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business
operations management 6th
Operations Management Sustainability And Supply Chain Management 13th Global Edition Jay Heizer, Barry Render, Chuck Munson - Solutions
Given the following data on a hardware item stocked by Andreas Wieland’s paint store in Copenhagen, should the quantity discount be taken?• D = 2,000 units; S = $10; H = $1; P = $1 • Discount price = $.75 • Quantity needed to qualify for discount = 2,000 units lop5
Huehn-Brown Products in St. Petersburg offers the following discount schedule for its 4-by-8-foot sheets of quality plywood.ORDER UNIT COST 9 sheets or less $18.00 10 to 50 sheets $17.50 More than 50 sheets $17.25 Home Sweet Home Company orders plywood from HuehnBrown. Home Sweet Home has an
Authentic Thai rattan chairs (shown in the photo)are delivered to Gary Schwartz’s chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200 chairs. Carrying cost is $30 per unit per year, and the cost of a stockout is $70 per chair per year.
A local hypermarket in Kuwait supplies juice boxes from a manufacturer in Saudi Arabia. The reorder point, without safety stock, is 800 boxes. The carrying cost is KWD 20 (Kuwaiti Dinar) per box per year, and the ordering cost is KWD 50 per box per year. Given the following demand probabilities
Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the BB-1 set. (BB-1 stands for Body Beautiful Number 1.) The carrying cost for BB-1 is $5 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 7 times a year. The stockout cost
Chicago’s Hard Rock Hotel distributes a mean of 1,000 bath towels per day to guests at the pool and in their rooms.This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry firm that has the linens contract requires a 2-day lead time. The
Metro hypermarket in Kuwait supplies juice boxes from a manufacturer in Saudi Arabia. Daily demand is almost constant at 100 boxes per day. The lead time for boxes delivery is normally distributed with a mean of 5 days and a standard deviation of 2 days. The hypermarket has a 95% service level.
The distributor of Sumitomo Tires in Egypt estimates the annual demand of tires for next year to be normally distributed with a mean of 100,000 tires and a standard deviation of 3,000 tires. The ordering cost is estimated to be E£ 20,000 per order and the holding cost is E£ 80 per tire per year.
Demand during lead time for one brand of TV is normally distributed with a mean of 36 TVs and a standard deviation of 15 TVs. What safety stock should be carried for Dennis Yu’s Appliance Outlet to provide a 90% service level? What is the appropriate reorder point?Problems 12.51–12.53 relate to
Henrique Correa’s bakery prepares all its cakes between 4 a.m. and 6 a.m. so they will be fresh when customers arrive. Day-old cakes are virtually always sold, but at a 50% discount off the regular $10 price. The cost of baking a cake is $6, and demand is estimated to be normally distributed,
The company organizing the famous rapper Sean Paul’s concert in Dubai has decided to print shirts to be sold at the event. The company has estimated that 20,000 attendees will attend the concert and, on an average, 40% of the attendees usually buy shirts, with a standard deviation of 0.05. The
Develop an inventory plan to help ZBC. lop1
Discuss ROPs and total costs. lop1
How can you address demand that is not level throughout the planning horizon? lop1
How does the mix of Frito-Lay’s inventory differ from those at a machine or cabinet shop (a process-focused facility)? lop1
What are the major inventory items at Frito-Lay, and how rapidly do they move through the process? lop1
What are the four types of inventory? Give an example of each at Frito-Lay. lop1
How would you rank the dollar investment in each of the four types (from the most investment to the least investment)? lop1
Why does inventory flow so quickly through a Frito-Lay plant? lop1
Why does the company keep so many plants open? lop1
Why doesn’t Frito-Lay make all its 41 products at each of its plants? lop1
What inventory adjustment might Celebrity make to prepare for an extreme event such as a hurricane or mechanical failure while at sea? lop1
What inventory management techniques seen in this chapter could be used at Celebrity? lop1
How should a cost analysis be performed to determine whether to buy at a foreign port or to ship supplies from Celebrity’s U.S.base in Florida? lop1
In many respects, the food inventory decision for each Celebrity cruise matches the single-period inventory model described in this chapter. Consider the decision about chicken. Suppose that Celebrity purchases chicken in bulk for $0.80 per pound, and any chicken left over after a cruise is donated
Explain how Wheeled Coach implements ABC analysis. lop1
If you were to take over as inventory control manager at Wheeled Coach, what additional policies and techniques would you initiate to ensure accurate inventory records? lop1
How would you go about implementing these suggestions? lop1
ABC analysis divides on-hand inventory into three classes, based on:a) unit price.b) the number of units on hand.c) annual demand.d) annual dollar values. lop1
Cycle counting:a) provides a measure of inventory turnover.b) assumes that all inventory records must be verified with the same frequency.c) is a process by which inventory records are periodically verified.d) all of the above. lop1
Extra units in inventory to help reduce stockouts are called:a) reorder point.b) safety stock.c) just-in-time inventory.d) all of the above. lop1
Define sales and operations planning 567
Define aggregate planning 568
Identify optional strategies for developing an aggregate plan 569
Prepare a graphical aggregate plan 572
Solve an aggregate plan via the transportation method 578
Understand and solve a revenue management problem 582
Define sales and operations planning. lop4
Why are S&OP teams typically cross-functional? lop4
Define aggregate planning. lop4
Explain what the term disaggregation means when applied in a manufacturing environment. What is the output of this process? lop4
List the strategic objectives of aggregate planning. Which one of these is most often addressed by the quantitative techniques of aggregate planning? Which one of these is generally the most important? lop4
Define chase strategy. lop4
Identify the two categories of aggregate planning strategies and explain the difference between them. lop4
Define mixed strategy. Why would a firm use a mixed strategy instead of a simple pure strategy? lop4
What are the advantages and disadvantages of varying the size of the workforce to meet demand requirements each period? lop4
List and briefly discuss the four techniques used to control labor as part of aggregate planning in the service industry. lop4
What is the relationship between the aggregate plan and the master production schedule? lop4
Why are graphical aggregate planning methods useful? lop4
What are major limitations of using the transportation method for aggregate planning? lop4
What is revenue management? Provide examples of industries where revenue management is popular. lop4
The table below provides information about the demand forecast and the number of working days for a tools manufacturing factory in Egypt.MONTH PRODUCTION DAYS FORECAST DEMAND (UNITS)Jan. 22 1,000 Feb. 19 1,200 Mar. 21 1,100 Apr. 20 1,200 May 22 1,300 June 21 1,200 Jul. 20 1,250 Aug. 22 1,300 Sept.
Develop two other plans for the Mexican roofing manufacturer described in Examples 1 to 4 (pages 572–576) and Solved Problem 13.1 (page 588).a) For Plan 5, use constant workforce of eight workers for the first 3 months and ten workers for the last 3 months. Use subcontracting to meet the
The president of Hill Enterprises, Terri Hill, projects the firm’s aggregate demand requirements over the next 8 months as follows:Jan. 1,400 May 2,200 Feb. 1,600 June 2,200 Mar. 1,800 July 1,800 Apr. 1,800 Aug. 1,800 Her operations manager is considering a new plan, which begins in January with
Hill’s operations manager (see Problems 13.3 through 13.5) is also considering two mixed strategies for January–August: Produce in overtime or subcontracting only when there is no inventory.◆ Plan D: Keep the current workforce stable at producing 1,600 units per month. Permit a maximum of 20%
Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data:COSTS Holding cost $8/disk/month Subcontracting $80/disk Regular-time labor $12/hour Overtime labor $18/hour for hours above 8 hours/worker/day
You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua (see Problem 13.7) that you can do a better job at aggregate planning than her current staff. She said, “Fine.You do that, and you have a 1-year contract.” You now
A motherboard manufacturer in China has received the following demand estimates for the next 6 months:MONTH JAN FEB MAR APR MAY JUN Demand 2,000 2,000 5,000 3,000 4,000 2,000a) The firm has estimated the carrying costs to be 10 Yuan per unit per month, stockout costs to be 40 Yuan per unit, regular
Using the data in Problem 13.9, prepare the following two plans. Compare Plans C and D with Plans A and B and make a recommendation.◆ Plan C – A chase plan. Assume the current workforce at 20 workers and productivity at 100 units per worker per month. Hiring cost is 500 Yuan per worker and
Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate plan, and the marketing department has provided a four-quarter forecast. All are shown as
Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast:QUARTER FORECAST 1 1,800 2 1,100 3 1,600 4 900 COSTS/OTHER DATA Previous quarter’s output 5 1,300 cases Beginning
Ram Roy’s firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation method.What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not
Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows:CAPACITY SOURCE MONTH 1 MONTH 2 MONTH 3 MONTH 4 Labor Regular time 235 255 290 300 Overtime 20 24 26 24
The production planning period for mobile boards at Sime Factory, Egypt, is 4 months. Cost data are as follows:Regular-time cost per board E£100 Overtime cost per board E£120 Subcontracting cost per board E£150 Carrying cost per board per month E£ 5 For each of the next 4 months, capacity and
The production planning period for knobs at Al-Arabi Factory, Egypt, is 6 months. Cost data is as follows:Regular-time cost per knob E£50 Overtime cost per knob E£60 Subcontracting cost per knob E£70 Carrying cost per knob per month E£ 2 For each of the next 6 months, capacity and demand data
José Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a “showpiece” for display in Mexican restaurants. He needs to develop a 5-month aggregate plan. His forecast of capacity and demand follows:MONTH 1 2 3 4 5 Demand 150 160 130 200 210 Capacity
The manufacturer of outdoor paints at Jebel Ali, Dubai, has collected the following information regarding the capacities (in units) and demand forecast for the next 9 months.MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP Demand 2,000 1,800 2,000 1,800 2,000 1,600 1,400 2,000 1,500 Regular-time capacity
Maple Leaf Foundary, owned by Ahmet Satir, produces cast-iron ingots according to a 3-month capacity plan. The cost of labor averages $100 per regular shift hour and $140 per overtime (O.T.) hour. Inventory carrying cost is thought to be$4 per labor-hour of inventory carried. There are 50 direct
The James Lawson Chemical Supply Company manufactures and packages expensive vials of mercury. Given the following demand, supply, cost, and inventory data, allocate production capacity to meet demand at minimum cost using the transportation method. A constant workforce is expected.Backorders are
Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his three CPAs can together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours per month, he or she gets an additional
Refer to the CPA firm in Problem 13.23. In planning for next year, Cohen estimates that billable hours will increase by 10% in each of the 6 months. He therefore proceeds to hire a fifth CPA. The same regular time, overtime, and outside consultant(i.e., Forrester) costs still apply.a) Develop the
Evaluate the various configurations of operating and closed plants that will meet weekly demand. Determine which configuration minimizes total costs.
Discuss the implications of closing a plant. lop52 TABLE 13.9 Andrew-Carter, Inc., Variable Costs and Fixed Production Costs per Week FIXED COST PER WEEK VARIABLE COST PLANT (PER UNIT) OPERATING NOT OPERATING 1, regular time $2.80 $14,000 $6,000 1, overtime 3.52 2, regular time 2.78 12,000 5,000 2,
After researching revenue (yield) management in airlines, describe how the Magic system differs from that of American or other airline carriers. lop52
The Magic used its original pricing systems of several years ago and set the price for a Terrace V, Zone 103 seat at $68 per game.There were 230 such seats not purchased as part of season ticket packages and thus available to the public. If the team switched to the 7-price dynamic system
What are some concerns the team needs to consider when using dynamic pricing with frequent changes in price? lop52
The outputs from an S&OP process are:a) long-run plans.b) detail schedules.c) aggregate plans.d) revenue management plans.e) short-run plans. lop52
Aggregate planning is concerned with determining the quantity and timing of production in the:a) short term.b) intermediate term.c) long term.d) all of the above. lop52
Describe labor-planning policies 443
Identify the major issues in job design 444
Identify major ergonomic and work environment issues 448
Use the tools of methods analysis 449
Identify four ways of establishing labor standards 453
Compute the normal and standard times in a time study 455
Find the proper sample size for a time study 456
How would you define a good quality of work life? lop25
What are some of the worst jobs you know about? Why are they bad jobs? Why do people want these jobs? lop25
If you were redesigning the jobs described in Question 2, what changes would you make? Are your changes realistic? Would they improve productivity (not just production but productivity)? lop25
Can you think of any jobs that push the man–machine interface to the limits of human capabilities? lop25
How can labor specialization reduce the labor cost of operations? lop25
What are the differences among job enrichment, job enlargement, job rotation, job specialization, and employee empowerment? lop25
Define ergonomics. Discuss the role of ergonomics in job design. lop25
Explain the role of flow diagrams, process charts, activity charts, and operations charts in understanding and analyzing operations. lop25
What are the main purposes of setting labor standards? lop25
What are some of the uses to which labor standards are put? lop25
How do you classify the time for a machine operator who, between every job and sometimes in the middle of jobs, turns off the machine and goes for stock? lop25
The operator drops a part, which you pick up and hand to him. Does this make any difference in a time study? If so, how? lop25
Draw a process chart for receiving an order for a coffee, making the coffee, and handing it to the customer in a café. lop25
To make sandwiches at a Subway, the staff should make use of both hands very quickly and efficiently. Make an operations chart involved in making a sandwich. lop25
Develop a process chart for installing a new memory board in your personal computer. lop25
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