Mary who is operations manager at a furniture store has received the following estimates of demand requirements.
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Problem 13.9
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Mary who is operations manager at a furniture store has received the following estimates of demand requirements.
July Aug Sept Oct Nov Dec 1000 1200 1400 1800 1800 1600 -
Assuming stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate these two plans on as incremental cost basis.
- Plan A: Produce at a steady rate ( equal to minimum requirements) of 1,000 units per month and subcontract additional units at $60 per unit premium cost
- Plan B: Vary the workforce, which performs at a current production level of 1,300 units per month. The cost of hiring additional workers is $3,000 per 100 units produced. The cost of layoffs is $6,000 per 100 units cut back.
- Which plan is best and why?
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Assuming stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate these two plans on as incremental cost basis.
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Mary who is operations manager at a furniture store has received the following estimates of demand requirements.
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Problem 13.10
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Use problem above…..mary is considering two more mixed strategies. Using the data compare plans C and D with plans A and B and make a recommendation
- Plan C: Keep the current workforce steady at a level producing 1300 units per month. Subcontract the remainder to meet demand. Assume that 300 units remaining from June are available in July.
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Plan D- Keep the current workforce at a level capable of producing 1300 units per month. Permit a maximum of 20% overtime at a premium of $40 per unit. Assume that warehouse limitations permit no more than a 180 unit carryover from month to month. This plan keeps that any time inventories reach 180 the plant is kept idle. Idle time per unit is $60 per incremental unit.
Solution: Now we getPLAN C Period Demand Production Inventory (end of period) ($25) Sub contract ($60) June 1300 0 July 1000 1300 300 0 $7,500.00 August 1200 1300 400 0 $10,000.00 September 1400 1300 300 0 $7,500.00 October 1800 1300 0 200 $12,000.00 November 1800 1300 0 500 $30,000.00 December 1600 1300 0 300 $18,000.00 Extra Cost = $85,000.00
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Use problem above…..mary is considering two more mixed strategies. Using the data compare plans C and D with plans A and B and make a recommendation
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Problem 15.3
- The orange top cab company has a taxi waiting at each of four cabstands in Evanston illiniois. Four customers have called and requested service. The distances, in miles, from the waiting taxis to the customers are given in the following rable. Find the optimla assignment of taxis to customers so as to minimize total driving distances to the customers.
| Customer | ||||||
| Cab Site | A | B | C | D | ||
| Stand 1 | 7 | 3 | 4 | 8 | ||
| Stand 2 | 5 | 4 | 6 | 5 | ||
| Stand 3 | 6 | 7 | 9 | 6 | ||
| Sand 4 | 8 | 6 | 7 | 4 |
4) The following jobs are waiting to be processed at your work center, which cleans valve body castings. Job numbers are assigned sequentially upon arrival in the facility (a missing number means that job does not require your work center). All dates are specified as days from Today.
| Job | Due Date | Duration (days) |
| 101 | 43 | 10 |
| 102 | 34 | 12 |
| 104 | 37 | 11 |
| 107 | 32 | 7 |
| 108 | 37 | 15 |
a. In what sequence should the jobs be processed according to the FCFS scheduling rule?
b. In what sequence should the jobs be processed according to the EDD scheduling rule?
c. In what sequence should the jobs be processed according to the SPT scheduling rule?
d. In what sequence should the jobs be processed according to the LPT scheduling rule?
e. In what sequence should the jobs be processed according to the critical ratio scheduling rule?
Deliverable: Word Document
