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Concept explainers
a
Interpretation: Plan for employment which has mixed strategy and has the low cost is to be proposed.
Concept Introduction:
Mixed strategy plans are made in which both permanent and temporary employees are enrolled. This is one to minimize the overall cost of hiring.
b
Interpretation: Advantages and disadvantages of having both permanent and temporary employees are to be discussed.
Concept Introduction:
Permanent employees are those who work for full time, have governmental rights for their protection and work till retirement.
Temporary employees are those who are hired for some specific project or task and leaves the firm when work is done.
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Chapter 10 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
- Charles Lackey operates a bakery in Idaho Falls,Idaho. Because of its excellent product and excellent location,demand has increased by 25% in the last year. On far too manyoccasions, customers have not been able to purchase the bread oftheir choice. Because of the size of the store, no new ovens can beadded. At a staff meeting, one employee suggested ways to loadthe ovens differently so that more loaves of bread can be baked atone time. This new process will require that the ovens be loadedby hand, requiring additional manpower. This is the only thingto be changed. If the bakery makes 1,500 loaves per month witha labor productivity of 2.344 loaves per labor-hour, how manyworkers will Lackey need to add? (Hint: Each worker works160 hours per month.)arrow_forward1. Nasrin, Rashed and Tahmid run a Chocolate manufacturing company. Their productionruns 30-hour per week and they pay $6 per hour to their labors. Material cost is $3.5 per lbs.Machine productivity is 2.5 times weekly labor cost. Overhead is $300 per week. The weeklyproductivity figures are given below:Weeks Output (Units) Labors Material (lbs)1 1400 8 362 1500 9 343 1250 6 334 1300 7 35 a) Compute multi-factor productivity of machine and material for each of the monthsshown for their Chocolate manufacturing firm.b) Compute multi-factor productivity of Labor and Overhead for each of the months shownfor their Chocolate manufacturing firm.c) Compute total productivity measure for each of the months shown for their Chocolatemanufacturing firm.d) What do the productivity figures suggest? undefinedarrow_forwardA local firm manufactures children’s toys. The projected demand over the next fourmonths for one particular model of toy robot isForecasted DemandMonth Workdays (in aggregate units)July 23 3,825August 16 7,245September 20 2,770October 22 4,440 Assume that a normal workday is eight hours. Hiring costs are $350 per workerand firing costs (including severance pay) are $850 per worker. Holding costsare $4.00 per aggregate unit held per month. Assume that it requires an averageof 1 hour and 40 minutes for one worker to assemble one toy. Shortages are notpermitted. Assume that the ending inventory for June was 600 of these toys and themanager wishes to have at least 800 units on hand at the end of October. Assume thatthe current workforce level is 35 workers. Find the optimal plan by formulating as alinear programarrow_forward
- 4.) After 10 years of production, the chemical manufacturing plant has become very successful. Because of its success, a great demand for products came as many consumers wanted the company to sell them their products. To meet the demand, three alternatives were considered. Work overtime to meet demands. Annual overtime expenses are $500,000. Expand the plant to accommodate more production. Fixed annual expenses are $2,500,000. Make a contract with another company to produce additional products at a rate of $1,000,000. The cost of manufacturing products from the three alternatives are $3500, $3000 and $3250 per unit respectively. The plant sells every unit made regardless of how they were made at $15,000 per unit. The expected demand for the product is 150 units with a probability of 50% 250 units with a probability of 35% 350 units with a probability of 7.5% 400 units with a probability of 5% 500 units with a probability of 2.5%arrow_forwardMajor Ltd is a company that produces household goods in various departments. It needs to assess whether the hourly recovery tariff has been calculated correctly.The following information is provided for Martina who is an employee of Major Ltd:She works from Monday – Friday (8 hours per day for 5 days). The rate per hour in this company is R75. Holiday bonus equals to 10% of yearly gross salary. The employer makes the following contributions: Pension fund = R1000 per week Medical aid = R400 per week Other contributions = 5 % of yearly gross salaryHoliday leave is 3 weeks annually. The company is closed for 10 public holidays and idle time is 5%.Required:Calculate the hourly recovery tariff. Assume that there are 52 weeks in a year. Note: round off all unit costs to TWO decimal places. Show ALL calculations.arrow_forwardBarry’s Brakes is looking to hire workers to assemble the brake assemblies it produces. Barry has estimated total output of these workers can produce, see the table below. Barry will sell each brake assembly for $200 but the parts cost $160 for each assembly. Number of Workers Total Output (per day) 1 15 2 28 3 38 4 43 The hourly wage for factory workers is $275 per day. How many workers should the factory manager hire ?arrow_forward
- Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: Labor: 400 hours per day @ $12.50 per hour 20,000 pounds per day @ $1.00 per pound $5,000 per day $10,000 per day Raw Material: Energy: Capital: Labor productivity per labor hour for these tires = tires/labor hour (round your response to two decimal places).arrow_forwardA company evaluate its hiring cost is RM150 per worker and layoff cost is RM200 per worker. Currently the company has 20 workers and based on forecast demand, the actual workers required to meet January demand is 25 workers. Calculate the hiring cost or layoff cost for that month. * O RM750 O RM350 O RM250 O RM1,000arrow_forwardManufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy. b.) Compute the costs of the Level Strategy c.) Compare the costs of the two strategies. Which one is superior?arrow_forward
- Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy.arrow_forwardTax Prep Advisers, Inc., has forecasted the following staffingrequirements for tax preparation associates over the next12 months. Management would like three alternative staffingplans to be developed. The company currently has 10 associates. No more than 10new hires can be accommodated in any month because oflimited training facilities. No backorders are allowed, andovertime cannot exceed 25 percent of regular-time capacityon any month. There is no cost for unused overtime capac-ity. Regular-time wages are $1,500 per month, and overtimewages are 150 percent of regular-time wages. Undertime ispaid at the same rate as regular time. The hiring cost is $2,500per person, and the layoff cost is $2.000 per person.a. Prepare a staffing plan utilizing a level workforce strategy,minimizing undertime. The plan may call for a one-timeadjustment of the workforce before month 1.b. Using a chase strategy, prepare a plan that is consistent withthe constraint on hiring and minimizes use of overtime.c.…arrow_forwardLillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: Labor: 400 hours per day @ $12.00 per hour Raw Material: 20,000 pounds per day @ $1.00 per pound Energy: $5,250 per day Capital: $10,000 per day a) Labor productivity per labor hour for these tires = 2.502.50 tires/labor hour (round your response to two decimal places). b) Multifactor productivity for these tires = 0.02500.0250 tires/dollar (round your response to four decimal places). c) The percent change in multifactor productivity if Fok can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs = nothing% (enter your response as a percentage rounded to two decimal places). Note: calculate the new multifactor productivity to four…arrow_forward
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