OPERATIONS MGMT - FIRST DAY
OPERATIONS MGMT - FIRST DAY
2018th Edition
ISBN: 9780135391242
Author: HEIZER
Publisher: PEARSON
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Chapter 13, Problem 15P
Summary Introduction

To determine: The minimum cost using transportation method.

Introduction: Aggregate planning using transportation method helps to attain the minimum cost with the optimal plan. The major advantage of transportation method is to achieve the optimal solution using optimal plans.

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Question 1 (b)                                                                   A company is considering to invest in eight projects. The estimated cost of each project, the perceived priority points, the estimated number of new jobs each project would create are provided in the Table 1.                   Table 1 Project Cost ($) Priority Points New Jobs X1    X2   X3   X4   X5   X6   X7   X8    5000 4500 600 2000 6000 800 3200 2500 3176 2774 3513 2928 4607 862 3829 2708 5 1 2 1 3 1 7 2     4. The company wants to create at least 8 new jobs from these projects.                                                                                                  5. Only one of the two projects, i.e., X3 and X5 should be funded at this time but not both.    6. The company believes that if it decides to invest in project X7 then it should also invest in project X8, and vice versa.                           [DO NOT SOLVE THE ABOVE MODEL YOU DEVELOPED IN QUESTION 1 (b).…
QUESTION:   Present a closing statement explaining the benefits to Stayer of applying activity-based costing to its R&D activity for both in-house and outside charging purposes.
Question 1At Tropico, the activities required to service a car at a dealer can be viewed as a mini-project summarised in the following table:               The variability in times required to perform each activity is due to the different types, sizes, and conditions of the cars to be serviced. Round off to two decimal places were fractional.A. Draw the activity network diagram for this problem (either AON or AOA) (5 marks)B. Determine the Expected Time and Variance for each activity. (4 marks)C. Show the activity schedule (ES, EF, LS, and LF) as well as slack times. (5 marks)D. Use the ES, EF, LS, and LF from your activity schedule or table to determine the critical path for the project. (2 marks)E. What are the expected time and the variance of the project? (2 marks)F. What is the probability the project will be finished within 10 minutes? (2 marks)
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