Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 8.4, Problem 28P
(a)
Summary Introduction
Interpretation: The planned order release for the following component with capacity constraints is to be determined.
Concept Introduction:
The planned order release can be called as method which is based on the specified lead time till the planned receipt date is not received.
(b)
Summary Introduction
Interpretation: The total holding cost and setup cost in capacitated case of the solution is to be calculated.
Concept Introduction:
The planned order release can be called as method which is based on the specified lead time till the planned receipt date is not received.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
HAL Ltd. produces a line of high-capacity disk drives for mainframe computers. The housings for the drives are produced in Hamilton, Ontario, and shipped to the main plant inToronto. HAL uses the drive housings at a fairly steady rate of 720 per year. Suppose that the housings are shipped in trucks that can hold 40 housings at one time. It is estimated that the fixed cost of loading the housings onto the truck and unloading them on the other end is $300 for shipments of 120 or fewer housings (i.e., three or fewer truckloads). Each trip made by a single truck costs the company$160 in driver time, gasoline, oil, insurance, and wear and tear on the truck.a. Compute the annual costs of transportation and loading and unloadingthe housings for the following policies: (1) shipping one truck per week,(2) shipping one full truckload as often as needed, and (3) shipping three full truckloads as often as needed.b. For what reasons might the policy in part (a) with the highest annual cost be more…
Maha industries produces a product whose anticipated demand for the six periods is 63, 256, 301 312, 304and 294. If the firm has adopted level production strategy with a constant production of 280 units per period. The regular production cost is RO 12 per unit. whereas the overtime and subcontract costs are RO 20 and RO25 per unit respectively. There is no limit on subcontracting however, maximum overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per period. What is the total costs including all costs incurred? 21650 b500 20160 600
The requirements of local motor bikes for a company are given as [25,5,25,30, 20] for week 1, 2, 3, 4 and 5 respectively. If the setup costs and holding costs assumed at $80 and $1 /unit/week respectively, find the lot sizing using both Silver Meal and LUC Heuristics.
Chapter 8 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 8.1 - Prob. 1PCh. 8.1 - Prob. 2PCh. 8.1 - Prob. 3PCh. 8.1 - Prob. 4PCh. 8.1 - Prob. 5PCh. 8.1 - Prob. 6PCh. 8.1 - Prob. 7PCh. 8.1 - Prob. 8PCh. 8.1 - Prob. 9PCh. 8.2 - Prob. 10P
Ch. 8.2 - Prob. 11PCh. 8.2 - Prob. 12PCh. 8.2 - Prob. 13PCh. 8.2 - Prob. 14PCh. 8.2 - Prob. 15PCh. 8.2 - Prob. 16PCh. 8.2 - Prob. 17PCh. 8.2 - Prob. 18PCh. 8.2 - Prob. 19PCh. 8.2 - Prob. 20PCh. 8.2 - Prob. 21PCh. 8.2 - Prob. 22PCh. 8.3 - Prob. 23PCh. 8.3 - Prob. 24PCh. 8.3 - Prob. 25PCh. 8.4 - Prob. 26PCh. 8.4 - Prob. 27PCh. 8.4 - Prob. 28PCh. 8.4 - Prob. 29PCh. 8.5 - Prob. 30PCh. 8.5 - Prob. 31PCh. 8.5 - Prob. 32PCh. 8.5 - Prob. 33PCh. 8.5 - Prob. 34PCh. 8.6 - Prob. 35PCh. 8.6 - Prob. 36PCh. 8.6 - Prob. 37PCh. 8.6 - Prob. 38PCh. 8.6 - Prob. 39PCh. 8.6 - Prob. 40PCh. 8 - Prob. 41APCh. 8 - Prob. 42APCh. 8 - Prob. 43APCh. 8 - Prob. 44APCh. 8 - Prob. 45APCh. 8 - Prob. 46APCh. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51AP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- A tricycle factory uses 3 tires , 1 frame, and 2 pedals . If the factory. has available 270 tires, 90 frames, and 170 pedals , which item would limit the number of complete tricycles that can be assembled ? Explain your choice. A)tires. B) frames C) pedals D) both tires and framesarrow_forwardA specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 pounds annually. The beans are purchased from a local supplier for $2.40 per pound. The coffeehouse estimates that it costs $45 in paperwork and labor to place an order for the coffee, and holding costs are based on a 20 percent annual interest rate.a. Determine the optimal order quantity for Colombian coffee.b. What is the time between placement of orders?c. What is the average annual cost of holding and setup due to this item?d. If replenishment lead time is three weeks, determine the reorder level based on the on-hand inventory.arrow_forwardBell Computers purchases integrated chips at $350per chip. The holding cost is $35 per unit per year, the orderingcost is $120 per order, and sales are steady, at 400 per month. Thecompany's supplier, Rich Blue Chip Manufacturing, Inc., decidesto offer price concessions in order to attract larger orders. Theprice structure is shown in the table. a) What is the optimal order quantity and the minimum annualcost for Bell Computers to order, purchase, and hold theseintegrated chips?b) Bell Computers wishes to use a 10% holding cost rather thanthe fixed $35 holding cost in (a). What is the optimal orderquantity, and what is the optimal annual cost?arrow_forward
- Can the optimal stocking level in the single-period model ever be less than expected demand?Explain briefly.arrow_forwardPlease solve this. Lebar Daun Sdn Bhd is planning to use the economic order quantity model to determine the optimal order levels of raw materials. Material Z is consumed evenly over the year and the current usage is 120,000 units. The material is purchased in boxes and each box contains 12 units of material Z, at a price of RM252 per box. A safety stock of 200 boxes is kept. The cost of placing and handling orders is estimated to be RM6,300, which is based cost incurred for similar orders that have already made. The cost of RM6,300 was for 30 orders. The inflation of 2 per cent should be added to the above ordering costs. Besides, the company estimates to be charged the transporation cost of RM15 per order. It should be assumed that ordering costs change in proportion to the number of orders place. Other costs which relate to material Z such as insurance, interest and space costs for a year, were calculated at 15 % of the purchase price. Required: a. Calculate the order quantity that…arrow_forwardMy School Notebook Company produces custom 3-ring binders with school logos for high schools in the Midwest. They mold binders in four standard colors and then imprint the school’s logo on a to-order basis. The average daily demand for the base color notebooks is as follows: Green: 470 notebooks/day Blue: 200 notebooks/day Red: 280 notebooks/day Black: 330notebooks/day MySchool can produce 1,760 notebooks per 24-hour day. It takes 8 hours to setup production for another color. Calculate the minimum production cycle time in days.arrow_forward
- I need assistance to solve the following problem in Operations Analysis. 2) A coffee store is experiencing sales of 280 pounds of coffee beans per year. The supplier charges the store $2.40 per pound, and the paperwork and labor costs incurred by the store in placing an order total $45 per order. Holding costs are based on 20% interest rate per annum. a) What is the optimal order size (write down the model name, its parameters and formula)? b) What is the time between order placements (include the formula)? c) What is the average annual holding cost (include the formula)? d) If the lead time is 3 weeks, what is the reorder level based on inventory on hand (include the formula)?arrow_forwardHP produces its multimedia notebook computer on a production line that has an annual capacity of 10000 units. HP estimates the annual demand for this model at 5000 units. The cost to set up the production line is $2200, and the annul holding cost is $25 per unit. Show steps to find: a. What is the optimal production lot size? b. How many production runs should be made each year? c. What is the total inventory cost?d. What is the cycle time?arrow_forwardBerry Computer is considering moving some of its operations overseas in order to reduce labor costs. In the United States, its main circuit board costs Berry $75 per unitto produce, while overseas it costs only $65 to produce. Holding costs are based on a20 percent annual interest rate, and the demand has been a fairly steady 200 units perweek. Assume that setup costs are $200 both locally and overseas. Production leadtimes are one month locally and six months overseas.a. Determine the average annual costs of production, holding, and setup at each location, assuming that an optimal solution is employed in each case. Based on theseresults only, which location is preferable?arrow_forward
- Berry Computer is considering moving some of its operations overseas in order to reduce labor costs. In the United States, its main circuit board costs Berry $75 per unit to produce, while overseas it costs only $65 to produce. Holding costs are based on a 20 percent annual interest rate, and the demand has been a fairly steady 200 units per week. Assume that setup costs are $200 both locally and overseas. Production lead times are one month locally and six months overseas.a. Determine the average annual costs of production, holding, and setup at each location, assuming that an optimal solution is employed in each case. Based on these results only, which location is preferable?b. Determine the value of the pipeline inventory in each case. (The pipeline inventory is the inventory on order.) Does comparison of the pipeline inventories alter the conclusion reached in part (a)?c. Might considerations other than cost favor local over overseas production?arrow_forwardTuff-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 90. The projected demand, lot size, and time standards are shown in the following table: LOADING... Item Touring Mountain Demand forecast 4,000 units/year 12,000 units/year Lot size 110 units 90 units Standard processing time 0.30 hour/unit 0.75 hour/unit Standard setup time 2 hours/lot 3 hours/lot 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 and without decreasing…arrow_forwardWhat is the underlying principle of the square-root rule? How do inventories change as the number of warehouses in a logistics network changes?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY