Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
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Question
Chapter 13, Problem 6P
a)
Summary Introduction
To evaluate: Plan D
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.
b)
Summary Introduction
To determine: Plan E
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 3
Regular output capacity is 130 units per month. Regular cost per unit = K600. Overtime cost per unit
K900. Beginning inventory is 0 units. We have the forecast of engine demand shown below:
a) Develop a chase plan that matches the forecast. Calculate the cost of the plan.
b) Develop a level plan that uses inventory to absorb fluctuations. Compare the costs of the level
plan to the costs of the chase plan from Part (a). Inventory carrying cost per unit per month = 20.
Backlog cost per unit per month = K900. There should be no backlog in the final month.
Month
Forecast
1
120
2
3
135 140
4
120
End of assignment 1
5
125
6
125
7
140
=
8
135
Total
1,040
What is aggregate planning?
3. Your independent oil and gas company is considering the purchase at time zero of a
100 % working interest in a property. If you elect to develop the lease for an 87.5%
revenue interest, the following costs will be incurred: in time zero, the lease bonus
cost is $100,00o, intangible drilling costs are estimated at $550,000 while tangible
completion costs are estimated at $300,000. Operating costs are estimated to
remain constant at $8.00 per barrel (includes production costs, severance taxes and
ad-valorem taxes) in each of years 1, 2, 3 and 4. Oil prices are forecasted to be
$50.00 per barrel in each of years 1, 2, 3, and 4. Production is summarized in the
following table. The escalated dollar minimum rate of return is 12.0%. Use net
present value analysis to determine if the acquisition and development of this lease
is economically viable: (a) Before considering income taxes, (b) Assuming income
tax rate of 30%. (Expense 100% of intangible drilling costs at the end of first year,…
Chapter 13 Solutions
Operations Management
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 - Question: 7. What is level scheduling? What is the...Ch. 13 - Question: 8. Define mixed strategy. Why would a...Ch. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Question: 11. What is the relationship between the...Ch. 13 - Prob. 12DQCh. 13 - Question: 13. What are major limitations of using...Ch. 13 - Prob. 14DQCh. 13 - Question: 13.1 Prepare a graph of the monthly...Ch. 13 - Prob. 2PCh. 13 - The president of Hill Enterprises, Terri Hill,...Ch. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Question: 13.10 The SOP team (see Problem 13.9)...Ch. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Question: 13.14 Jerusalem Medical Ltd., an...Ch. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Question: 13.18 Jose Martinez of El Paso has...Ch. 13 - Prob. 19PCh. 13 - Prob. 23PCh. 13 - Prob. 24PCh. 13 - Prob. 25PCh. 13 - Prob. 26PCh. 13 - Prob. 1CSCh. 13 - Prob. 2CSCh. 13 - Prob. 1.1VCCh. 13 - Prob. 1.2VCCh. 13 - Question: 3. What are some concerns the team needs...
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