Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 3, Problem 32AP
Summary Introduction
To determine:
Optimal plan as a linear program
Introduction
Optimal plan is a plan in which efficiency and effectiveness of all variables are maximized. It is a plan in which worker’s output is maximum while keeping cost and time minimized.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A local firm manufactures children’s toys. The projected demand over the next four months for one particular model of toy robot is (given)
Assume that a normal workday is eight hours. Hiring costs are $350 per worker and firing costs (including severance pay) are $850 per worker. Holding costs are $4.00 per aggregate unit held per month. Assume that it requires an average of 1 hour and 40 minutes for one worker to assemble one toy. Shortages are not permitted. Assume that the ending inventory for June was 600 of these toys and the manager wishes to have at least 800 units on hand at the end of October. Assume that the current workforce level is 35 workers. Find the optimal plan by formulating as a linear program.
Work−in−Process
Inventory has a debit balance of
$84,000
and Manufacturing Overhead has a credit balance of
$10,000.
If an additional
$54,000
of direct labor and
$1,000
of indirect labor are incurred during production, what is the balance of
Work−in−Process
Inventory?
A.
$30,000
B.
$9,000
C.
$138,000
D.
A process requires a 20 second setup for each batch. When producing, the process can produce one unit every 12 seconds. Demand for the product is 7 units per minute.
With a batch size of 20 units, what is the process utilization?
Note: Do not round your intermediate calculations. Round your answer to 2 decimal places
Chapter 3 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 3.1 - Prob. 1PCh. 3.1 - Prob. 2PCh. 3.1 - Prob. 3PCh. 3.1 - Prob. 4PCh. 3.1 - Prob. 5PCh. 3.1 - Prob. 6PCh. 3.2 - Prob. 7PCh. 3.2 - Prob. 8PCh. 3.2 - Prob. 9PCh. 3.2 - Prob. 10P
Ch. 3.2 - Prob. 11PCh. 3.2 - Prob. 12PCh. 3.3 - Prob. 13PCh. 3.3 - Prob. 14PCh. 3.3 - Prob. 15PCh. 3.3 - Prob. 16PCh. 3.4 - Prob. 17PCh. 3.4 - Prob. 18PCh. 3.4 - Prob. 19PCh. 3.4 - Prob. 20PCh. 3.4 - Prob. 21PCh. 3.4 - Prob. 22PCh. 3.4 - Prob. 23PCh. 3.5 - Prob. 26PCh. 3.5 - Prob. 27PCh. 3.6 - Prob. 29PCh. 3.6 - Prob. 30PCh. 3 - Prob. 31APCh. 3 - Prob. 32APCh. 3 - Prob. 33APCh. 3 - Prob. 34APCh. 3 - Prob. 35APCh. 3 - Prob. 36AP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Acme, Corp. produces and sells tennis rackets. Each tennis racket is sold for $150 and average total costs per racket are $125, $100 of which are variable. Acme's fixed costs total $10,000 per month. What is Acme's unit contribution margin? A. $50 B. Neither of these C. $25arrow_forwardA company that makes shopping carts for supermarkets and other stores recently purchased somenew equipment that reduces the labor content of the jobs needed to produce the shopping carts.Prior to buying the new equipment, the company used five workers, who produced an average of80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the newequipment, it was possible to transfer one of the workers to another department, and equipment costincreased by $10 per hour while output increased by four carts per hour.a. Compute labor productivity under each system. Use carts per worker per hour as the measure oflabor productivity.arrow_forwardA company that makes shopping carts for supermarkets and other stores recently purchased somenew equipment that reduces the labor content of the jobs needed to produce the shopping carts.Prior to buying the new equipment, the company used five workers, who produced an average of80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the newequipment, it was possible to transfer one of the workers to another department, and equipment costincreased by $10 per hour while output increased by four carts per hour.a. Compute labor productivity under each system. Use carts per worker per hour as the measure oflabor productivity.b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plusequipment) as the measure.c. Comment on the changes in productivity according to the two measures, and on which one youbelieve is the more pertinent for this situation.arrow_forward
- A shoe manufacturer that operates 8 hours a day (no break) has developed a new sneaker per an important client's request. However, the client does not want to proceed with an order if the manufacturer cannot reach at least 88% efficiency during production. If SAM (standard allowed minute) to complete 1 pair of shoes is 30 minutes, how many pairs of shoes must each employee at the factory produce in a day to meet this client's requirements? Round your answer to the nearest whole number, but do not round until your final answer. Group of answer choices 14 pairs 16 pairs 15 pairs 12 pairsarrow_forwardOld Pueblo Engineering Contractors creates six-month “rolling” schedules, which are recomputed monthly. For competitive reasons (it would need to divulge proprietary design criteria, methods, and so on), Old Pueblo does not subcontract. Therefore, its only options to meet customer requirements are (1) work on regular time; (2) work on overtime, which is limited to 30 percent of regular time; (3) do customers’ work early, which would costan additional $5 per hour per month; and (4) perform customers’ work late, which would cost an additional $10 per hour per month penalty, as provided by their contract. Old Pueblo has 25 engineers on its staff at an hourly rate of $30. The overtime rate is $45. Customers’ hourly requirements for the six months from January to June are January 5000 February 4000 March 6000 April 6000 May 5000 June 4000 Develop an aggregate plan using a spreadsheet. Assume 20 working days in each month. 12. Alan Industries is expanding its product line to include three…arrow_forwardManufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy. b.) Compute the costs of the Level Strategy c.) Compare the costs of the two strategies. Which one is superior?arrow_forward
- Compassion is a new orphanage in the Philippines. Assume this will be the only orphanage in the country. In their national legislature, one of the decisions facing the government is whether to contract the orphanage to private control or give it public ownership, headed by a board of directors. Suppose that the government's top priority is to minimize the cost associated with the orphanage. Which option is consistent with this goal? Put the orphanage under private control; money that is unused from the orphanage would be given to charity. Put the orphanage under private control; the controlling party would cut costs to maximize their profit. Put the orphanage under public control; the board of directors would cut costs to maximize profit. Put the orphanage under public control; money which is unused will be able to be put back into the public coffers. Suppose that the government's top priority is instead to maximize the quality of the orphanage and to make sure that the orphans will…arrow_forwardManufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy.arrow_forwardRecall "Tommy's Dresses to go" case. Three years after, this company still rents designer dresses to customers, but it has managed to streamline its internal processes and expand to different segments of demand. Now, customers can rent clothes for anywhere between 1 days to 30 days, and each customer is sent only one (1) dress (instead of 2 dresses described in the case). The company alsó takes only 13 number of days to turn around a dress (i.e., this the duration starting with return from a customer, to again being rented out to a customer). The current demand is an average of 1,000 customers per day, and the company owns total of 30 thousand dresses. What is the average rental duration? (i.e., what is the average number of days, a customer keeps a dress).arrow_forward
- An all-wood furniture manufacturer operates 8 hours per day for 200 days per year, and has a demand of 2,000 units per day. There are four production cycles per day. Assume the following: 7,700 units produced per day, holding cost per unit is $5 per unit per year and labor rate to do line set-ups is $13 per hour. With quick set-ups, the production line must be quickly re-organized. What is the target set-up cost? Please round to two decimals and do not include a dollar sign. What is the set-up time in minutes?arrow_forwardYou are an experienced machinist with a small tool shop. You have been asked to submit a bid to produce 12 special clamps for a new die that is under construction. You estimate that the material costs (metal and fasteners) for each clamp are $150.00. You also estimate that 10.65 labor hours are needed to produce the first clamp. The value of your labor is $50/hour. From similar orders in the past, you estimate that there is a 90% learning curve for this type of work. Using this information, what is the lowest total bid (cumulative price for 12 clamps) you should submit if you charge a 25% markup on material and you wish to recoup your labor costs? Hint: set up formulas in Excel (see Moodle video). This is a long problem. Round your answer to 2 decimal places and DO NOT include the $ sign or a comma. For example, answer 4567.89 and NOT $4,567.89 Answer: Checkarrow_forwardA coffee shop takes two steps to make a cup of coffee. Step 1 takes 30 seconds. Step 2 takes 20 seconds. Each step is staffed by one worker, for a total of two workers. Each worker is paid $20 per hour. Assume wages are a variable cost. Each coffee is sold for $10. Material costs are $3 per cup. Fixed costs are $200 per hour. Assume demand is unlimited. How much profit does the coffee shop make per hour? a $500 b $600 c $700 d $800arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY