Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 13, Problem 7P
Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data:
*No costs are incurred for unmet demand, but unmet demand (backorders) must be handled in the following period. If half or more of a worker is needed, round up.
**Note that there is no holding cost for June.
What will each of the two following strategies cost?
a) Vary the workforce so that production meets demand. Chua had eight workers on board in June.
b) Vary overtime only and use a constant workforce of eight.
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Table below provides the demand forecast and production day information for an aggregate plan. Assume that no back orders are allowed in this case.
Month
January
February
March
April
May
June
Demand Forecast
3,000
4,500
3,400
2,500
4,000
3,200
Production Days
22
18
21
21
22
20
The costing information that is used to evaluate the total cost of each plan is as follows:• Inventory carrying cost: $4 per unit per month• Subcontracting cost per unit: $15 per unit• Working hours: 8 hours per day• Average pay rate: $12 per hour ($96 per day per worker)• Labour-hours to produce a unit: 2 hours per unit• Cost of increasing daily production rate (hiring and training): $300 per unit• Cost of decreasing daily production rate (layoffs): $700 per unitUse these information to formulate an aggregate plan. The firm would like to use level strategy: constant workforce for the aggregate planning. The firm chooses the average demand of the…
JAYB, manager of a Fabrication company, has the following aggregate demand requirements and other data for the upcoming four quarters.
Table 5: Forecast and cost information
[Jadual 5: Maklumat Ramalan dan kos]
Quarter
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Demand
[Permintaan]
Previous quarter's output
[Keluaran suku sebelumnya]
1,500 units
1
1,400
Beginning inventory
[Inventori awal]
200 units
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1,000
Hiring workers
[Pengambilan pekerja]
RM6 per unit
3
1,500
Laying off workers
[Pembuangan pekerja]
RM11 per unit
4
1,300
Unit cost
[Kos unit]
RM30 per unit
With the information given, JAYB wants you to calculate the total cost of using chase strategy by hiring and layoff workers.
Explain what aggregate planning is and how it is useful.
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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