The production schedule which would minimize the sum of inventory and setup cost. Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

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Answer 1

Question

Chapter 6, Problem 70P

a)

Summary Introduction

To determine: The production schedule which would minimize the sum of inventory and setup cost.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

b)

Summary Introduction

To determine: Whether the decrease in setup cost would raise the level of inventory.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

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A machine tool company conducts a job-training programme at a ratio of one for everyten trainees. The training programme lasts for one month. From past experience it has been found thatout of 10 trainees hired, only seven complete the programme successfully. (The unsuccessful traineesare released). Trained machinists are also needed for machining. The company's requirement for thenext three months is as follows:January: 100 machinists, February: 150 machinists and March: 200 machinists.In addition, the company requires 250 trained machinists by April. There are 130 trained machinistsavailable at the beginning of the year. Pay roll cost per month is:Each trainee Rs. 400/- per month.Each trained machinist (machining or teaching): Rs. 700/- p.m.Each trained machinist who is idle: Rs.500/- p.m.(Labour union forbids ousting trained machinists). Build a l.p.p. for produce the minimum costhiring and training schedule and meet the company’s requirement.

During an eight-hour shift, 750 non-defective parts are desired as a result of a manufacturing operation. The default operation time is 15 minutes. As the operators of machine are inexperienced, the actual time they take to perform the operation is 20 minutes, and, on average, a fifth of the parts that start to be manufactured are lost. Assuming that each one of the machines used in this operation will not be available for one hour in each shift, determine the number of machines needed.

A manufacturing plant produces a product 'A' that requires one unit of 'B' and ½ unit of 'C'. Each unit of 'B' is comprised of one unit of 'D', two units of 'E', and one unit of 'F'. Each unit of 'C' requires ½ unit of 'G' and three units of 'H'. The manufacturing lead times for the components are as follows: 'A' - two weeks, 'B' - one week, 'C' - two weeks, 'D' - two weeks, 'E' - three weeks, 'F' - one week, 'G' - two weeks, 'H' - one week. There are 20 units in stock for each of these components. 100 units of 'A' are needed for delivery in seven weeks: a) Develop the product structure and indexed bill of materials for the product. b) Create a gross and net requirements plan for the manufacturer of the product.

Answer 2

Question

Chapter 6, Problem 70P

a)

Summary Introduction

To determine: The production schedule which would minimize the sum of inventory and setup cost.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

b)

Summary Introduction

To determine: Whether the decrease in setup cost would raise the level of inventory.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

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Answer 3

Question

Chapter 6, Problem 70P

a)

Summary Introduction

To determine: The production schedule which would minimize the sum of inventory and setup cost.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

b)

Summary Introduction

To determine: Whether the decrease in setup cost would raise the level of inventory.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 70P

a)

Summary Introduction

To determine: The production schedule which would minimize the sum of inventory and setup cost.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

b)

Summary Introduction

To determine: Whether the decrease in setup cost would raise the level of inventory.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 70P

a)

Summary Introduction

To determine: The production schedule which would minimize the sum of inventory and setup cost.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

b)

Summary Introduction

To determine: Whether the decrease in setup cost would raise the level of inventory.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

Answer 6

Chapter 6, Problem 70P

a)

Summary Introduction

To determine: The production schedule which would minimize the sum of inventory and setup cost.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

Answer 7

Chapter 6, Problem 70P

a)

Summary Introduction

To determine: The production schedule which would minimize the sum of inventory and setup cost.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

Answer 8

b)

Summary Introduction

To determine: Whether the decrease in setup cost would raise the level of inventory.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

Answer 9

b)

Summary Introduction

To determine: Whether the decrease in setup cost would raise the level of inventory.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 6.3 - Prob. 1P Ch. 6.3 - Prob. 2P Ch. 6.3 - Solve Problem 1 with the extra assumption that the...Ch. 6.3 - Prob. 4P Ch. 6.3 - Prob. 5P Ch. 6.3 - Prob. 6P Ch. 6.3 - Prob. 7P Ch. 6.3 - Prob. 8P Ch. 6.3 - Prob. 9P Ch. 6.3 - Prob. 10P

The production schedule which would minimize the sum of inventory and setup cost. Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

Solution Summary: The author explains the Net Present Value (NPV) and Solver parameter to determine the production schedule which would minimize inventory and setup cost.

Concept explainers

To determine: The production schedule which would minimize the sum of inventory and setup cost.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

To determine: Whether the decrease in setup cost would raise the level of inventory.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

Want to see the full answer?

Chapter 6 Solutions

The production schedule which would minimize the sum of inventory and setup cost. Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

Solution Summary: The author explains the Net Present Value (NPV) and Solver parameter to determine the production schedule which would minimize inventory and setup cost.

Concept explainers

To determine: The production schedule which would minimize the sum of inventory and setup cost. Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

To determine: Whether the decrease in setup cost would raise the level of inventory. Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

Want to see the full answer?

Chapter 6 Solutions

To determine: The production schedule which would minimize the sum of inventory and setup cost.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).

To determine: Whether the decrease in setup cost would raise the level of inventory.

Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).