OPERATIONS MGMT - FIRST DAY
OPERATIONS MGMT - FIRST DAY
2018th Edition
ISBN: 9780135391242
Author: HEIZER
Publisher: PEARSON
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Chapter 13, Problem 5P
Summary Introduction

To evaluate: Plan C

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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QUESTION ONEProduct X is made of two units of Y and three units of Z. Y is made of one unit of A and two units of B. Z is made of two units of A and four units of C. the lead time for each material is given in table 1.Table 1. Lead time  Components    X    1Y    2Z    3A    2B    1C    3               Required;a) Construct the bill of material (BOM)b) If 100 units of X are required, how many units of each components areneeded? c) Develop a time-phased product structure, showing when each item shouldbe ordered. And in what quantity? d) Develop Gross Requirements Plan for each component.
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.
Q3 The numbers for March are correct.    Cost table: LayoffHiringInventory Totals: 36 36 55,209 Costs: $54,000 $162,000 $165,627 Cost of plan:$381,627 Planning values Starting inventory: 3,000 Starting and ending workforce: 214 Hours worked per month per hour: 240 Hours per unit: 30 Hiring cost per worker: $4,500 Layoff cost per worker: $1,500 Monthly per-unit holding cost: $3   Forecasted sales:   Month    Forecasted salesMarch    1,649April    1,427May    1,137June    976July    1,531August    1,976September    2,470October    2,529November    3,016December    2,910January    2,434February    1,945
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