Although the BackPack Company has always used a level aggregate plan, Jill is interested in evaluating chase aggregate plans also. She has asked you to calculate how many hires and fires would be necessary to adjust capacity to meet demand exactly each period. If necessary, incur some undertime. Calculate the number of workers needed each period. Problem Data Cost data Regular-time labor cost per hour $10.00 Overtime time labor cost per hour $15.00 Subcontracting cost per unit (labor only) $84.00 Holding cost per unit per period $10.00 Back-order cost per unit per period $20.00 Hiring cost per employee $600.00 Firing cost per employee $450.00 Capacity data Beginning workforce 210 employees Beginning inventory 400 units Labor standard per unit 6 hours Regular time available per period 160 hours Overtime available per period 32 hours Subcontracting maximum per period 1000 units Subcontracting minimum per period 500 units Demand data Period 1 6000 units Period 2 4800 units Period 3 7840 units Period 4 5200 units Period 5 6560 units Period 6 3600 units
> Your new company has decided to use a periodic review system. You have learned that average weekly demand is 48 units per week with a standard deviation of 8 units. You believe that your cycle-service level should be 94 percent. Lead time is two weeks. I
> Next week is a three-day weekend. Barb believes that she will need a minimum of six employees on Friday, Saturday, and Sunday. The other days will still need a minimum of three workers. Remember that Barb wants each employee to have two consecutive days
> Kaizer Plastics produces a variety of plastic items for packaging and distribution. One item, container #145, has had a low contribution to profits. Last year, 20,000 units of container #145 were produced and sold. The selling price of the container was
> Barb’s Beach Bar operates seven days per week. Barb uses only full-time employees and wants each employee to have two consecutive days off each week. She believes that she needs a minimum of three employees on Monday, Tuesday, Wednesday, Thursday, and Su
> Raquel has asked you to develop a sequence that minimizes makespan for the sequence of jobs given in Problem 13. Compare the makespan, mean job flow time, and average number of jobs in the system to your results in Problems 13 and 14.
> Henri recently learned about global priority rules. He is interested in the slack over remaining operations (S/RO) rule. a) Using the data in Problem 5, determine the sequence Henri should follow if he uses the S/RO priority rule. b) Based on the sequenc
> In an effort to be fair to his customers, Henri has decided to use the FCFS (first come, first served) priority rule. Using the job data from Problem 5, assume that the jobs arrive in order—that is, A first, then B, then C. a) Using the data in Problem 5
> Henri has heard of the LPT (longest processing time) priority rule and wonders how that would change the sequence of the jobs listed in Problem 5. a) Determine the sequence Henri should follow if he uses the LPT priority rule. b) Based on the sequence de
> Henri has decided to try a different priority rule. a) Using the data in Problem 5, determine the sequence Henri should follow if he uses the EDD (earliest due date) priority rule. b) Based on the sequence developed in part (a), calculate the following p
> Henri’s Custom Gowns has six jobs waiting to be processed. Each gown is at the beading work center. The job information is shown here. Job Job Time (in days) Days until Due Job Time at Other Work Centers Operations Remaining at Other Work Centers
> Jack has asked you to calculate the following for Work Center 2. a) Calculate the percentage of planned output needed to complete the planned inputs (planned input + backlog/planned output) at Work Center 2. b) Calculate the percentage of planned input t
> Tax Preparers, Inc. works 250 days per year. The company uses adding machine tape at a rate of eight rolls per day. Usage is believed to be normally distributed with a standard deviation of three rolls during lead time. The cost of ordering the tape is $
> Based on your concerns, Jack has gathered the following information for Work Center 2, the work center that directly feeds Work Center 3. Complete the input/output analysis of Work Center 2. Input Information (in hours) 4 5 6 7 8 Planned inp
> Since Jack believes that Work Center 3 is his bottleneck, he has asked you to do the following: a) Calculate the percentage of planned output needed to complete the planned inputs (planned input + backlog/ planned output) at Work Center 3. b) Calculate t
> Harrison Hotels is considering adding a spa to its current facility in order to improve its list of amenities. Operating the spa would require a fixed cost of $25,000 a year. Variable cost is estimated at $35 per customer. The hotel wants to break even i
> Jack, the owner and manager of Jack’s Box Company, wants to monitor usage at Work Center 3, which is a bottleneck in the system. He has collected data on the planned and actual input and output. Input Information (in hours) 4 5 6 7 8 Planned
> During the winter, no concerts are given in the park. Bill believes that he needs a minimum of four employees every day of the week. Develop a workforce schedule for Bill that allows each employee two consecutive days off each week. Compare the number of
> Using the information in Problem 25, determine the minimum lead time to satisfy a new order for the Gamma Blaster. Determine the minimum lead time required to satisfy a new order for the Gamma Disaster. Problem 25: The Gamma Ray Company produces two pro
> In an effort to increase capacity in Work Center 111 for week 13, Yankee Machine Shop has authorized overtime. The work center will be staffed 12 hours per day for six days. Because of the additional stress on the three machines, it is expected that the
> In week 13, the Yankee Machine Shop, has the following orders scheduled for Work Center 111. Calculate the capacity needed. Orders Quantity Setup Time (hours) Run Time per Piece (hours) MM078 100 4.0 0.3 MM118 250 6.0 0.1 MM213 100 3
> Unfortunately, after extending the work day from eight hours to ten hours, the Yankee Machine Shop has noted that efficiency has decreased to 80 percent. Given this new piece of information, is there enough capacity to complete the orders given in Proble
> The Yankee Machine Shop has decided to schedule its workforce to work ten hours per day, five days per week. Does this new policy provide enough capacity to complete the orders shown in Problem 19?
> Using the information provided in Problem 20, a) Calculate the economic order quantity for each item. (Round to the nearest whole number.) b) Calculate the company’s maximum inventory investment throughout the year. c) Calculate the company’s average inv
> The Yankee Machine Shop currently has three machines working in Work Center 111, eight hours per day, five days per week, a utilization rate of 90 percent, and an efficiency rate of 90 percent. a) Calculate the available capacity. b) Is the available cap
> The Yankee Machine Shop has the following orders scheduled in Work Center 111 for week 12. Calculate the capacity needed. Orders Quantity Setup Time (hours) Run Time per Piece (hours) LL110 10 2.0 1.2 LL118 25 4.0 0.4 LL131 100 6.0
> Use the planned orders generated in Problem 11. Calculate the average inventory records if the company decides to switch the lot size rule for AB511 and AB521 to lot-for-lot. Compare the number of replenishment orders using the new lot size rules.
> Perfect Furniture is a manufacturer of kitchen tables and chairs. The company is currently deciding between two new methods for making kitchen tables. The first process is estimated to have a fixed cost of $80,000 and a variable cost of $75 per unit. The
> Calculate the minimum replenishment time for the Model A fountains given the beginning inventories. Component Immediate Parent Usage per Parent Lead Time (weeks) Beginning Inventory A none - 1 0 B A 2 2 250 C A 1 6 500 D A
> Using the information given and assuming that 2500 Model A fountains are scheduled for completion, calculate the gross requirements of each component. Use the beginning inventories given. Component Immediate Parent Usage per Parent Lead Time (weeks)
> Flora is preparing for her busy season and is building 2500 Model A fountains. Calculate the gross requirements for each component assuming that there is no beginning inventory. Component Immediate Parent Usage per Parent Lead Time (weeks) Beginning
> Using the information given, calculate the replenishment time when no beginning inventory exists. Component Immediate Parent Usage per Parent Lead Time (weeks) Beginning Inventory A none - 1 0 B A 2 2 250 C A 1 6 500 D A 3
> Flora’s Fabulous Fountains’ (FFF) top product is its Model A. Using the information given, draw the product structure tree for the Model A. Component Immediate Parent Usage per Parent Lead Time (weeks) Beginning Inventory A none - 1 0 B A
> Using the given information and the beginning inventories from Problem 4, calculate the minimum replenishment time for the 100 Q Models. Item Usage per Parent Load Time (weeks) Q - 2 R 2 3 S 1 4 T 3 2 X 2 3 Y 1 2 V 1
> Given the following list of items, a) Calculate the annual usage cost of each item. b) Classify the items as A, B, or C. Item Annual Demand Ordering Cost ($) Holding Cost (%) Unit Price ($) 101 500 10 20 0.5 102 1500 10 30 0.2 103
> Using the given information, calculate the gross requirements for each of the components when the company plans to build 100 of its Q Models if you have these inventories: 150 units of component T and 200 units of component R. Item Usage per Parent Lo
> Using the given information, calculate the gross requirements for each of the components if the company plans to build 100 of its Q Models. Assume that there are no beginning inventories. Item Usage per Parent Load Time (weeks) Q - 2 R 2 3
> Using the given information, calculate the replenishment lead time for the Q Model assuming that you have no beginning inventories. Item Usage per Parent Load Time (weeks) Q - 2 R 2 3 S 1 4 T 3 2 X 2 3 Y 1 2 V 1 3
> Will’s Welded Widgets (WWW) makes its Q Model from components R, S, and T. Component R is made from two units of component X and one unit of component Y. Component T is made from one unit of component V and three units of component Z. Draw the product st
> Slick Pads is a company that manufactures laptop notebook computers. The company is considering adding its own line of computer printers as well. It has considered the implications from the marketing and financial perspectives and estimates fixed costs t
> Using the planned orders generated in Problem 17, complete inventory records for components AB501, AB511, and AB521. Use the lot size rule, lead time, and usage information given in Problem 12.
> Fill in the partially completed inventory record shown here. Item: AB500 Lot Size Rule: FOQ = 3 Lead Time: 2 weeks Parent: None Children: AB501, AB511, AB521 1 2 3 4 5 Gross Requirements: 150 250 150 Scheduled Receipts:
> Using the planned orders generated in Problem 15, complete the inventory record for components AB501, AB511, and AB521. Use the lot size rule, lead time, and usage information given in Problem 12. Indicate any problems that occur.
> Using the information given, fill in the partially completed inventory record shown here. Item: AB500 Lot Size Rule: FOQ = 200 Lead Time: 2 weeks Parent: None Children: AB501, AB511, AB521 1 2 3 4 5 Gross Requirements: 150 250 150
> Using the inventory records completed in Problem 12, calculate the average inventory level of AB501, AB511, and AB521. Problem 12: Component Lot Size Rule Time (weeks) Lead Usage Factor Beginning Inventory AB501 L4L 2 2 1100 AB511 FOQ = 3
> The Office of Tourism (Problem 18) has decided to heavily promote local events this year and anticipates more tourists this season. Sue has changed the probability of selling different quantities of calendars as shown. Given the new probabilities, determ
> Using the planned orders generated in Problem 11, complete inventory records for components AB501, AB511, and AB521. The lot size rule, lead time, and usage information are shown here. Component Lot Size Rule Time (weeks) Lead Usage Factor Beginning
> Fill in the partially completed inventory record shown here. Item: AB500 Lot Size Rule: L4L Lead Time: 2 weeks Parent: None Children: AB501, AB511, AB521 1 2 3 4 5 Gross Requirements: 150 250 150 Scheduled Receipts: P
> The Gamma Ray Company produces two products, the Gamma Blaster (GB) and the Gamma Disaster (GD). Each product is made from three components: A, B, and C. The Gamma Blaster is made from the following components: A (2), B (3), and C (4). The Gamma Disaster
> Calculate the size of the workforce needed for the company to meet average weekly demand.
> Tasty Ice Cream is a year-round take-out ice cream restaurant that is considering offering an additional product, hot chocolate. Considering the additional machine it would need plus cups and ingredients, it estimates fixed costs to be $200 per year and
> Last week a painter painted three houses in five days. This week she painted two houses in four days. In which week was the painter more productive?
> Concerned about the welfare of its workers, Draper has decided to try a strategy without any overtime. Instead of overtime, Draper has decided to supplement the permanent workforce of 12 employees with temporary workers. Any temporary worker must work th
> Develop a chase aggregate plan for Draper using a permanent workforce of 12 employees supplemented by overtime. All demand must be met each period. a) Show what would happen if this plan were implemented. b) Calculate the costs associated with this plan.
> Develop a chase aggregate plan using hires and fires to adjust the capacity for Draper. All demand must be met each period. a) Show what would happen if this plan were implemented. b) Calculate the costs associated with this plan. c) Evaluate the plan in
> The local Office of Tourism sells souvenir calendars. Sue, the head of the office, needs to order these calendars in advance of the main tourist season. Based on past seasons, Sue has determined the probability of selling different quantities of the cale
> Develop a level aggregate plan for the Draper Company if no back orders are permitted. a) Show what would happen if this plan were implemented. b) Calculate the costs associated with this plan. c) Evaluate the plan in terms of cost, customer service, ope
> Develop a level aggregate plan for the Draper Tax Company if back orders are permitted. a) Show what would happen if this plan were implemented. b) Calculate the costs associated with this plan. c) Evaluate the plan in terms of cost, customer service, op
> Jill wants you to consider a hybrid aggregate plan, using up to the maximum overtime per employee for any period where demand cannot be satisfied with the current regular-time production and the available inventory. Back orders can occur. a) Show what wo
> Jill Nicholas believes there must be a better aggregate plan. She has suggested a hybrid plan, using a permanent workforce of 195 employees and subcontracting as needed. Once again, Jill has requested that you provide the following information: a) Calcul
> Jill Nicholas is concerned about BackPack’s corporate image and has decided against using hires and fires. Instead, she has asked you to consider a chase aggregate plan using the current workforce supplemented by either overtime or undertime to change ca
> Now that you have calculated the number of workers needed each period in Problem 3, Jill wants to see how the plan would actually work. You need to: a) Show what would happen if this plan were implemented. b) Calculate the costs associated with this plan
> Jill has decided that the BackPack Company must have very good customer service. She has asked you to develop a level aggregate plan using inventories but not back orders. All demand must be met each period. You must: a) Calculate the aggregate productio
> Med-First is a medical facility that offers outpatient medical services. The facility is considering offering an additional service, mammography screening tests, on-site. The facility estimates the annual fixed cost of the equipment and skills necessary
> The BackPack Company produces a line of backpacks. The manager, Jill Nicholas, is interested in using a level aggregate plan. Inventories and back orders will be used to handle demand fluctuations. She has asked you to develop such a plan. Problem Data
> W. C. Sanders, owner of Fort Engines, a producer of heavy-duty snow blower engines, needs to develop an aggregate plan for the coming year. The company currently uses 20 individuals working 160 regular-time hours each month. Each worker is capable of pro
> In an effort to reduce its inventory, Rapid Grower is offering Greens, a local nursery (Problems 12 and 13), two additional price breaks to consider. If the nursery orders a three-month supply, the cost per bag is $16. If Greens orders a six-month supply
> Lissette Jones, the materials manager for an upscale retailer, wants to measure her customer service level. She has collected the following representative data. Order Number Number of Line Items Dollar Value of Order 1 4 1000 2 8 1440 3
> Greener Pastures Incorporated (GPI) produces a high-quality organic lawn food and weed eliminator called Super Green (SG). Super Green is sold in 50-pound bags. Monthly demand for Super Green is 75,000 pounds. Greener Pastures has capacity to produce 24,
> Using the data provided in Problem 23, determine what will happen if HP uses the economic production quantity model to establish the quantity produced each cycle. a) Calculate the economic production quantity (EPQ). b) Calculate the maximum inventory lev
> Healthy Plants Ltd. (HP) produces its premium plant food in 50-pound bags. Demand for the product is 100,000 pounds per week. HP operates 50 weeks per year and can produce 250,000 pounds per week. The setup cost is $20 and the annual holding cost rate is
> Using the information in Problem 16, calculate the following: a) The economic order quantity b) The total annual costs using the EOQ ordering policy c) The penalty costs Sam is incurring by using his current policy
> Sam’s Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The shop operates 52 weeks per year, and weekly demand is 150 filters Sam estimates that it costs $20 to place an order and his annua
> Custom Computers, Inc. from Problem 9 is considering a new ordering policy. The new order quantity would be 650 heat sinks. Recalculate Problem 9, parts (a) through (e), and compare results.
> Oakwood Outpatient Clinic is analyzing its operation in an effort to improve performance. The clinic estimates that a patient spends on average 3.5 hours at the facility. The amount of time the patient is in contact with staff (i.e., physicians, nurses,
> Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1300 units. Annual demand is 5200 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cos
> My Kitchen Delights (MKD) is considering two new suppliers for the jars used in the production process. The quality at both suppliers is equal. Assume that the annual holding cost is 30 percent of the unit price. Monthly demand averages 20,000 jars. Orde
> Students in an operations management class have been assigned six similar computer homework problems. Alexis needed 40 minutes to complete the first problem. Assuming an 80 percent learning curve, how much total time will Alexis need to complete the assi
> Based on the standard time calculated in Problem 8, how many units should an employee operating at 100 percent of standard complete during an eight-hour workday?
> The Arkade Company is considering switching to a 15 percent allowance based on time worked. Calculate the new standard time for each work element and for the total job.
> Based on the standard time calculated in Problem 6, how many units should an employee operating at 100 percent of standard complete during an eight-hour workday?
> In a further attempt to liquidate its inventory, Rapid Grower has offered Greens, the local nursery, an option to buy the entire year’s supply at one time. The cost per bag would be $12. Should Greens take advantage of this offer?
> The Arkade Company has decided to use a 15 percent allowance factor based on job time. Calculate the standard time for each work element and for the total job.
> Using the information in Problem 1, determine the sample size needed if the standard time estimate is to be within 5 percent of the true mean 99 percent of the time. Problem 1: Work Element Standard Deviation (minutes) Mean Observed Time (minutes)
> Given the following information, determine the sample size needed if the standard time estimate is to be within 5 percent of the true mean 97 percent of the time. Work Element Standard Deviation (minutes) Mean Observed Time (minutes) 1 0.20 1.10
> You need to develop a labor time estimate for a customer order of 20 network installations. It is estimated that the first installation will require 60 hours of labor, and a learning curve of 90 percent is expected. a) How many labor-hours are required f
> Draw a process flow diagram of your last doctor’s office visit. Identify bottlenecks. Did any activities occur in parallel?
> Your 20 observations of Dr. Knowitall reveal the following information. Assume that the estimate is to be within 5 percent of the true proportion 95 percent of the time. Activity Observed Number of Times Observed With patient 6 Reviewing test re
> As a class project you have been asked to project the proportion of time a professor spends on various activities. You have decided to use the work-sampling method. Your initial observations are shown. Activity Observed Number of Times Observed Grad
> You are given the following information. Element (in minutes) Observations 1 2 3 4 5 Cycle 1 0.58 1.50 0.79 0.30 Cycle 2 0.61 0.75 0.35 Cycle 3 0.59 0.73 0.33 Cycle 4 0.54 0.72 0.35 Cycle 5 0.60 1.40
> You have 25 observations of university policeman Sgt. Jack B. Nimble during his normal workday. The results are shown here. Assume that the estimated proportion is to be within 5 percent of the true proportion 95 percent of the time. Activity Observed
> The following information is provided to you for each of five elements performed in building the Aviator model, a basic universal remote control. Work Element Mean Observed Time (minutes) Performance Rating Factor Frequency 1 0.96 0.96 1.0 2
> A local nursery, Greens, uses 1560 bags of plant food annually. Greens works 52 weeks per year. It costs $10 to place an order for plant food. The annual holding cost rate is $5 per bag. Lead time is one week. a) Calculate the economic order quantity. b)
> Frank’s Fabricators has collected the following information to develop a standard time for producing their high-volume Navigator III, a universal remote control. All of the times are in minutes. Element Observations 1 2 3 4 5 6 Cycle 1 1
> Jake’s Jumbo Jacks has collected the following information to develop a standard time for building jumbo jacks. Element (in minutes) Observations 1 2 3 4 5 Cycle 1 2.18 1.25 1.70 2.74 1.57 Cycle 2 2.22 1.23 1.75 2.66 1.55 Cy
> Compare the two standards calculated in Problems 6 and 8. What other factors should be considered in selecting the method for determining the allowance factor?
> Calculate the normal time for each of the work elements. Work Element Mean Observed Time (minutes) Performance Rating Factor 1 1.20 0.95 2 1.00 0.85 3 0.80 1.10 4 0.90 1.10
> Using the information in Problem 3, calculate the sample size needed if the standard time estimate is to be within 5 percent of the true mean 99 percent of the time. Calculate the percentage increase in sample size for the higher precision. Problem 3:
> George Fine, owner of Fine Manufacturing, is considering the introduction of a new product line. George has considered factors such as costs of raw materials, new equipment, and requirements of a new production process. He estimates that the variable cos
> Using the following information, determine the sample size needed if the standard time estimate is to be within 5 percent of the true mean 95 percent of the time. Work Element Standard Deviation (minutes) Mean Observed Time (minutes) 1 0.60 2.40
> Your company has received an order for 20 units of a product. The labor cost to produce the item is $9.50 per hour. The setup cost for the item is $60 and material costs are $25 per unit. The item is sold for $92. The learning rate is 80 percent. Overhea