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
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Textbook Question
Chapter 5, Problem 11P
Cooper River Glass Works (RGW) produces four different models of desk lamps as shown in Figure 5.15. The operations manager knows that total monthly demand exceeds the capacity available for production. Thus, she is interested in determining the product mix which will maximize profits. Each model’s price, routing, processing times, and material cost are provided in Figure 5.15. Demand next month is estimated to be 200 units of model Alpha, 250 units of model Bravo, 150 units of model Charlie, and 225 units of model Delta. CRGW operates only one 8-hour shift per day and is
- Which station is the bottleneck?
- Using the traditional method, which bases decisions solely on a product’s contribution to profits and overhead, what is the optimal product mix and what is the overall profitability?
- Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability?
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Students have asked these similar questions
LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming four quarters. Demand in each of the four quarters and production, overtime, and subcontracting capacities are
reported in the table below, in addition to the feasible production plan. The relevant costs are:
• Regular time production cost is $10/unit.
Overtime production cost is $14/unit.
Subcontracting cost is $18/unit
Inventory is held at a cost of $1/unit/quarter.
• Units may be backordered at a cost of $4/unit/quarter.
Production
Resource
Regular Time Q1
Overtime Q1
Subcontract Q1
Regular Time Q2
Overtime Q2
Subcontract Q2
Regular Time Q3
Overtime Q3
Subcontract Q3
Demand in Quarter
Demand in Quarter
Q2
0
20
0
550
Q1
550
230
0
0
0
0
40
40
0
860
250
470
0
40
0
1330
What is the inventory cost for the year?
What is the backorder cost for the year?
What is the total cost for the year?
Q3
0
0
0
0
0
30
510
160
0
700
What is the total overtime production cost for the year?
Capacity
550
250
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In the context of an Accident and Emergency Department, high demand variation can be addressed by having:
Select one alternative:
Yield Management.
Over staffing and preferential access.
Marketing.
Standby capacity and flexible staffing.
Demand management.
Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted
demand for the next four quarters. The number of available days of production and the anticipated demand are given below.
Employees
Production Rate
Production Cost
Backorder Cost
Overtime Cost
Overtime Limit
Demand
Q1
2,400
6,019,000
They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below.
30
70 units/employee/quarter
Q2
2,200
$1,000/unit
$200/unit/quarter
$1,500/unit
<= 25% of Reg. Production
Q3
1,700
Q4
1,800
Hire Cost
Fire Cost
Subcontracting Cost
Subcontracting Limit
Inventory Cost
Initial Inventory
$1,200/employee
$800/employee
$1,800/unit
400 units maximum
$100/unit/quarter
280 units
Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with
inventory and backorders as needed. What is the total cost of this…
Chapter 5 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 5 - Take a process that you encounter on a daily...Ch. 5 - Prob. 2DQCh. 5 - How could the efficiency of the redesigned process...Ch. 5 - Bill’s Barbershop has two barbers available to...Ch. 5 - Melissa’s Photo Studio offers both individual...Ch. 5 - Figure 5.11 details the process flow for two types...Ch. 5 - Prob. 4PCh. 5 - Super Fun Industries manufactures four top-selling...Ch. 5 - Prob. 6PCh. 5 - Yost-Perry Industries (YPI) manufactures a mix of...
Ch. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - A.J.’s Wildlife Emporium manufactures two unique...Ch. 5 - Cooper River Glass Works (RGW) produces four...Ch. 5 - Quick Stop Pharmacy is a small family-owned,...Ch. 5 - Use the longest work element rule to balance the...Ch. 5 - Johnson Cogs wants to set up a line to serve 60...Ch. 5 - Refer back to Problem 16. Suppose that in addition...Ch. 5 - To meet holiday demand, Penny’s Pie Shop...Ch. 5 - A paced assembly line has been devised to...Ch. 5 - Prob. 20PCh. 5 - Greg Davis, a business major at the University of...Ch. 5 - Prob. 1VCCh. 5 - Which boarding scenario among the different ones...Ch. 5 - How should Southwest evaluate the gate boarding...Ch. 5 - How will Southwest know that the bottleneck had...
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