OPERATIONS MANAGEMENT CUSTOM 12E >C<
18th Edition
ISBN: 9781323889503
Author: HEIZER
Publisher: PEARSON C
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Chapter 13, Problem 13DQ
Summary Introduction
To determine: Thelimitations of using a transportation method for aggregate planning
Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.
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Explain what are the major limitations of using the transportation method for aggregate planning?
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Wholesale Building Materials (WBM) plans to enter the Florida market next fiscal year. The company has already decided on a product line to introduce to the FL market. WBM’s plan is to serve FL from a DC located in Houston, TX. As an initial market entrance strategy, WBM has signed a vendor-managed inventory (VMI) contract with a company in FL. According to the contract, WBM needs to bring 7% of the total demand during each inventory replenishment cycle (i.e., shipment size is 7% of the total demand) in addition, an amount equal to the replenishment quantity will be kept as the average inventory in Houston against contingencies. The expected demand in the market will be a function of the time responsiveness of WBM. The demand function is defined as follows:
Where D is demand per year in terms of normalized units and T (in days) is the response time for a certain mode of transportation. The cost of each product is $100 in TX, the inventory holding rate per unit per year is 24%,…
Chapter 13 Solutions
OPERATIONS MANAGEMENT CUSTOM 12E >C<
Ch. 13 - Make the case for, and then against, this pricing...Ch. 13 - Prob. 1DQCh. 13 - Why are SOP teams typically cross-functional?Ch. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQ
Ch. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - The president of Hill Enterprises, Terri Hill,...Ch. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Consuelo Chua, Inc., is a disk drive manufacturer...Ch. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 11PCh. 13 - Southeast Soda Pop, Inc., has a new fruit drink...Ch. 13 - Ram Roys firm has developed the following supply,...Ch. 13 - Jerusalem Medical Ltd., an Israeli producer of...Ch. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Dwayne Cole, owner of a Florida firm that...Ch. 13 - Prob. 24PCh. 13 - Prob. 25PCh. 13 - Prob. 26PCh. 13 - Evaluate the various configurations of operating...Ch. 13 - Prob. 2CSCh. 13 - After researching revenue (yield) management in...Ch. 13 - The Magic used its original pricing systems of...Ch. 13 - Prob. 3VC
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- Explain the two common inventory estimation methods, mentioning key similarities and differences between the two and use practical real-life scenarios to elaborate on each.arrow_forwardExplain the operational planning needed in this freight operation. Include the transport routes, scheduling, and the types of multi-modal transport required, between the production facility in Prague to the warehouse in Hidd. 2. Explain the rules and regulations the company must meet in transporting the goods, including a suitable Incoterm, in this freight operation. 3. An explanation of the costs involved in this freight operation and how you would calculate a suitable charge-out rate (without using numbers).arrow_forwardGive examples of the term "Carrying Capacity" and how it's used.arrow_forward
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- Three important points of ASHLEY FURNITURE's planning are as follows: -Use of a suite of software to plan its supply chain operations. -Has a transportation optimization system to decide on the most suitable routes of transportation for delivering its products. -Provide inventories on a weekly basis Explain in each point why they are important.arrow_forwardWhat are the transportation model's three details requirements?arrow_forwardExplain how aggregate planning is different when thecompany does not provide a tangible product.arrow_forward
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