OPERATIONS MANAGEMENT LOOSELEAF W/ CONN
14th Edition
ISBN: 9781264343898
Author: Stevenson
Publisher: MCG
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Chapter 11, Problem 1P
Compute the total cost for each aggregate plan using these unit costs:
Regular output = $40
Overtime = $50
Subcontract = $60
Average Balance Inventory = $10
a. 
b. 
c. (Refer to part b) After complaints from some workers about working overtime every month during the first half of the year, the manager is now considering adding some temporary workers for the second half of the year, which would increase regular output to a steady 350 units a month, not using any overtime, and using subcontracting to make up needed output. Determine the total cost of that plan.
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The president of HiU Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 monthsas follows: Her operat ions manager is considering a new pla n, whichbegins in January with 200 uni ts on hand . Stockout cost of lostsales is SlOO per unit. Inventory holding cost is $20 per unit permonth. Ignore any idle-time costs. The plan is called plan A.Plan A: Vary the workforce level to execute a strategy that producesthe quantity demanded in the prior month. The Decemberdemand and rate of production are both I ,600 units per month. Thecost of hiring additional workers is $5,000 per I 00 uruts. The cost oflaying oiTworkers is $7,500 per 100 units. Evaluate this plan.
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months
as follows:
alculator
DEPREFERESSESES
Cara be
Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand.
Stockout cost of lost sales is $65 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs
Evaluate the following plan.
This exercise contains only Plan E.
Plan E: Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of
the demand. Subcontract cost is $75 per unit.
mummill
M
Pla
$100433443
January
February
March
April
MESS
Month
0 December
1 January
2 February
3 March
4 April
5 May
6 June
7 July
8 August
Ask my instructor
1,400
1,600
1,800
1,800
Demand
1.400
1,600
1,800
1,800
2,200
2,100
1,800
1.400
May
June
July
August
Production
(Units)
1,600
1,600
1,600
1,600
1,600
1,600
1,600
1,600
2,200
2.100
1.800
1,400
S
Plan E
Subcontract…
This company has the following aggregate demand requirements and other data for the upcoming four quarters.
Quarter
Demand
Previous quarter's output
1500 units
1
1400
Beginning inventory
200 units
2
1000
Stockout cost
$50 per unit
3
1500
Inventory holding cost
$8 per unit at end of quarter
4
1300
Hiring workers
$5 per unit
Laying off workers
$10 per unit
Unit cost
$30 per unit
Overtime
$10 extra per unit
Which of the following production plans is better: Plan 1—chase demand by hiring and layoffs; or
Plan 2—produce at a constant rate of 1200 and obtain the remainder from overtime?
Finish the calculation.
Plan 1.
Demand
Regular Time Capacity
Regular Time Production
Hire
Fire
Initial Inventory
Period 1
1,400
1200
Period 2
1,000
Period 3
1,500
Period 4
1,300…
Chapter 11 Solutions
OPERATIONS MANAGEMENT LOOSELEAF W/ CONN
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
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