initial inventory
regular-time cost per unit
Overtime cost per unit
subcointract cost per unit
carrying cost per unit per month
1
2
3
Regular Tim overtime subcontrac demand forecast
30
35
30
15
$
LA LA LA L
$
$
$
90.00
110.00
120.00
3.00
15
10
10
5
5
5
50
50
40
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:
May
2,100
January
February
1,450
1,700
1,700
June
2,300
July
1,900
March
April
1,700
August
1,300
Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $65 per unit. Inventory holding cost is $25 per unit per
month. Ignore any idle-time costs. Evaluate the following plan.
This exercise contains only Plan E.
Plan E: Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of the demand. Subcontract cost is $75 per unit.
Month
10 December
1 January
2 February
3 March
4 April
5 May
6 June
7 July
8 August
Demand
1,450
1,700
1,700
1,700
2,100
2,300
1,900
1,300
Production
(Units)
1,600
1,600
1,600
1,600
1,600
1,600
1,600
1,600
Plan E
Ending
Subcontract (Units) Inventory
200
The total subcontracting cost = $
(Enter your response as…
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:
January
February
1,500
May
2,300
1,700
June
2,100
March
1,700
July
1,900
April
1,700
August
1,500
Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of
lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan C.
Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding
initial inventory and allow varying inventory levels.
Conduct your analysis for January through August.
The average monthly demand requirement = units. (Enter your response as a whole number.)
Chapter 13 Solutions
Principles Of Operations Management
Ch. 13 - Make the case for, and then against, this pricing...Ch. 13 - Prob. 1DQCh. 13 - Why are SOP teams typically cross-functional?Ch. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQ
Ch. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - The president of Hill Enterprises, Terri Hill,...Ch. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Consuelo Chua, Inc., is a disk drive manufacturer...Ch. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 11PCh. 13 - Southeast Soda Pop, Inc., has a new fruit drink...Ch. 13 - Ram Roys firm has developed the following supply,...Ch. 13 - Jerusalem Medical Ltd., an Israeli producer of...Ch. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Dwayne Cole, owner of a Florida firm that...Ch. 13 - Prob. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 23PCh. 13 - Prob. 24PCh. 13 - Prob. 25PCh. 13 - Prob. 26PCh. 13 - Evaluate the various configurations of operating...Ch. 13 - Prob. 2CSCh. 13 - After researching revenue (yield) management in...Ch. 13 - The Magic used its original pricing systems of...Ch. 13 - Prob. 1.3VC
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