Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem 7P
Macon Controls produces three different types of control units used to protect industrial equipment from overheating. Each of these Linus must be processed by a machine that Macon considers to be their process bottle neck. The plant operates on two 8-hour shifts, 5 days per week, 52 weeks per year. Table 4.2 provides the time standards at the bottleneck, lot sizes, and demand
- How many machines are required to meet minimum (pessimistic) demand, expected demand, and maximum (optimistic) demand?
- How many machines are required if the operations manager decides to double lot sizes?
- If the operations manager has three machines and believes that the plant can reduce setup time by 20 percent through process improvement initiatives, does that plant have adequate capacity to meet all demand scenarios without increasing lot sizes?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrollment of 2,200
new students per semester. However, in an effort to limit class sizes to a "reasonable" level (under 200, generally),
Southeastern's dean, Holly Lutze, placed a ceiling on enrollment of 1,500 new students. Although there was ample demand
for business courses last semester, conflicting schedules allowed only 1,400 new students to take business courses.
What is the utilization rate for Southeastern? (enter your response as a percentage rounded to one decimal place).
63.6%
68.2%
90%
92.5%
93.3%
A manager must decide which type of machine to buy, A, B, or C. Machines costs are as follows:
Machine
Cost
A
$40,000
B
$30,000
C
$80,000
Product forecast, processing times on the machines, and setup times are as follows:
Processing Time Per Unit (minutes)
Product
Annual Demand
A
B
C
Setup Times (minutes)
Production Lots (units)
1
16,000
3
4
2
20
200
2
12,000
4
5
3
35
100
3
6,000
5
6
3
60
50
4
30,000
2
4
1
15
500
Machines operate 10 hours a day, 250 days a year. The manager wants to have a capacity cushion of 10%.
a. Assume that only purchasing costs are being considered. Which machines would have the lowest total cost, and how many of that machines would be needed?
b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $11 each, B machines have an hourly operating cost of $10 each, and C machines have an hourly operating cost of $12 each. Which alternative would…
Don't used Chat gpt
Chapter 4 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - The Dahlia Medical Center has 30 labor rooms, 15...Ch. 4 - A process currently services an average of 50...Ch. 4 - An airline company must plan its fleet capacity...Ch. 4 - Food Goblin Supermarkets use both cashiers and...Ch. 4 - Returning to Problem 4, under both assumption of...Ch. 4 - Purple Swift manufactures birdhouses in lots of...Ch. 4 - Macon Controls produces three different types of...Ch. 4 - Up, Up, and Away is a producer of kites and wind...
Ch. 4 - Tuff-Rider, Inc. manufactures touring bikes and...Ch. 4 - Arabelle is considering expanding the floor area...Ch. 4 - The Astro World amusement park has the opportunity...Ch. 4 - Kim Epson operates a full-service car wash, which...Ch. 4 - MKM International is seeking to purchase a new CNC...Ch. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Dawson Electronics is a manufacturer of high-tech...Ch. 4 - A manager is trying to decide whether to buy one...Ch. 4 - Acme Steel Fabricators experienced booming...Ch. 4 - Referring to Problem 7, the operations manager at...Ch. 4 - Darren Mack owns the Gas n’ Go convenience store...Ch. 4 - Prob. 25PCh. 4 - Prob. 1VCCh. 4 - Prob. 2VCCh. 4 - How does Southwest Airlines know they are...Ch. 4 - Prob. 4VCCh. 4 - Prob. 1CCh. 4 - Prob. 2CCh. 4 - Prob. 3C
Additional Business Textbook Solutions
Find more solutions based on key concepts
2. In what circumstances might a market-pull approach or a technology-push approach to new-product design be th...
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
The flowchart for the process at the local car wash. Introduction: Flowchart: A flowchart is a visualrepresenta...
Principles Of Operations Management
Feeding America Each year, the Feeding America network helps provide food to more than 46 million people facing...
Operations and Supply Chain Management 9th edition
2. Identify four people who have contributed to the theory and techniques of operations management.
Operations Management
There is a huge demand in the United States and elsewhere for affordable women’s clothing. Low-cost clothing re...
Operations Management
Many companies including Company OM tried to implement dynamic pricing in their ticketing system. The dynamic p...
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
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
- Panini, a popular sandwich shop, offers 3 types of sandwiches: grilled vegetables, grilled chicken, and pastrami. The table below provides demand data: Grilled Vegetables Grilled Chicken Pastrami Demand per hour 25 9 12 There are up to five steps in the process of making sandwiches listed below with activity times (if no activity time, then than step is not done for that sandwich). Only 50% of customers want their sandwich toasted, no matter which sandwich is ordered. Step Grilled Vegetables(in minutes) Grilled Chicken(in minutes) Pastrami(in minutes) Cut bread 1 1 1 Grill 1.2 1.2 Slice meat 2 Toast 1.2 1.2 1.2 Wrap 0.8 0.8 0.8 Suppose Panini employs 1 worker at each step. a) Does Panini have enough capacity to fulfill the current demand for sandwiches? (b) What is the current capacity cushion for Panini? (as a %) c) If demand for Pastramis increase with the percentage indicated below, how much additional workers should Panini hire (if any), and where…arrow_forwardManufacturing Company uses FIFO method of accumulating costs in a two-department process. Materials are introduced at the inception of the process except for a special material which is added in department 2 at 60% completion as to overhead. Inspection is done at the end of the process in both departments. Production data for Department 2 are given below: In process, beginning, (80% labor, 70% overhead)2,000 Transferred in 14,900 In process, ending (40% labor, 20% overhead) 3,000 Normal spoilage 200 Abnormal spoilage (found at 30% completion as to laborand 15% as to overhead due to internal failure) 400 Cost data for the month:In process beginning:Transferred in 15,020 Special materials 1,900 Direct labor 4,388 Overhead 11,044 Current costs:Transferred in 137,080 Special materials 14,030 Direct labor 46,000 Overhead 113,564 The cost of units transferred to finished goods is?The cost of spoilage charged to revenue is?arrow_forwardFive customers brought in computers to be repaired to a small shop. Estimated repair times (in days) and dates promised are given below. Due dates were set based on available technicians; however, one technician had a medical emergency and will be unavailable for at least two weeks so processing times were adjusted. 1 2 3 Customer job Processing time (days) Due date (days) 3 5 4 -Select- 3 4 -Select- 2 4 6 10 5 5 Use the EDD rule and compute the start time, flow time, lateness, and tardiness for each job. Use minus sign to enter negative lateness values, if any. If your answer is zero, enter "0". 7 Sequence Start Time, days Flow Time, days Lateness, days Tardiness, days -Select- -Select- ✓ -Select-arrow_forward
- Problem 5-11 (Algo) A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine A B C Cost $80,000 $70,000 $40,000 Product forecasts and processing times on the machines are as follows: Annual Product Demand 1 25,000 2 22,000 3 20,000 4 9,000 PROCCESSING TIME PER UNIT (minutes) AS335 4 1 6 Click here for the Excel Data File U2462 Carrow_forwardEmployees Layoffs at the University Medical Center The University Medical Center is medium-sized, 300-bed capacity hospital at Dasmarinas Cavites. The facilities have grown gradually over the years and are now the 2nd largest in the town of Dasmarinas. It is entirely nonunion and has never experienced an employee layoff since its inception. Sister Veronica Cornista, the Chief Executive Officer of the hospital for 8 years presented a rather bleak financial of the BOD. This according to her is the result of the declining occupancy rate which has affected the hospital’s revenues to such an extent that it ran a deficit for the first time last 1998. Such declines have not been unusual for this industry because of increasing competition. So far, the only response to these changes has been tightening of requirements for equipment or supply purchases. The projected deficit for the coming year is around 1,300,000 unless some additional revenues were identified or some additional savings…arrow_forwardEx 5 Fitzsimmons & Fitzsimmons (2008) compare 2 capacity management strategies. Part of their comparison is presented below: Capacity plan: Level Capacity Chase Demand Customer waiting Generally low Moderate High Long run Labour skill level Low Forecasting Short run a) Motivate why the forecasting horizon is longer for Level capacity plans. b) Which assumption is used to reach the conclusion that a level capacity plan has a shorter customer waiting time?arrow_forward
- Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 35% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,500 loaves per month. Employees are paid $88 per hour. In addition to the laborcost, Charles also has a constant utility cost per month of $800 and a per loaf ingredient cost of $0.35 Current multifactor productivity for 640 work hours per month = loaves/dollar (round your response to three decimal places).arrow_forwardCharles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of this size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will requrie that the ovens be, loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,600 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $700 and a per loaf ingredient cost of $0.50. Current multifactor productivity for 640 work hours per month= .242 loaves/dollar (round your response to three decimal places). After increasing…arrow_forwardTax Prep Advisers, Inc., has forecasted the following staffingrequirements for tax preparation associates over the next12 months. Management would like three alternative staffingplans to be developed. The company currently has 10 associates. No more than 10new hires can be accommodated in any month because oflimited training facilities. No backorders are allowed, andovertime cannot exceed 25 percent of regular-time capacityon any month. There is no cost for unused overtime capac-ity. Regular-time wages are $1,500 per month, and overtimewages are 150 percent of regular-time wages. Undertime ispaid at the same rate as regular time. The hiring cost is $2,500per person, and the layoff cost is $2.000 per person.a. Prepare a staffing plan utilizing a level workforce strategy,minimizing undertime. The plan may call for a one-timeadjustment of the workforce before month 1.b. Using a chase strategy, prepare a plan that is consistent withthe constraint on hiring and minimizes use of overtime.c.…arrow_forward
- Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 55% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,600 loaves per month. Employees are paid $ 8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $ 850 and a per loaf ingredient cost of $ 0.35. Part 2 Current multifactor productivity for 640 work hours per month = enter your response here loaves/dollar (round…arrow_forwardCharles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 45%in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand.The bakery currently makes 1,800 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $650 and a per loaf ingredient cost of $0.40. After increasing the number of work hours to 928 per month,what is the multifactor productivity =? loaves/dollar (round your response to…arrow_forwardCharles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 45% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,500 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $550 and a per loaf ingredient cost of $0.40. Current multifactor productivity for 640 work hours per month = 0.239 loaves/dollar (round your response to three decimal places). After increasing the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY