Concept explainers
Tuff-Rider, Inc. manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component combinations. Identical bicycles are produced in lots of 100. The projected demand, lot size, and time standards are shown in the following table.
The shop currently works 8 hours a day, 5 days a week, 50 weeks a year. It operates five workstations, each producing one bicycle in the time shown in the table. The shop maintains a 15 percent capacity cushion. How many workstations will be required next year to meet expected demand without using overtime amid without decreasing the firm’s current capacity cushion?
Want to see the full answer?
Check out a sample textbook solutionChapter 4 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Additional Business Textbook Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management, Binder Ready Version: An Integrated Approach
Principles Of Operations Management
Business in Action (8th Edition)
- Terry, Inc., makes gasoline storage tanks. All production is done under contract. The company makes three basic models, but each model must be adapted to customer specifications for the location of outlets, insulation, and paint. It takes from three to six months to complete a tank. How should Terry account for the income for the business?arrow_forwardGeorgia Cabinets manufactures kitchen cabinets that are sold to local dealers throughout the Southeast. Because of a large backlog of orders for oak and cherry cabinets, the company decided to contract with three smaller cabinetmakers to do the final finishing operation. For the three cabinetmakers, the number of hours required to complete all the oak cabinets, the number of hours required to complete all the cherry cabinets, the number of hours available for the final finishing operation, and the cost per hour to perform the work are shown here: Cabinetmaker 1 Cabinetmaker 2 Cabinetmaker 3 Hours required to complete all the oak cabinets 50 44 32 Hours required to complete all the cherry cabinets 61 46 34 Hours available 35 25 30 Cost per hour $36 $43 $56 For example, Cabinetmaker 1 estimates that it will take 50 hours to complete all the oak cabinets and 61 hours to complete all the cherry cabinets. However, Cabinetmaker 1 only has 35 hours available for the final…arrow_forwardGeorgia Cabinets manufactures kitchen cabinets that are sold to local dealers throughout the Southeast. Because of a large backlog of orders for oak and cherry cabinets, the company decided to contract with three smaller cabinetmakers to do the final finishing operation. For the three cabinetmakers, the number of hours required to complete all the oak cabinets, the number of hours required to complete all the cherry cabinets, the number of hours available for the final finishing operation, and the cost per hour to perform the work are shown here: Cabinetmaker 1 Cabinetmaker 2 Cabinetmaker 3 Hours required to complete all the oak cabinets 47 40 27 Hours required to complete all the cherry cabinets 64 51 36 Hours available 40 30 35 Cost per hour $34 $41 $52 For example, Cabinetmaker 1 estimates it will take 47 hours to complete all the oak cabinets and 64 hours to complete all the cherry cabinets. However, Cabinetmaker 1 only has 40 hours available for the final…arrow_forward
- Georgia Cabinets manufactures kitchen cabinets that are sold to local dealers throughout the Southeast. Because of a large backlog of orders for oak and cherry cabinets, the company decided to contract with three smaller cabinetmakers to do the final finishing operation. For the three cabinetmakers, the number of hours required to complete all the oak cabinets, the number of hours required to complete all the cherry cabinets, the number of hours available for the final finishing operation, and the cost per hour to perform the work are shown here: Cabinetmaker 1 Cabinetmaker 2 Cabinetmaker 3 Hours required to complete all the oak cabinets 50 44 32 Hours required to complete all the cherry cabinets 61 46 34 Hours available 35 25 30 Cost per hour $36 $43 $56 For example, Cabinetmaker 1 estimates that it will take 50 hours to complete all the oak cabinets and 61 hours to complete all the cherry cabinets. However, Cabinetmaker 1 only has 35 hours available for the final…arrow_forwardHelter Industries, a company that produces a line of women’s bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps can be hired when needed and can be used as needed, whereas the full-time employees must be paid whether they are needed or not. Each full-time employee can produce 205 suits, while each temporary employee can produce 165 suits per month. May June July August3,200 2,800 3,100 3,000 The beginning inventory in May is 403 bathing suits. Bathing suits cost $40 to produce and carrying cost is 24 percent per year. Develop an aggregate plan that uses the 12 full-time employees each month and a minimum number of temporary employees. Assume that all employees will produce at their full potential each month.…arrow_forwardKLG is a textile manufacturer in Shanghai. They want to expand their t-shirt business into the United States. They have dedicated a factory in KLG to making the tshirts, and the production rate at that facility is 250 pallets of t-shirts per day. KLG's factory uses a just-in time production model so they store no safety stock at their manufacturing facility in Shanghai, The cost of space at the Shanghai facility is $30 per pallet per year. Each pallet has a value of $2000. KLG is opening a distribution center in Los Angeles from which they will serve the American demand for 250 pallets of t-shirts per day. They keep a safety stock of 1200 pallets of t-shirts at the distribution center. The cost of space at the LA facility is $40 per pallet per year. Each pallet has a value of $2200. KLG hires you as a logistics consultant to help them decide whether to transport the t-shirts from Shanghai to Los Angeles using sea or air. KLG uses a holding cost rate of 20%. FlyHigh Airline has…arrow_forward
- Yost-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to working on that workstation alone and is paid $15 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week. Which of the four workstations, W, X, Y, or Z has the highest aggregate workload, and thus…arrow_forwardYost-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to working on that workstation alone and is paid $15 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week. Workstation W, with a total load time of ____ minutes. (Enter your response as an integer.)arrow_forwardYost-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $15 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week.…arrow_forward
- A.J.’s Wildlife Emporium manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations (X, Y, Z) using a small batch process. Each of the products is produced according to the flowchart in Figure. Additionally, the flowchart indicates each product’s price, weekly demand, and processing times per unit. Batch setup times are negligible.A.J. can make and sell up to the limit of its weekly demand and there are no penalties for not being able to meet all of the demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $16 per hour. The plant operates 40 hours per week, with no overtime. Overhead costs are $2,000 per week. Based on the information provided, as well as the information contained in the flowchart, answer the following questions. a. Using the traditional method, which bases decisions solely on a product’s contribution to profits and overhead, what is the…arrow_forwardTrue or False: Cournot model applies well to industries where firms face capacity constraints.arrow_forwardSuppose a chef ices and decorates cupcakes in batches of 100. Each batch requires 30 minutes to setup the equipment, and each cupcake in the batch takes 2 minutes to process. What is the throughput capacity (in cupcakes and/or minutes)? Pick the closest answer. Group of answer choices a .5 b 1 c 1.5 d 2 e 2.5 f 3arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,