Operations Management
14th Edition
ISBN: 9781260238891
Author: Stevenson
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 11, Problem 16P
Refer to Example 3. Suppose that regular-time capacity will be reduced to 440 units in period 3 to accommodate a companywide safety inspection of equipment. What will the additional cost of the optimal plan be as compared to the one shown in Example 3? Assume all costs and quantities are the same as given in Example 3 except for the regular-time output in period 3. Solve by modifying Table 11.6.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
QuestionByron Sports is a manufacturer of sportswear. It produces all of its products in one department using a process costing system.The information for the current month is as follows:Beginning work in process (30% complete as to conversion cost) 12,000 unitsUnits started 90,000 unitsUnits completed and transferred out ?Ending work in process (70% complete as to conversion) 8,000 unitsCosts:Beginning work-in-process direct materials $28,800Beginning work-in-process conversion $5,040Direct materials added during month $216,000Conversion costs incurred during the month $139,200Direct materials are added at the beginning of the process. Conversion costs are incurred uniformlythroughout the production process. Costing is handled on a FIFO basis
Required:a. Prepare a production cost worksheet using 5 steps approach.b. Under what conditions would a process costing system be more appropriate than a job order costing system? Explain.
Tuff-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component combinations. Identical bicycles are produced in lots of 110. The projected demand, lot size, and time standards are shown in the following table:
Item
Touring
Mountain
Demand forecast
4,000
units/year
12,000
units/year
Lot size
100
units
110
units
Standard processing time
0.25
hour/unit
0.50
hour/unit
Standard setup time
2 hours/lot
3 hours/lot
The shop currently works 8 hours a day, 5 days a week, 52 weeks a year. It operates five workstations, each producing one bicycle in the time shown in the table. The shop maintains a 15 percent capacity cushion. How many workstations will be required next year to meet expected demand without using overtime and without decreasing the firm's current capacity cushion?
The number of workstations required next year is ?(Enter your response rounded up to the next whole number.)
Cara Ryder manages a ski school in a large resort and is try-ing to develop a schedule for instructors. The instructorsreceive little salary and work just enough to earn room andboard. They receive free skiing and spend most of their freetime tackling the resort’s notorious double black-diamondslopes. Hence, the instructors work only 4 days a week. Oneof the lesson packages offered at the resort is a 4-day begin-ner package. Ryder likes to keep the same instructor with agroup over the 4-day period, so she schedules the instructorsfor 4 consecutive days and then 3 days off. Ryder uses years ofexperience with demand forecasts provided by managementto formulate her instructor requirements for the upcomingmonth.a. Determine how many instructors Ryder needs to employ.Give preference to Saturday and Sunday off. (Hint: Lookfor the group of 3 days with the lowest requirements.)b. Specify the work schedule for each employee. How muchslack does your schedule generate for each day?
Chapter 11 Solutions
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
- Problem 4 A bakery needs to evaluate two oven solutions for its renovations. It is currently considering two possible ovens, a small one for $1,250 and a large one for $2,500. Its operating requirements are as follows Item Small Oven Large Oven 50 Batch size (units) Processing time (min/unit) Cleaning time (min) Heating time (min) 125 0.5 20 30 10 15 According to operating instructions, both the small and large ovens must be cleaned after each batch and properly heated before each batch can be processed. The bakery estimates the demand for the next few years to remain steady at 300,000 units per year. Currently, the company operates 8 hours a day (with no overtime allowed) and 300 days a year. a. Calculate the daily production capacity of each oven (small and large). b. How many of the small ovens are needed to meet the production demand? What is the total cost? c. How many of the large ovens are needed to meet the production demand? What is the total cost? d. Calculate the rate of…arrow_forwardA 30,000-seat college football stadium is used 20 times for games, concerts, and graduation ceremonies in a year. Each event averages 6 hours and assumes the stadium is full for each event. The stadium is available 365 days a year from 6 am to midnight. Find the stadium (seat) utilization.arrow_forwardProctoring Enabled: Chapter 12 Computer Simulati. O Help Save & Exit Submit Saved Given this frequency distribution, what demand values would be associated with the following random numbers? (Do not round intermediate calculations.) Demand Frequency 29 1 23 2. 19 3. 29 Random Number Simulated Demand 0.3 0.5 0.9 Mc Graw Hill < Prev 2 of 5 ASUSarrow_forward
- In year 1, if the aggregate demand of a bronze manufacturing operation is 450000 and the corresponding capacity is 150000 per machine (there are 3 machines in total with 2 operators per machine), what are the machine requirements and the corresponding labor requirements in year 1?arrow_forwardUse the Wagner–Whitin and Silver–Meal methods to find production schedules for the following dynamic lot-size problem: K $30, h $1, d1 40, d2 60, d3 10, d4 70, d5 20.arrow_forwardAn airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 80 customers for this flight segment in three years, what capacity requirement should be planned? Assume that management deems that a capacity cushion of 20 percent is appropriate. what the needed capacity requirement is ----------- customers per day. (Enter your response rounded up to the next whole number.)arrow_forward
- A recruiter for a job placement agency is considering whether to pay $50,000 per year to lease a new recruiting facility in a prime location in Washington D. C. He estimates it will cost $50 per recruit to process the paperwork at this new location. He receives a $75 commission for each new recruit he processes. Part A - If the office space at this new location has design and effective capacities of 10,000 and 8,000 recruits processed annually, respectively, and 6,000 recruits will be processed per year, what will be the utilization of the office space?Part B - If his office space at this new location has design and effective capacities of 10,000 and 8,000 recruits processed annually, respectively, and he plans to be 90% efficient in his use of this space, how many recruits does he plan to process per year?arrow_forwardA manufacturing process has 12 workers and 6 stations. The process iscompleted in the order given below. Where there are multiple workers within a station,each worker works independently on his/her own unit. Assume inventory buffers areallowed between each station.Station Staffing Processing time (hoursper unit per worker)A 2 2.20B 1 1.25C 3 2.00D 2 2.60E 3 3.00F 1 0.75What is the maximum number of units per hour that can be produced? Assume they startthe day with inventory at each station to work onarrow_forwardSupertronics, Inc., would like to know how the firm’s profit-ability is altered by product mix. Currently, product mix isdetermined by giving priority to the product with the highestper-unit contribution margin (defined as the difference be-tween price and material cost). Details on the Supertronicsproduct line, including processing time at each workstation,follow:a. Assume that Supertronics has 5,500 minutes of capacityavailable at each workstation each week. Develop a linearprogram to define the production mix that maximizescontribution margin.b. Solve your formulation using a computer package such asPOM for Windows. c. Given your solution for part (b), which machine is thebottleneck?d. How would your formulation and solution in part(b) change if 50 units of each product were alreadycommitted to customers and thereby had to beproduced?arrow_forward
- The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturing requirements (in thousands of gallons) for the next four quarters are 80, 50, 80, and 130, respectively. A level workforce is desired, relying only on anticipation inventory as a supply option. Stockouts and backorders are to be avoided, as are overtime and undertime.a. Determine the quarterly production rate required to meet total demand for the year, and minimize the anticipation inventory that would be left over at the end of the year. Beginning inventory is zero.b. Specify the anticipation inventory that will be produced.c. Suppose that the requirements for the next four quarters are revised to 80, 130, 50, and 80, respectively. If total demand is the same, what level of production rate is needed now, using the same strategy as part (a)?arrow_forwardThe school cafeteria can make pizza for approximately $0.30 per slice. The cost of the kitchen use and cafeteria staff runs about $200 per day. The Pizza Den nearby will deliver whole pizzas for $9.00 each. The cafeteria staff cuts the pizza into eight (8) pieces and serves them in the usual cafeteria line. With no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. Should the school cafeteria make or buy pizza? Calculations are needed to justify the answer. Excel spreadsheet is optional.arrow_forwardThe school cafeteria can make pizza for approximately $0.30 per slice. The cost of the kitchen use and cafeteria staff runs about $200 per day. The Pizza Den nearby will deliver whole pizzas for $9.00 each. The cafeteria staff cuts the pizza into eight (8) pieces and serves them in the usual cafeteria line. With no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. Should the school cafeteria make or buy its pizzas? Calculations are needed to justify the answer.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY