Operations Management In The Supply Chain Decisions And Cases 7th
7th Edition
ISBN: 9781259718779
Author: Roger G Schroeder And Susan Meyer Goldstein
Publisher: McGraw Hill Education
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Chapter 11, Problem 10P
eXcel 10. The Ban go Toy Company produces several types of toys to seasonal demand. The
A regular employee can produce $10,000 worth of toys per month, and the company has so regular employees at the end of June. Regular-time employees are paid $3800 per month, including benefits. An employee on overtime produces at the same rate as on regular time but is paid at 150 percent of the regular pay. Up to 20 percent overtime can be used in anyone month. A worker can be hired for $1000, and it costs $2000 to layoff an employee. Inventory carrying costs are 30 percent per year. The company wishes to end the year with so employees. Beginning inventory of toys is $900,000.
- a. Calculate the cost of a chase strategy.
- b. Calculate the cost of a level strategy.
- c. Using the Excel template, simulate several other strategies.
- d. Determine the effect on the chase strategy, in part a, of changing the hiring cost to $ 1500, $2000, and $2500. What do these changes suggest the relationship is between hiring cost and total cost?
- e. Use the Excel template to study the effect of demand changes on the total cost of the chase strategy. Assume various percentage increases and decreases in demand (110 percent, 120 percent, 210 percent, 220 percent, etc.).
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please help me with Question 3 thanks!
Demand forecasts for 2021 are as follows:
Month
Demand
Jan
140,000
Feb
78,900
Mar
85,800
Apr
89,100
May
123,600
Jun
136,350
Jul
120,450
Aug
106,950
Sep
121,950
Oct
135,750
Nov
87,000
Dec
93,300
Each worker can produce 900 products per month and is paid $1500 per month. Assume that at the end of last year, the company has 100 employees working on the production line. Hiring and layoff (firing) decisions are made at the beginning of each month, and associated costs are charged at that time. It costs the company $400 to hire and $800 to lay off a worker.
The company incurs holding cost for the amount of ending inventory in each month, and incurs backorder cost at the end of each month for any unfilled orders. The company incurs $2 per month for holding one unit in inventory and $4 per unit backorder.
1 Prepare a level aggregate plan. Under this level aggregate plan, how…
Given the following forecast and steady regular output of 550 every month, what total cost would result if overtime is limited to a maximum of 40 units a month, and subcontracting is limited to a maximum of 10 units a month? Unit costs are:
Regular output $20
Overtime $30
Subcontract $25
Average Inventory $10
Backlog $18
Month
1 2 3 4 5
6
Forecast
540 540 570 590 650
680
A Pizza Company has a demand forecast for the next 12 months that is shown in Table 1
The current workforce of 100 staff can produce 1500 cases of pizzas per month.
(a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan?
(b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10 per cent greater than normal working hours?
Table 1 demand forecast
Month Demand (cases per month)
January 600
February 800
March 1000
April 1500
May 2000
June 1700
July…
Chapter 11 Solutions
Operations Management In The Supply Chain Decisions And Cases 7th
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - A school district has forecast student enrollment...Ch. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - SOP or aggregate planning sometimes is confused...Ch. 11 - The XYZ Company manufactures a seasonal product....Ch. 11 - Prob. 8DQCh. 11 - Every firm has multiple objectives such as good...Ch. 11 - Prob. 10DQ
Ch. 11 - Prob. 11DQCh. 11 - Suppose we are considering the question of how...Ch. 11 - The Ace Steel Mill estimates the demand for steel...Ch. 11 - A barbershop has the following demand for haircuts...Ch. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - eXcel The Chewy Candy Company would like to...Ch. 11 - A company produces to a seasonal demand, with the...Ch. 11 - Prob. 8PCh. 11 - Question: 9. The Restwell Motel in Orlando,...Ch. 11 - eXcel 10. The Ban go Toy Company produces several...Ch. 11 - A small textile company makes several types of...Ch. 11 - Valley View Hospital faces somewhat seasonal...
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