Concept explainers
A
Interpretation: All the decision variables and a linear program for the given production planning data should be determined and formulated.
Concept Introduction: The Company produces feed supplement for animal foods. Production of 1000 pounds costs $810 in regular time, and costs $900 in overtime.
B
Interpretation: A solution to the given data and information using a computer package like POM for Windows should be provided.
Concept Introduction: The Company produces feed supplement for animal foods. Production of 1000 pounds costs $810 in regular time, and costs $900 in overtime.
C
Interpretation: Changes in the cost minimizing solution should be determined if a proposed alteration is done in the provided data.
Concept Introduction: The Company produces feed supplement for animal foods. Production of 1000 pounds costs $810 in regular time, and costs $900 in overtime.
D
Interpretation: The increase in the cost of production plan of the company should be determined.
Concept Introduction: The Company produces feed supplement for animal foods. Production of 1000 pounds costs $810 in regular time, and costs $900 in overtime.
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Chapter D Solutions
OPERATIONS MANAGEMENT CUSTOM ACCESS
- An international footwear company is dedicated to produce multiple models of shoes depending on the season, but only one of these models is produced all year round, which is Chuck Taylor All-Star high top in black, a shoe whose demand has not changed in recent years. Daily in its factory in China, 20,704 pairs are produced, therefore, 496,896 pairs are produced per month, of which only 495,765 pairs are conforming products. In the month of August 2021 they worked 24 days, with shifts of 8 hours a day, with 45 minutes break for lunch, in the mornings they must warm up machines for 15 minutes before starting production; they work in this way from Monday to Saturday, when they reach 495,000 pairs they make a production review that is carried to the moment; this waiting time takes them about 1 hour and a half. Determine the total number of parts produced per hour during the month of October 2021.arrow_forwardFor two new output products, the manager must set up inventory purchasing systems, P34 and P35. P34 can be ordered at any moment, but only once every four weeks can P35 be ordered. The corporation runs 50 weeks a year and the weekly utilisation rates are usually allocated on both pieces. The manager has collected the following documents. Point P34 Point P35 Average weekly request 60 units Seventy units Deviation from norm Four units a week Five units a week $15 $20 per unit. The expense of annual keeping is 30% 30% of the Price $70 to order $30 30 2 weeks lead period 2 weeks Acceptable stockout chance 2.5% 2.5% A. When can each object be reordered by the manager?arrow_forwardVGHC, humanitarian aid service in the Sub-Saharan Africa, operates its laboratory on-site. The lab maintains an inventory of test kits for a variety of procedures. VGHC uses 780 A1C kits each year. Ordering costs are $15 and holding costs are $3 per kit per year. The new price list indicates that orders of fewer than 73 kits will cost $60 per kit, 73 through 144 kits will cost $56 per kit, and orders of more than 144 kits will cost $53 per kit. Determine the optimal order quantity and the total cost.arrow_forward
- An Electric Motor manufacturer has an annual production of 10,000 units. The electric motor ends are subcontracted to an aluminum-die casting company, in batch quantities of 2,500 units. The motor manufacturer purchases the die-cast tooling for $ 80,000, which requires refurbishing and adjustment in the Tool Room requiring 40 (PHC), prior to every Machine setup. The die-cast machine set up requires four hours, and the production cycle time is 0.85 minutes. The special aluminum alloy costs $1.20 per pound, and the Productive Hourly Cost (PHC) is $120 per hour Question a. Estimate the batch and unit cost. What is the percentage contribution of PHC, Tooling Cost and Material Cost to the Unit Cost ? Question b. Estimate the annual cost savings if the Electric Motor Manufacturer orders the motor ends in batches of 5000 units.arrow_forwardA chemical plant produces sodium bisulfate in 140 kg bags. Demand for this product is 35 tonnes per day. The capacity for producing this product is 50 tonnes per day. Setup cost is $500, and storage and handling costs are $240 per tonne per year. The company operates 210 days a year. (Note: 1 tonne = 1,000 kg). a. What is the optimal number of bags per production run? (Round your intermediate calculations to 2 decimal places and the final answer to the nearest whole number.) Optimal number of bags 2958 b. What would the average inventory level be for this lot size? (Round your intermediate calculations to 2 decimal places and the final answer to the nearest whole number.) Average inventory bags c. Determine the approximate length of a production run, in days. (Round the intermediate calculations and final answer to 2 decimal places.) Run length days d. About how many production runs per year would there be? (Round your intermediate calculations to 2 decimal places and the final answer…arrow_forwardJack Ltd is a market leader in the manufacture of apple juice. They operate areorder level system of inventory management, and the following information isavailable for green apples:Average usage 800 per dayMinimum usage 540 per dayMaximum usage 1260 per dayLead time for replenishment 16-20 dayReorder quantity 19,500 applesRequired:a. Calculate the reorder levelarrow_forward
- Kevins Shampoo company makes four kinds of shampoo: rose, lemon, ginger, and tea tree. The demand for the four scents are 191, 164, 92 and 74 kg per hour respectively. The production process can produce any shampoo at the rate of 581 kg per hour, but 2 hours are needed to switch between scents. The process doesn’t produce any shampoo during switchover times. Kevin wants to choose a production schedule that (i) cycles repeatedly through the four scents, (ii) meets the required demand and (iii) minimizes the amount of inventory held. (please round your answers to 2 decimal places) 1.How many kg of rose shampoo should Kevin produce before switching over to another scent? 2.Kevin needs to buy coconut oil to make her shampoo. She needs 1401 kg of coconut oil per day on average. The supplier charges a EUR 77 delivery fee per order (which is independent of the order size) and EUR 5.13 per kg. Kevin annual holding cost is 30%. Assume 52 weeks per year and 5 days per week. If Kevin wants to…arrow_forwardFedori Corporation has a Parts Division that does work for other Divisions in the company as well as for outside customers. The company's Machinery Division has asked the Parts Division to provide it with 4,000 special parts each year. The special parts would require P23.00 per unit in variable production costs. The Machinery Division has a bid from an outside supplier for the special parts at P37.00 per unit. In order to have time and space to produce the special part, the Parts Division would have to cut back production of another part-the YR24 that it presently is producing. The YR24 sells for P40.00 per unit, and requires P28.00 per unit in variable production costs. Packaging and shipping costs of the YR24 are P3.00 per unit. Packaging and shipping costs for the new special part would be only P1.50 per unit. The Parts Division is now producing and selling 15,000 units of the YR24 each year. Production and sales of the YR24 would drop by 20% if the new special part is produced for…arrow_forwardCassie Company manufactures a line of deluxe office fixtures. The annual demand for its miniature oak file is estimated to be 5,000 units. The annual cost of carrying one unit inventory is P10, and the cost to initiate a production run is P1,000. There are no miniature oak files on hand, and Cassie has scheduled four equal production runs of the miniature oak file for the coming year, the first of which is to be run immediately. Cassie has 250 business days per year. Assume that sales occur uniformly throughout the year and the production is instantaneous. If cassie does not maintain a safety stock, the estimated total carrying costs for the office fixtures for the coming year based on the current schedule isarrow_forward
- As a logistics specialist, you are responsible for meeting customer demand. One of your customers places orders for you to supply four products by the end of October. You have limited capacity for raw material and other facilities. You are required to satisfy customer demand by manufacturing the products and/or buying from a supplier. After consulting with the production department, you obtained the following information. Product A Product B Product C Product D Order quantity 2000 3500 1500 2500 Hours required on machine X per unit 2 4 5 3 Hours required on machine Y per unit 4 3 6 2 Raw material in kilos 5 1 4 6 Time needed for Packaging per unit 36 minutes 30 minutes 45 minutes 24 minutes Available monthly hours per month: 8,000 on machine X, 6000 on machine Y, and 3,000 hours for packaging. Purchased items from your supplier are already packaged. Available raw material per month: 5,000 kilos…arrow_forwardPaul Williams recently joined XYZ2 Limited as the head of accounting department. Williams spent the first few weeks to analyse the account information system. Based on this analysis, Williams is concerned about the purchase system of XYZ2 Limited. Here is the details of purchase system. The purchasing agent of XYZ2 Limited periodically checks inventory levels from a computer terminal, which is connected to a central accounting system. The agent searches the inventory file for items that need to be ordered. He then selects a supplier, prints a hard copy of the purchase order, and mails it to the vendor. The clerk files one copy of the PO in the department and sends a second copy to the AP Clerk. When the inventories arrive at the receiving department, a receiving clerk reconciles the items with the packing slip, inspects them for condition, and manually prepares a three-part receiving report. The clerk sends one copy to the purchasing department to close out the open PO, files one…arrow_forwardGlams Touch is a budding cosmetics family business in Sekondi. The owners, Baaba Benson and Bernard Benson, must ensure that they judiciously use the store space available. They have never kept detailed inventory or sales records. They immediately place new items on the shelves as soon as shipment of goods arrives.Invoices from suppliers are only kept for tax purposes. During sales, they record the items numbers and the total amount received at the cash register. The owners use their own judgment in identifying items that need to be reordered. Baaba and Bernard rely on their own judgment in deciding the cosmetics that need to be restocked.Analyse the business implication of this situation. In your view, how could information systems be utilized to assist the Bensons manage Glams Touch. Enumerate some data that should be captured by the systems and what information outputs are to be churned out from the system.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
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