Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 14, Problem 6P
Summary Introduction
To construct: A gross material requirements plan.
Introduction:
Gross requirements plan:
The gross requirements plan is the plan where the independent and dependent demand for a product or a component before the on-hand inventory and the
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Explain the difference between aggregate planning in service and aggregate planning in manufacturing ?
3) AGGREGATE PLANNING
Mark Tuan, Operations Manager at GOT7 Furniture, has received the following
estimates of demand requirements:
January
1,100
February
1,200
March
1,400
April
1,800
May
1,800
June
1,600
Assuming stockout costs for lost sales of RM100 per unit, inventory carrying costs of
RM25 per unit per month, and a zero beginning and ending inventory. Analyze the extra
cost if the company vary the workforce, which performs at a current production level of
1,300 units per month. The cost of hiring additional workers is RM3,000 per 100 units
produced. The cost of layoffs is RM6,000 per 100 units cut back.
The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit,
inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis:
Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $30 per unit produced. The cost of layoffs is $60 per unit cut
back. (Enter all responses as whole numbers.)
Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1300 in August requires a layoff (and related costs) of 0 units in August).
Month
Hire
Demand Production (Units)
Layoff
Ending
(Units)
Inventory
Stockouts
(Units)
1
July
1300
2 August
1150
3 September
1100
4 October
1600
5 November
1900
6 December
1900
Chapter 14 Solutions
Principles Of Operations Management
Ch. 14 - Ethical Dilemma For many months your prospective...Ch. 14 - What is the difference between a gross...Ch. 14 - Prob. 2DQCh. 14 - What are the similarities between MRP and DRP?Ch. 14 - How does MRP II differ from MRP?Ch. 14 - Which is the best lot-sizing policy for...Ch. 14 - What impact does ignoring carrying cost in the...Ch. 14 - MRP is more than an inventory system; what...Ch. 14 - What are the options for the production planner...Ch. 14 - Master schedules are expressed in three different...
Ch. 14 - What functions of the firm affect an MRP system?...Ch. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - As an approach to inventory management, how does...Ch. 14 - Prob. 16DQCh. 14 - Use the Web or other sources to: a) Find stories...Ch. 14 - Prob. 18DQCh. 14 - Prob. 19DQCh. 14 - You have developed the following simple product...Ch. 14 - You are expected to have the gift bags in Problem...Ch. 14 - Prob. 3PCh. 14 - Your boss at Xiangling Hu Products, Inc., has just...Ch. 14 - The demand for subassembly S is 100 units in week...Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - You are product planner for product A (in Problem...Ch. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Heather Adams, production manager for a Colorado...Ch. 14 - Prob. 19PCh. 14 - Prob. 20PCh. 14 - Prob. 21PCh. 14 - Prob. 22PCh. 14 - Data Table for Problems 14.22 through 14.25 ...Ch. 14 - Develop a POQ solution and calculate total...Ch. 14 - Using your answers for the lot sizes computed in...Ch. 14 - M. de Koster, of Rene Enterprises, has the master...Ch. 14 - Grace Greenberg, production planner for Science...Ch. 14 - Prob. 28PCh. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Courtney Kamauf schedules production of a popular...Ch. 14 - Using the data for the coffee table in Problem...Ch. 14 - Prob. 1CSCh. 14 - Prob. 2CSCh. 14 - Prob. 1.1VCCh. 14 - Prob. 1.2VCCh. 14 - Prob. 1.3VCCh. 14 - Prob. 2.1VCCh. 14 - Prob. 2.2VCCh. 14 - Prob. 2.3VC
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- The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce to produce the prior month's demand. The firm produced 1,300 units in June. The cost of hiring additional workers is $30 per unit produced. The cost of layoffs is $65 per unit cut back. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1200 in August requires a layoff (and related costs) of 100 units in August). Layoff (Units) Ending Inventory Hire Stockouts Month Demand Production (Units) (Units) 1 July 1200 2 August 1300 3 September 1200 4 October 1700 5 November 1650 6. December 1650arrow_forwardDefine the aggregate operations plan?arrow_forwardThe following table lists the components needed to assemble an end item, the manufacturing or purchase lead times (in weeks) for typical lot sizes, amount on hand, and the direct components of each item and, in brackets, the number of each component for each parent.Ā Item Lead Time Amount onHand DirectComponents Ā Ā End item 1 - L(2), C(1), K(3) Ā Ā L 1 8 B(2), J(3) Ā Ā Ā Ā Ā Ā Ā Ā C 3 14 G(2), B(2) Ā Ā Ā Ā Ā Ā Ā Ā K 3 18 H(4), B(2) Ā Ā Ā Ā Ā Ā Ā Ā B 1 24 Ā Ā Ā J 4 34 Ā Ā Ā G 3 38 Ā Ā Ā H 3 - Ā Ā a.Ā This part of the question is not part of your Connect assignment.b.Ā If 44 units of the end item are to be assembled, how many additional units of B are needed? (You donāt need to develop the MRP tables.)Additional units Ā Ā Ā Ā Ā Ā Ā c.Ā An order for 44 units of the end item is scheduled to be shipped at the start of week 8. What is the latest week that the components of the order can be started and the order still be ready to ship on time? (You donāt need to develop the MRP tables.)The latest weekarrow_forward
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