EBK OPERATIONS MANAGEMENT
13th Edition
ISBN: 8220103675987
Author: Stevenson
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 11, Problem 10P
Refer to Solved Problem 1. Prepare two additional aggregate plans. Call the one in the solved problem plan A. For plan B, hire one more worker at a cost of $200. Make up any shortfall using subcontracting at $8 per unit, with a maximum of 20 units per period (i.e., use subcontracting to reduce back orders when the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan to meet this demand given this additional information: A level production rate of 1000 units per month can be used. Backorders are allowed, and they are charged at the rate of $8 per unit per month. Inventory holding costs are $1 per unit per month based on maximum inventory. Determine the cost of this plan if regular time cost is $20 per unit, beginning inventory is zero, and initial backlog from previous plan is 100.
Month Forecast
1 800
2 100
3 1200
4 1100
5 1000
6 900
a. Prepare an aggregate plan.b. Prepare an aggregate plan if the management decided to switch to chase…
The planner at a company that makes garden tractors is about to prepare an aggregate production plan that will cover the next 6 months. She has collected the following information:
Month
Demand Forecast Above the available capacity through permanent workforce
1
1,000
2
1,000
3
2,000
4
3,000
5
4,000
6
1,000
Total:
12,000
Production per month = 20 units per worker
Initial inventory = 500 units
Desired ending inventory (at the end of month 6) = 0 units
Cost:
Hire cost = $500 per temporary worker
Inventory = $10 per tractor per month
Backorder = $150 per tractor per month
The optimum aggregate plan is:
Month
1
2
3
4
5
6
Total
Forecast Demand above regular capacity
1,000
1,000
2,000
3,000
4,000
1,000
12,000
# of temporary workers required
50
50
100
150
200
50
Temp. Workers hired
25
25
50
75
0
0
Temp. workers laid off
0…
Planners for a company that makes several models of skateboards are about to prepare the aggregate plan that will cover six periods. They have assembled the following information.
Period
1
2
3
4
5
6
Total
Forecast
200
200
300
400
500
200
1,800
Costs
Output
Regular time=$2 per skateboard
Overtime =$3 per skateboard
Subcontract =$6 per skateboard
Inventory =$1 per skateboard per period on average inventory
Back orders =$5 per skateboard per period
They now want to evaluate a plan that calls for a steady rate of regular-time output, mainly using inventory to absorb the uneven demand but allowing some backlog. Prepare an aggregate plan and determine its cost using the preceding information.
Chapter 11 Solutions
EBK OPERATIONS MANAGEMENT
Ch. 11 - What three levels of planning involve operations...Ch. 11 - What are the three phases of intermediate...Ch. 11 - Prob. 3DRQCh. 11 - Why is there a need for aggregate planning?Ch. 11 - What are the most common decision variables for...Ch. 11 - Prob. 6DRQCh. 11 - Briefly discuss the advantages and disadvantages...Ch. 11 - What are the primary advantages and limitations of...Ch. 11 - Briefly describe the planning techniques listed as...Ch. 11 - What are the inputs to master scheduling? What are...
Ch. 11 - Prob. 11DRQCh. 11 - What general trade-offs are involved in master...Ch. 11 - Who needs to interface with the master schedule...Ch. 11 - How has technology had an impact on master...Ch. 11 - Service operations often face more difficulty in...Ch. 11 - Name several behaviors related to aggregate...Ch. 11 - Compute the total cost for each aggregate plan...Ch. 11 - A manager would like to know the total cost of a...Ch. 11 - Determine the total cost for this plan given the...Ch. 11 - a. Given the following forecast and steady regular...Ch. 11 - Manager T. C. Downs of Plum Engines, a producer of...Ch. 11 - Manager Chris Channing of Fabric Mills, Inc., has...Ch. 11 - SummerFun. Inc., produces a variety of recreation...Ch. 11 - Nowjuice, Inc., produces Shakewell fruit juice. A...Ch. 11 - Wormwood, Ltd., produces a variety of furniture...Ch. 11 - Refer to Solved Problem 1. Prepare two additional...Ch. 11 - Refer to Solved Problem 1. Suppose another option...Ch. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Refer to Example 3. Suppose that regular-time...Ch. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prepare a master production schedule for...Ch. 11 - Update the master schedule shown in Figure 11.11...Ch. 11 - Prepare a master schedule like that shown in...Ch. 11 - Determine the available-to-promise (ATP)...Ch. 11 - Prepare a schedule like that shown in Figure 11.12...Ch. 11 - The objective is to choose the plan that has the...Ch. 11 - Prob. 2CQ
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Deb Bishop Health and Beauty Products has developed a new shamp0o and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. Click the icon to view the four-quarter forecast. Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Hire Layoff (Units) Quarter Forecast Production (Units) 1,500 1 1,400 Costs Previous quarter's output Beginning inventory 1,500 units O units $45 per unit $9 per unit for every unit held at the end of the quarter $40 per unit $70 per unit $35 per unit $20 extra per unit Stockout cost for backorders Inventory holding cost Quarter Forecast Hiring workers Layoff workers 1 1,400 2 1,000 Unit cost 3 1,600 Overtime 4 1,300…arrow_forwardDevelop a chase aggregate plan for Draper using apermanent workforce of 12 employees supplemented by overtime.All demand must be met each period.(a) Show what would happen if this plan were implemented.(b) Calculate the costs associated with this plan.(c) Evaluate the plan in terms of cost, customer service,operations, and human resources.arrow_forwardJAYB, manager of a Fabrication company, has the following aggregate demand requirements and other data for the upcoming four quarters. Table 5: Forecast and cost information [Jadual 5: Maklumat Ramalan dan kos] Quarter [Suku] Demand [Permintaan] Previous quarter's output [Keluaran suku sebelumnya] 1,500 units 1 1,400 Beginning inventory [Inventori awal] 200 units 2 1,000 Hiring workers [Pengambilan pekerja] RM6 per unit 3 1,500 Laying off workers [Pembuangan pekerja] RM11 per unit 4 1,300 Unit cost [Kos unit] RM30 per unit With the information given, JAYB wants you to calculate the total cost of using chase strategy by hiring and layoff workers.arrow_forward
- The opening backlog is 800 units. Forecast demand is as shown here. Calculate theweekly production for level production if the backlog is to be reduced to 100 units.arrow_forwardDefine "what-if analysis." How can a spreadsheet be used to plan capacity?arrow_forward1. Develop an aggregate plan for the following forecast Period 3 4 5 6 7 Total 1 2 8 Forecast 190 230 260 280 210 170 160 260 180 1,940 There are 20 workers who can produce 10 units per period at a cost of P6.00 per unit. There is no beginning invetory and the cost of carrying inventory is P5.00 per unit per period. Backlog cost is P10.00 per unit per period. Will the present workforce able to produce the forecast? b. What is the total cost of the plan? a.arrow_forward
- Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. Click the icon to view the four-quarter forecast. Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). More Info Hiring and Layoff Plan Hire Layoff Quarter Forecast Production (Units) (Units) 1,600 1 1,400 1400 0 200 2 1,000 1,000 0 400 3 1,600 1,600 600 0 4 1,200 ☑ More Info Previous quarter's output Beginning inventory Stockout cost for backorders Inventory holding cost Hiring workers Layoff workers Unit cost Overtime Subcontracting Costs 1,600 units $45 per unit O units $11 per unit for every unit held at the end of the quarter $50 per…arrow_forwardCapacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?arrow_forwardJose Martinez of El Paso had developed a polished stainless-steel tortilla machine that makes it a “showpiece” for display in Mexican restaurants. He needs to develop a 5-month aggregate plan. His forecast of capacity and demand follows: Month 1 2 3 4 5 Demand 150 160 130 200 210 Regular capacity 150 150 150 150 150 Overtime capacity 20 20 10 10 10 Subcontracting: 100 units available over the 5-month period (NOT 100 units each month) Beginning inventory: 0 units Ending inventory required at the last month (i.e. month 5): 20 units. Costs Regular-time cost per unit $100 Overtime cost per unit $125 Subcontracting cost per unit $135 Inventory holding cost per unit per month $3 Assume that backorders are not permitted. a) Find an aggregate production plan using the intuitive lowest cost approach. (i.e. Develop an aggregate plan using the transportation method). b) State the corresponding…arrow_forward
- Prepare a master production schedule with the information given as follows. The forecast for each week of am eight week schedule is 50 units. The MPS rule is to schedule production if the projected on hand inventory would be negative without it. Customer orders are as follows. Production lot size is 75, safety stock is 10 and no beginning on hand inventory. Calculate available to promise (ATP) quantity for each period. Week Customer Orders 1 52 2 35 3 20 4 12 Period Forecast Cust.Ord. SS Proj. OH MPS ATParrow_forwardDiscuss how aggregate plans is implemented in service organizations. Give examplearrow_forward2.15 The opening backlog is 900 units. Forecast demand is shown in the following. Calculate the weekly production for level production if the backlog is to be reduced to 200 units. Week 1 2 3 4 5 6 Total Forecast Demand 600 700 700 700 600 500 Planned Production Projected 900 Backlogarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
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
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY