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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Chapter D, Problem 21P
Summary Introduction
Interpretation: Assuming the given constraints, the optimal production plan, along with the workforce staffing plan is to be proposed.
Concept Introduction: The Company produces shovels for industrial and home-use.
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Capacity planning requires a demand forecast for an extended period of time into the future. What concerns would you have regarding an extended forecast as a capacity planner?
Mr. Zulhakim being assigned by his manager to develop their production planning for Year
2022. Table 3 shows the information that he able to obtain from the sales & marketing
department. After doing the planning, Mr Zulhakim need to present it to his manager. Factory
developed a demand forecast based on Table 3 with supplier charges about RM300.00 per unit.
The demand forecast is stated as week but, in this planning, it is being considered as an annual
quantity for the operation. Ordering cost is RM150.00. Annual holding cost is 10 percent of a
purchased price.
(b)
Develop the ATP of this plan. Initial inventory on hand is 50 units obtained from Year
2021. Lot size for MPS can be obtained by using EOQ model.
Table 3: Demand and Customer confirmed order quantity
8 9 10
2 3
10 40 10 00 30 20 40 20
30
Period (Week)
1
4
5 6
7
Forecast (units)
Customer orders (booked) (unit)
20
8.
2
a) For an upcoming red carpet evening, a company is selling tickets at $60 per person at a large theatre which has a capacity of 10,000 people. Each attendant is expected to buy $12 of food and merchandise at the film evening. The cost of providing the food and merchandise is estimated to be $5 per person. All other ancillary services will be provided by the theatre. Initial analysis indicates that the ancillary cost of providing food and merchandise, as well as the staff needed to handle ticket sales, may be described as a semi-variable cost. Data on these costs and tickets sold from three similar events held at the venue have been collected and are tabulated below:
Tickets Sold
Cost ($)
2100
6640
3824
11284
4650
13525
Use the high-low method to estimate the total cost function relating to these ancillary costs.
b) The company will be renting the theatre which will host the upcoming red carpet evening. The budgeted fixed cost of both renting the theatre and paying the…
Chapter D Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
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