Operations Management, Student Value Edition & Student Cd For Operations Management
Operations Management, Student Value Edition & Student Cd For Operations Management
11th Edition
ISBN: 9780133407983
Author: HEIZER, Jay
Publisher: Pearson College Div 2013-03-08
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Chapter 13, Problem 16P
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 THREEa) Zambia Breweries has a backlog of 250 crates of Fanta drinks at the end of December. The demand of Fanta drinks is expected to be 400 crates in January, 500 crates in February and 550 crates in March. Each worker can produce 50 crates of drinks per month with regular wage costing the company K10 000 per worker per month. Hiring cost has been calculated to be K25 000 per. Hiring cost has also been calculated to be K50 000 per worker. Backlog cost have been determined to cost the company K250 per worker. There are no cost associated with carrying the inventory. Develop a level of production plan (aggregate plan) and determine the cost. b) Explain why aggregate planning is necessary in production and operation management.c) Define the meaning and what happens at each of these aggregate capacity planning;i) Matching Demand approachii) Level Capacity approach.
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.
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