OPERATIONS MGMT - FIRST DAY
OPERATIONS MGMT - FIRST DAY
2018th Edition
ISBN: 9780135391242
Author: HEIZER
Publisher: PEARSON
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Chapter 13, Problem 3P

The president of Hill Enterprises, Terri Hill, projects the firm’s aggregate demand requirements over the next 8 months as follows:

Chapter 13, Problem 3P, The president of Hill Enterprises, Terri Hill, projects the firms aggregate demand requirements over

Her operations manager is considering a new plan, which begins in January with 200 units on hand. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan A.

Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $5,000 per 100 units. The cost of laying off workers is $7,500 per 100 units. Evaluate this plan.

Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,400 in February incurs a cost of layoff for 200 units in February.

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Students have asked these similar questions
What detail is required to build the aggregate schedule for an operations manager? List and illustrate the distinction between the capability options and the demand options for aggregate preparation. The approach or formula always provides the overall minimal cost for the overall plan?
hello can you please provide an example of production plan in a business plan which includes the planned capacity and future capacity thank you!
DAT, Inc., needs to develop an aggregate plan for its product line. Relevant data are                                                                               Management prefers to keep a constant workforce and production level, absorbingvariations in demand through inventory excesses and shortages. Demand not met is carriedover to the following month.Develop an aggregate plan that will meet the demand and other conditions of theproblem. Do not try to i nd the optimum; just i nd a good solution and state the procedureyou might use to test for a better solution. Make any necessary assumptions.
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