Concept explainers
A
Interpretation: All the decision variables and a linear program for the given production planning data should be determined and formulated.
Concept Introduction: The Company produces feed supplement for animal foods. Production of 1000 pounds costs $810 in regular time, and costs $900 in overtime.
B
Interpretation: A solution to the given data and information using a computer package like POM for Windows should be provided.
Concept Introduction: The Company produces feed supplement for animal foods. Production of 1000 pounds costs $810 in regular time, and costs $900 in overtime.
C
Interpretation: Changes in the cost minimizing solution should be determined if a proposed alteration is done in the provided data.
Concept Introduction: The Company produces feed supplement for animal foods. Production of 1000 pounds costs $810 in regular time, and costs $900 in overtime.
D
Interpretation: The increase in the cost of production plan of the company should be determined.
Concept Introduction: The Company produces feed supplement for animal foods. Production of 1000 pounds costs $810 in regular time, and costs $900 in overtime.
Want to see the full answer?
Check out a sample textbook solutionChapter D Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
- We run a fresh produce stand at farmer’s market where we sell avocados and artichokes. Each morning, a supplier drops off bags of these products. We can buy up to 200 bags of avocados and up to 175 bags of artichokes each morning. We resell the bags to customers throughout the day. The contribution margin of avocados is $15/bag; the contribution margin of artichokes is $20/bag. We sell at least twice as many bags of avocados as we do artichokes. We have found that our normal daily demand is between 140 and 350 total bags what are the constaintsarrow_forwardAn international footwear company is dedicated to produce multiple models of shoes depending on the season, but only one of these models is produced all year round, which is Chuck Taylor All-Star high top in black, a shoe whose demand has not changed in recent years. Daily in its factory in China, 20,704 pairs are produced, therefore, 496,896 pairs are produced per month, of which only 495,765 pairs are conforming products. In the month of August 2021 they worked 24 days, with shifts of 8 hours a day, with 45 minutes break for lunch, in the mornings they must warm up machines for 15 minutes before starting production; they work in this way from Monday to Saturday, when they reach 495,000 pairs they make a production review that is carried to the moment; this waiting time takes them about 1 hour and a half. Determine the total number of parts produced per hour during the month of October 2021.arrow_forwardA chemical plant produces sodium bisulfate in 140 kg bags. Demand for this product is 35 tonnes per day. The capacity for producing this product is 50 tonnes per day. Setup cost is $500, and storage and handling costs are $240 per tonne per year. The company operates 210 days a year. (Note: 1 tonne = 1,000 kg). a. What is the optimal number of bags per production run? (Round your intermediate calculations to 2 decimal places and the final answer to the nearest whole number.) Optimal number of bags 2958 b. What would the average inventory level be for this lot size? (Round your intermediate calculations to 2 decimal places and the final answer to the nearest whole number.) Average inventory bags c. Determine the approximate length of a production run, in days. (Round the intermediate calculations and final answer to 2 decimal places.) Run length days d. About how many production runs per year would there be? (Round your intermediate calculations to 2 decimal places and the final answer…arrow_forward
- An Electric Motor manufacturer has an annual production of 10,000 units. The electric motor ends are subcontracted to an aluminum-die casting company, in batch quantities of 2,500 units. The motor manufacturer purchases the die-cast tooling for $ 80,000, which requires refurbishing and adjustment in the Tool Room requiring 40 (PHC), prior to every Machine setup. The die-cast machine set up requires four hours, and the production cycle time is 0.85 minutes. The special aluminum alloy costs $1.20 per pound, and the Productive Hourly Cost (PHC) is $120 per hour Question a. Estimate the batch and unit cost. What is the percentage contribution of PHC, Tooling Cost and Material Cost to the Unit Cost ? Question b. Estimate the annual cost savings if the Electric Motor Manufacturer orders the motor ends in batches of 5000 units.arrow_forwardWestern Chassis produces high-quality polished steel and aluminum sheeting and two lines ofindustrial chassis for the rack mounting of Internet routers, modems, and other telecommunicationsequipment. The contribution margin (contribution toward profit) for steel sheeting is $0.40 per poundand for aluminum sheeting is $0.60 per pound. Western earns $12 contribution on the sale of aStandard chassis rack and $15 contribution on a Deluxe chassis rack. During the next productioncycle, Western can buy and use up to 25,800 pounds of raw unfinished steel either in sheeting or inchassis. Similarly, 20,400 pounds of aluminum are available. One standard chassis rack requires 16pounds of steel and 8 pounds of aluminum. A Deluxe chassis rack requires 12 pounds of each metal.The output of metal sheeting is restricted only by the capacity of the polisher. For the next productioncycle, the polisher can handle any mix of the two metals up to 4,000 pounds of metal sheeting. Chassismanufacture can be…arrow_forwardGlams Touch is a budding cosmetics family business in Sekondi. The owners, Baaba Benson and Bernard Benson, must ensure that they judiciously use the store space available. They have never kept detailed inventory or sales records. They immediately place new items on the shelves as soon as shipment of goods arrives.Invoices from suppliers are only kept for tax purposes. During sales, they record the items numbers and the total amount received at the cash register. The owners use their own judgment in identifying items that need to be reordered. Baaba and Bernard rely on their own judgment in deciding the cosmetics that need to be restocked.Analyse the business implication of this situation. In your view, how could information systems be utilized to assist the Bensons manage Glams Touch. Enumerate some data that should be captured by the systems and what information outputs are to be churned out from the system.arrow_forward
- The Delta company uses three raw materials to make cakes. Delta is trying to reduce warehousing costs and establishes three policies to that end: i) The annual number of orders for all products must be at least 20 per contractual terms with transportation providers. ii) The average inventory in units must be a maximum of 1800. iii) Because the raw material is perishable, there can never be more than 2000 units in inventory of raw material 1. Raw material 2 has a maximum allowed of 1200 units and the raw material 3 can store maximum 400 units. The following table shows the product information: Materia Demanda Costos por unidad Costo por prima (u/año) ordenar ($) 2200 2 300 2 500 4 650 3 3000 10 100 Consider an interest rate of 10% per year. A) Formulate the problem as a mathematical programming model that minimizes the total annual cost. b) Represent the problem in a single equation including the constraints in terms of lambda c) Find the optimized batch sizes for the company's raw…arrow_forwardAn airline’s load factor refers to Multiple Choice the percentage of empty seats on a plane compared to its total capacity. the total of all paid seats plus all luggage overcharges and all purchased beverages, meals, and other amenities or additional services, per flight. the percentage of paying customer seats flown one mile plus frequent flyer redemption seats flown one mile. the percentage of available seats flown one mile occupied by a paying customer. the percentage of seats that are overbooked on any given flight to prevent profit shortfalls for “no shows.”arrow_forwardMotorama TV estimates the annual demand for its TVsis (and will be in the future) normally distributed, with amean of 6,000 and standard deviation of 2,000. Motorama must determine how much production capacity it shouldhave. The cost of building enough production capacity tomake 1,000 sets per year is $1,000,000 (equivalent in presentvalue terms to a cost of $100,000 per year forever). Exclusiveof the cost of building capacity, each set sold contributes$250 to profits. How much production capacity shouldMotorama have?arrow_forward
- Jack Ltd is a market leader in the manufacture of apple juice. They operate areorder level system of inventory management, and the following information isavailable for green apples:Average usage 800 per dayMinimum usage 540 per dayMaximum usage 1260 per dayLead time for replenishment 16-20 dayReorder quantity 19,500 applesRequired:ii Calculate the maximum level of inventoryarrow_forwardEmarpy Appliance is a company that produces all kinds of major appliances. Bud Banis, the presidentof Emarpy, is concerned about the production policy for thecompany’s best-selling refrigerator. The annual demand hasbeen about 8,000 units each year, and this demand has beenconstant throughout the year. The production capacity is 200units per day. Each time production starts, it costs the company $120 to move materials into place, reset the assemblyline, and clean the equipment. The holding cost of a refrigerator is $50 per year. The current production plan calls for 400refrigerators to be produced in each production run. Assumethere are 250 working days per year.a) What is the daily demand of this product?b) If the company were to continue to produce 400 units eachtime production starts, how many days would productioncontinue?c) Under the current policy, how many production runs peryear would be required? What would the annual setup costbe?d) If the current policy continues, how many…arrow_forwardYour firm uses a periodic review system for all SKUS classified, using ABC analysis, as B or C items. Further, it uses a continuous review system for all SKUS classified as A items. The demand for a specific SKU, currently classified as an A item, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year; the item's current characteristics are: Demand (D) = 15,080 units/year Ordering cost (S) = $125.00/order Holding cost (H) = $3.00/unit/year Lead time (L) = 5 weeks Cycle service level = 95 percent Demand is normally distributed, with a standard deviation of weekly demand of 64 units. -Calculate the item's EOQ. - Use the EOQ to define the parameters of an appropriate continuous review and periodie review system for this item. -Which system requires more safety stock and by how much? -How do you think each system can affect your procurement procedures/methods?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,