New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
resource management for individuals
Production And Operations Management 3rd Edition Raymond R Mayer - Solutions
11-10 Describe the dispatching activity.
11-9 What shop forms must be prepared in order control, and what information do they contain?
11-8 What are the two basic procedures for the preparation of an operation schedule?
11-6 In what way is a determination made of the kinds and amounts of component parts that must be manufactured at this time for a specific order when the product involved is an assembly?-Y ~\ t>fl-7 How are factor-of-production requirements and the availability of these U ) factors determined?
11-5 How do production control personnel ascertain how an assembly is to be processed?
11-4 What forms can authorizations to produce assume? Answer this and all subsequent questions in this section with reference to order control.
11-3 What general information is contained in authorizations to produce?
11-2 What are the two basic production control systems? Under what conditions is each adhered to?
10-17 A combination of long lead time and high ordering cost permit a distributor of Christmas tree ornaments to place only one order to obtain a supply of a certain type of ornament for the season. The cost of the item is $10 per case; the selling price is $30 per case; and the selling expense
10-16 A florist can place only one order for a certain type of cut flower to satisfy the demand that will occur during a given weekend. He estimates that the demand, to the closest ten dozen, will assume one of the following values in the period under consideration:Demand, dozens 100 110 120 130
10-15 Sample calculations were given for 2 of the 16 values contained in the opportunity cost or regret matrix which appears on page 252. Show how the other 14 values were obtained.
10-14 Show how the 16 values contained in the profit matrix on page 251 were obtained.
10-13 On the basis of judgment and past experience, a firm derives the following demand schedule for one of its products:Demand per Probability month, units of occurrence 2,200 0.09 2,300 0.38 2,400 0.31 2,500 0.22 The product is shipped at a uniform rate during any one month. Further, the demand
10-12 The results of a specific application of Monte Carlo simulation are contained in the table shown on page 247. Suppose that the involved firm goes on to ascertain the consequences of a "two-week supply" ordering rule.What would be the resultant inventory pattern for the 10-week period
10-11 A department of the federal government uses stationery at a fairly uniform rate throughout the year. The annual demand is 720 packages, and the lead time is one-half month.It was determined that the most economic combination of order quantity and minimum inventory is 116 and 10 packages,
10-10 In a fixed-interval system of inventory control, what will the order quantity be under the following conditions?a The time between orders is 4 weeks, the specified safety stock is 500 units, the lead time is 1 week, the expected demand is 1,400 units per week, and the quantity on hand is
10-9 A firm manufactures a component part which is used by its assembly department at a uniform rate of 75 units per day. The manufacturing process is such that, when a lot is being manufactured, the items are delivered to the stockroom at a uniform rate of 100 units per day during the entire
10-8 The determination of economic minimum inventory levels when procurement times are expected to vary was discussed in the section beginning on page 241. It was pointed out that the first step in the procedure calls for converting variable procurement times into the equivalent demands during
10-7 The entire lot of a packaging material is delivered at one time and used at a uniform rate. Ordering costs are approximately $45 per order, and carrying costs for the resultant inventories are about $0.08 per unit per week. Stockout costs stemming from lost customer orders are estimated to be
10-6 A research institute receives a certain chemical at a rate of 80 gallons per day during the delivery period. Ordering costs are fixed at $32 per order.The procurement time is a constant five days. Carrying costs are $0,065 per gallon per day. Stockout costs, attributable to disrupted work
10-5 In the situation described in the preceding problem, suppose that the supplier of the magazine changes his policy regarding unsold copies. Specifically, it is revised to allow the vendor to return all unsold magazines at the end of a given month and receive a refund of $0.12 per copy. What
10-4 The unit purchase cost of a monthly magazine distributed by a vendor is$0.20, and the selling price is $0.50. At the end of a given month, the vendor receives no refund on any unsold magazines and simply discards them. The magazines are kept in stock for such a short time that the cost of
10-3 A company has decided to purchase a group of automatic machines of special design which have an estimated service life of five years. Spare parts can be obtained at this time and kept in stock, or they can be ordered at the time they will actually be needed. The estimated demand schedule for
10-2 The cost matrix on page 233 contains values which yielded the expected costs listed in the table that follows the matrix. Show how the nine matrix values and the three expected costs were obtained.
10-1 The profit matrix shown on page 231 contains nine profit values. The text contains the expressions for determining two of these values. Show how the other seven were obtained.
10-16 How can automatic data processing equipment be used in the area of inventory control?
10-15 What are some examples of operations, other than manufacturing, in which the need for controlling inventories exists?
10-14 Under what conditions would a firm be unable to employ quantitative methods of analysis in the area of inventory control?
10-13 Ordering rules under the condition of uncertainty can be selected on the basis of a maximin, maximax, or minimax criterion. Describe the methods for obtaining the values of each of these criteria and evaluate these respective approaches to the determination of order quantities.
10-12 How is the condition of uncertainty defined?
10-11 Evaluate Monte Carlo simulation as a decision-making tool in the area of inventory control.
10-10 What are the criteria, other than costs, in terms of which a company might evaluate the consequences, as determined by the simulation process, of an inventory decision rule?
10-9 What is Monte Carlo simulation? How is it applied in inventory control?
10-7 What is the difference between a fixed-order system and a fixed-interval system? What advantages does the latter have as compared with the former?10-8 How are order intervals and quantities determined in a fixed-interval system?
10-6 Describe and evaluate the method for determining the combination of lot size and safety stock which will minimize the total inventory cost when the demand for the item under consideration is not constant. When the procurement or lead time is not constant.
10-5 Why is it said that the problem of safety stock determination cannot be considered independently of the lot size involved?
10-4 What is the advantage of carrying safety stocks? The disadvantage?
10-3 Describe and evaluate the procedure for determining the quantity of an item that should be in stock at the beginning of a given period if the demand during the period can assume different specific values for which the respective probabilities of occurrence are known.
10-2 What is meant by the expected value of such things as demand, revenues, costs, and profits? How is this value determined?
10-1 How is the condition of risk defined?
9-11 The expected demand for a raw material during a future 12-month period is as follows:Demand, Demand, Month units Month units 1 180 7 130 2 220 8 360 3 190 9 110 4 140 10 280 5 270 11 250 6 210 12 160 The item is used at a uniform rate during any one month. Ordering costs are $40 per order. The
9-10 A distributor of small electrical appliances has his own repair department which services items returned by customers. A certain replacement part is common to many of the appliances. The demand for the part during a future six-week period is expected to be as follows:Demand, Demand, Week units
9-9 A company manufactures an item intermittently. When it does, the output is 200 units per day, and this quantity is delivered to the stockroom each day. The stockroom ships 40 units of the item every day.Ordering costs are $90 per order. Direct manufacturing costs are $60 per unit for lot sizes
9-8 A company purchases a part which is a component of one of the assemblies it manufactures. This component is used at a uniform rate throughout the year, and the supplier delivers the entire lot at one time. The manufacturer finds it necessary to take the following factors into consideration when
9-7 Compute the uniform annual cost that will be experienced if, to realize a quantity discount, the firm adheres to the 11,000-unit lot size in the situation depicted in Figure 9-6.
9-6 A company manufactures a component part for one of its assemblies. The part is processed at a rate of 500 units per day, and this quantity is delivered to the stockroom each day during the entire production run. The company's assembly department uses the part at a rate of 250 units per day, and
9-5 A bakery which supplies a large number of retail outlets uses an ingredient every day of the year at a rate of 2,000 pounds per day. When an order for the material is placed, the source delivers the item at a rate of 8,000 pounds per day over a time period whose length depends on the quantity
9-4 A manufacturer wants to calculate the economic lot size for one of his products.The entire manufactured lot is delivered to the stockroom at one time.Furthermore, the product is shipped to the firm's customers at a uniform rate of 100 units per day in each of the 250 days per year during which
9-3 A savings and loan association uses a certain form at a uniform rate of 60 pads per week during each of the 52 weeks per year it is in operation. Every replenishment order it places is delivered at one time. No minimum inventory is to be carried. Ordering costs are estimated to be $10 per
9-2 An oil refinery operates every day of the year. The entire lot of an item it produces intermittently is delivered to a warehouse at one time, from which it is shipped to the firm's dealers at a uniform rate. The warehouse's reorder point is 1,000 cases, which was arrived at by taking into
9-1 The inventory level of a product stocked by a distributor of pharmaceuticals is controlled by means of the maximum-minimum system. For control purposes, the firm divides each year into 13 four-week periods.The product under consideration is received from a supplier in lot sizes of 1,600 units,
9-9 How is the condition of certainty defined in the area of inventory control?
9-8 Describe the method for evaluating alternative rules of thumb. Why is it said that this method may not yield the optimum rule? What are the advantages and disadvantages of this method?
9-7 What are some examples of rules of thumb a company might apply to control inventories? Under what conditions would it be inclined to adopt such ordering rules?
9-6 What are the difficulties a firm can encounter in its attempt to derive and apply economic lot size formulas? How serious are these problems?
9-5 How is the economic lot size determined when a quantity discount is available?
9-4 Describe the steps in the development of an economic lot size formula.
9-3 What is the procedure for the determination of the economic lot size in the absence of an appropriate formula?
9-2 How are the reorder point and maximum inventory determined in this system?^ Why is a minimum inventory, or safety stock, maintained?
9-1 Describe, in general terms, the maximum-minimum system of inventory control.
8-8 A company is considering two alternative schedules for the production of a part which is a component of a number of different assemblies. The most economical operating plan for each of these schedules can be described as follows:Schedule 1 Schedule 2 Required investment $275,000 $340,000 Life 8
8-7 On the basis of a five-year sales forecast, a company has developed a number of alternative production schedules. For each of these, possible operating plans have been prepared. To illustrate, three such plans have been developed for one of the production schedules. The first calls for the
8-6 The required quantity of a given product can be manufactured in the week during which it is demanded. The sales forecast for the item for a future 10-week period is as follows:Demand, Demand, Week units Week units 1 650 6 820 2 1,040 7 250 3 1,310 8 1,660 4 520 9 950 5 1,480 10 1,720 a If the
8-5 The procurement time for an item sold by a men's clothing store is one month.At the beginning of a particular week, 28 units of the item are in stock. A replenishment order is expected in three weeks. For every unit demanded but not in stock, the store incurs a loss of $12. The actual demand
8-4 A hospital's annual rate of use of a pain reliever of a certain type is 60,000 tablets. The price of the item is $0.10 per unit when purchased in quantities of 1,000 units, $0.09 in quantities of 5,000, and $0.08 in quantities of 10,000.What annual purchase cost would each of these order
8-3 If a company produces in accordance with the expected demand for one of its products, the resultant inventories will be negligible. An alternative is to adopt a production schedule which will level out the demand for factors of production but will also generate an average inventory of 450
8-2 Approximately 60,000 units of an item are purchased per year by a mail-order firm. When 10,000 units are procured at a time, ordering and receiving costs are $72 per order. However, these costs increase by only 25 percent when the lot size is doubled. What will be the annual ordering and
8-1 It is estimated that 15,000 units of a given product will be manufactured during the coming year. Setup and production control costs are fixed at $36 per order.What will be the annual setup and production control costs if the item is produced in lot sizes of 500 units? Of 5,000 units?
8-9 What is the purpose of an inventory classification system such as the ABC method?
8-8 Describe the approach that can be employed to determine the production schedule which will minimize the sum of the resultant manufacturing and inventory carrying costs.
8-7 In what respect are production scheduling and inventory control interrelated?
8-6 How are relevant inventory costs defined?
8-5 What are some examples of factors that might either encourage or discourage the maintenance of higher inventories? Explain.
8-4 What factors encourage the firm to adopt production and procurement policies which bring about a decrease in average inventory levels? Explain why each does so.
8-3 What cost factors encourage the firm to adopt production and procurement policies which bring about an increase in average inventory levels? Explain why each does so.
8-2 Why does the typical company carry inventories of raw materials, component parts, and finished goods?
8-1 What is meant by inventory control?
7-9 Suppose that the original estimates given in the preceding problem are accurate.However, there is reason to believe that, if alternative X is selected, it will be succeeded at the end of its 10-year life by a method which will have a first cost of $300,000, a life of 10 years, a zero salvage
7-8 A firm is planning to manufacture a new product. If it does, it will do so by one of two alternative methods. These can be described in part as follows:Alternative X Alternative Y First cost $200,000 $500,000 Life 10 years 20 years Salvage value $ 20,000 $ 50,000 Annual revenues $110,000
7-7 Two different tractors are being considered for purchase by a landscaping firm. Both have an estimated life of four years. However, tractor A will have a first cost of $10,000, whereas the cost of tractor B is $8,000. Annual disbursements for such things as labor, maintenance, repairs, and
7-6 A cleaning establishment is going to install one of two types of air-conditioning systems. These alternatives can be described as follows:Type 1 Type 2 First cost $6,000 $8,000 Service life 8 years 12 years Salvage value $ 500 $ 500 Annual disbursements $1,400 $ 900 At an annual interest rate
7-5 In the preceding problem, suppose that the analyst chooses not to make the assumption that the nature of future replacements is such that the respective calculated uniform annual costs will continue until the same point in time is reached with each alternative. Instead, he estimates that, if
7-4 A proposal has been submitted which calls for the replacement of a packaging line by new facilities. If the new equipment is procured, the old facilities will be sold for $20,000. The new equipment involves a purchase price of $97,000 and an installation cost of $3,000. Other relevant data are
7-3 A methods analysis has been made of a certain activity at a cost of $750. It is proposed that changes be made in the existing method which will yield an annual saving in material costs of $2,400. Furthermore, the man-hours required for the activity could be reduced by 320 per year which would
7-2 A stockbroker may decide to install an automatic data processing system.The equipment involved can be either leased or purchased.The leasing arrangement would call for an annual rental charge of $84,000,which includes the cost of maintenance. If purchased, the same equipment would have a first
7-1 An analysis has been made of the layout of a large department store, and three alternate layouts have been developed. Adoption of any one of them will entail an expense, because departments and facilities within departments will have to be relocated and rearranged. However, each is expected to
7-8 Evaluate the uniform annual cost approach to the determination of the most economical investment alternative.
7-7 Define irreducible factors. How do they enter into the decision-making process?Under what conditions do they assume a major role? Give some examples of these factors and explain how each would affect the firm's choice of alternative.
7-6 What factors should the firm take into consideration when determining its rate-of-return requirement?
7-5 It has been mentioned that, on occasion, revenues and certain costs can be ignored when comparing investment alternatives. When is this possible, and under what conditions would it be permissible to do so? What are the advantages of being able to do so?
7-4 When all the revenues and costs generated by an alternative have been taken into consideration, what is the significance of a calculated total annual cost of zero? Of a positive total annual cost? Of a negative total annual cost?Explain.
7-3 Why is it necessary to consider equal time periods when comparing investment alternatives?
7-2 How is the uniform annual equivalent of the following found: (a) initial investment in an alternative, (b) future salvage value of an asset, and (c) nonuniform annual revenues or disbursements?
7-1 Describe in general terms the uniform annual cost method for the evaluation of investment alternatives.
6-18 A farm equipment dealer is considering renting storage space for a period of 10 years. The terms of the lease call for a payment of $20,000 at the beginning of each year for the first four years and $30,000 at the beginning of each year for the last six years. At an interest rate of 10 percent
6-17 In the preceding problem, suppose that management wants to find a uniform series of beginning-oi-year payments that is equivalent to the required initial expenditure. What would this be? (Ans. $62,705)
6-16 To level out expected demand schedules for factors of production, a company is giving consideration to the production of a new item whose nature is such that it will probably be in demand for only seven years. The cost of introducing the product at this time is expected to be about $300,000.
6-15 In a given company, subcontracting costs are expected to total $44,000 a year for the next four years. If these are treated as if they will occur at the end of each year and the appropriate interest rate is 6 percent compounded annually, what single payment at the present time is equivalent to
6-14 What is the maximum justifiable investment in a methods improvement which will save a public utility $16,000 in labor costs at the end of each year for five years? The company's rate-of-return requirement is 15 percent per year. (Ans. $53,632)
6-13 A publishing firm is going to invest $90,000 now, at 10 percent per year, to provide for bonuses for its editors at the end of each year for the next three years. What maximum uniform amount can be withdrawn for this purpose at the end of each year? After having determined this, calculate the
Showing 300 - 400
of 3756
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last
Step by Step Answers
Get 50% OFF
Claim Now
