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 24P
Revisit Problem 22 on the Bull Grin Company. Some cost and demand parameters have changed. Producing 1,000 pounds of supplement now costs $830 on regular time and $910 on overtime. No additional cost is incurred for unused regular-time, overtime, or subcontractor capacity. Overtime is limited to production of a total of 20,000 pounds per quarter. In addition, subcontractors can be hired at $1,000 per 1,000 pounds, but only 30,000 pounds per quarter can be produced this way.
The current level of inventory is 40,000 pounds, amid management wants to end the year at that level. Holding 1,000 pounds of feed supplement in inventory per quarter costs $100. The latest annual
Use the transportation method of production planning in POM for Windows to find the optimal production plan and calculate its cost, or use the spreadsheet approach to find a good production plan amid calculate its cost.
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A small textile company makes several types of sweat-ers. Demand is very seasonal, as shown by the follow-ing quarterly demand estimates. Demand is estimated interms of standard hours of production required.An hour of regular time costs the company $12. Employees are paid $18 per hour on overtime, andlabor can be subcontracted from the outside at $14per hour. A maximum of 1000 overtime hours isavailable in any month. A change in the regular level of production (increase or decrease) incurs a one-time cost of $5 per hour for adding or subtracting anhour of labor. It costs 2 percent per month to carry an hour of finished work in inventory. Materials and overhead costs in inventory are equal to the directlabor costs. At the beginning of the fall quarter,there are 5000 standard hours in inventory and theworkforce level is equivalent to 10,000 standardhours.a. Suppose management sets the level of regular work-ers for the year equal to the average demand andsubcontracts out the rest. What is…
The Woody Company manufactures slippers and sells them at $10 a pair. Variable
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As a logistics specialist, you are responsible for meeting customer demand. One of your customers places orders for you to supply four products by the end of October. You have limited capacity for raw material and other facilities. You are required to satisfy customer demand by manufacturing the products and/or buying from a supplier. After consulting with the production department, you obtained the following information.
Product A
Product B
Product C
Product D
Order quantity
2000
3500
1500
2500
Hours required on machine X per unit
2
4
5
3
Hours required on machine Y per unit
4
3
6
2
Raw material in kilos
5
1
4
6
Time needed for Packaging per unit
36 minutes
30 minutes
45 minutes
24 minutes
Available monthly hours per month: 8,000 on machine X, 6000 on machine Y, and 3,000 hours for packaging. Purchased items from your supplier are already packaged.
Available raw material per month: 5,000 kilos…
Chapter D Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
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