14.1. Care Alliance (CA), a manufacturer of emergency care kits for disaster relief, has received the annual disaster readiness plans from its major constituents and now must develop an operations plan to set production, labor, and inventory levels of its basic emergency products for the next four quarters. Demand for the kits, given below, varies with seasonal weather, political climate, and economic conditions. The average worker at CA can produce 10,000 kits a quarter at a cost of $9 per kit. The cost of holding inventory is $2 per kit per quarter. Due to the medical nature of many of its products and concern for quality, hiring and firing costs are $700 per worker. CA currently employs 20 workers. Given the demand forecast below, develop a quarterly operations production plan for CA using (a) chase demand and (b) level production: Quarter Demand 1 150,000 2 250,000 3 350,000 4 250,00
14.1. Care Alliance (CA), a manufacturer of emergency care kits for disaster relief, has received the annual disaster readiness plans from its major constituents and now must develop an operations plan to set production, labor, and inventory levels of its basic emergency products for the next four quarters. Demand for the kits, given below, varies with seasonal weather, political climate, and economic conditions. The average worker at CA can produce 10,000 kits a quarter at a cost of $9 per kit. The cost of holding inventory is $2 per kit per quarter. Due to the medical nature of many of its products and concern for quality, hiring and firing costs are $700 per worker. CA currently employs 20 workers. Given the demand forecast below, develop a quarterly operations production plan for CA using (a) chase demand and (b) level production: Quarter Demand 1 150,000 2 250,000 3 350,000 4 250,00
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...
Related questions
Question
14.1. Care Alliance (CA), a manufacturer of emergency care kits for
disaster relief, has received the annual disaster readiness plans from
its major constituents and now must develop an operations plan to set
production, labor, and inventory levels of its basic emergency products
for the next four quarters. Demand for the kits, given below, varies with
seasonal weather, political climate, and economic conditions. The average worker at CA can produce 10,000 kits a quarter at a cost of $9 per
kit. The cost of holding inventory is $2 per kit per quarter. Due to the
medical nature of many of its products and concern for quality, hiring
and firing costs are $700 per worker. CA currently employs 20 workers.
Given the demand forecast below, develop a quarterly operations production plan for CA using (a) chase demand and (b) level production:
Quarter Demand
1 150,000
2 250,000
3 350,000
4 250,00
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 6 images
Recommended textbooks for you
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing