OSCM: Chapter 13 & 14

Exhibit 13-3. Wiedmer Corpora"on is preparing an aggregate produc"on plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other cri"cal data: Produc"on cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the inventory carrying cost of a chase plan accomplished through hiring and firing? 1 / 1 point Regular Ending Workers Month Demand Produc"on Over"me Inventory Required Hire Fire 1 1,000 1,200 1,500 1,300 2 3 4 Total

$2,000

Exhibit 13-3. Wiedmer Corpora"on is preparing an aggregate produc"on plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other cri"cal data: Produc"on cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the regular monthly actual production for a level plan? Regular Ending Workers Month Demnd Produc"on Over"me Inventory Required Hire Fire 1 1,000 1,200 1,300 1,500 2 3 4 Total

1,250

Using the BOM, if 2 units of A are needed, how many used of K will be required? Assume that there is no on- hand inventory of any items.

104

End item A is made by assembling 2 parts of B and 4 parts of C. Part C is made from 3 parts of D and 2 parts of E. Gross requirements for end item A are 100 units. What is the net requirement for part C? Units onhand of Inventory End Item A 50 Part B Part C Part D {art E 30 75 100 75

125 units

Exhibit 13-3. Wiedmer Corpora"on is preparing an aggregate produc"on plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other cri"cal data: Produc"on cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the total cost of a chase plan which uses only hiring/firing? Regualr Ending Workers Month Demand Produc"on Over"me Inventory Required Hire Fire 1 1,000 2 ,1200 3 1,500 4 1,300 Total

$257,000

Exhibit 13-3. Wiedmer Corpora"on is preparing an aggregate produc"on plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other cri"cal data: Produc"on cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the total cost of the level plan? Regular Ending Workers Month Demand Produc"on Over"me Inventory Required Hire Fire 1 1,000 2 1,200 3 1,500 4 1,300 Total

$260,700

Jones Company uses widgets as component parts. In a particular week it has gross requirements for 250 units of widgets, beginning inventory of 50 widgets, and scheduled receipts of 350 widgets. Available inventory for the next period is:

150

Exhibit 13-2 Zanda Corpora"on is preparing an aggregate produc"on plan for its product for the next four months. The company's expected monthly demand is given in the following chart. The company will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month. Following is other cri"cal data: Produc"on cost per unit = $125 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $50 Firing cost per worker = $100 Beginning number of workers = 25 Each worker can produce 25 units per month. What is the total cost of a CHASE plan (using hiring/firing)? Regular Ending Workers Monthr Demand Produc"on Over"me Inventory Required Hire Fire 1 600 2 800 3 700 4 900 Total 3,000

$380,300

Exhibit 13-2 Zanda Corpora"on is preparing an aggregate produc"on plan for its product for the next four months. The company's expected monthly demand is given in the following chart. The company will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month. Following is other cri"cal data: Produc"on cost per unit = $125 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $50 Firing cost per worker = $100 Beginning number of workers = 25 Each worker can produce 25 units per month. The total inventory carrying cost of a chase plan is: Regular Ending Workers Month Demand Produc"on Over"me Inventory Required Hire Fire 1 2 3 4 Total 600 800 700 900 3,000

$4,000

Exhibit 13-4 Dave's Stove-Top Popcorn currently has three full-"me employees who are each paid $1,500 per month. An employee can only work a maximum of 100 hours per month because produc"on normally takes place at night. They do receive $1,500 even if they do not work 100 hours, however. Part-"me employees can be hired at a cost of $25 per hour. Dave's Stove-Top Popcorn has forecasted that demand for the next six months will be as follows. What is the total cost if Dave hires one more full-time employee to meet additional demand? Month 1 2 3 4 5 6 Hours Needed 380 280 450 420 520 390 Full-"me Hours Part-"me Hours

$40,750

Exhibit 13-1 Jones Corpora"on is preparing an aggregate produc"on plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other cri"cal data: Produc"on cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that "me. of a LEVEL plan? Regular Ending Workers Quarter Demand Produc"on Over"me Inventory Required Hire Fire 1 4,000 2 6,000 3 3,000 4 7,000 Total 20,000

$5,140,000

Exhibit 13-1 Jones Corpora"on is preparing an aggregate produc"on plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other cri"cal data: Produc"on cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that "me. Given this data, what is the inventory carrying cost of a LEVEL plan? 0 / 1 point Regular Ending Workers Quarter Deamnd Produc"on Over"me Invenotry Required Hire Fire 1 2 3 4 Total 4,000 6,000 3,000 7,000 20,000

$70,000

Exhibit 13-3. Wiedmer Corpora"on is preparing an aggregate produc"on plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other cri"cal data: Produc"on cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the total inventory carrying cost for the level plan? Regular Ending Workers Month Demand Produc"on Over"me Inventory Required Hire Fire 1 1,000 2 1,200 3 1,500 4 1,300 Total 5,000

$8,000

Exhibit 13-1 Jones Corpora"on is preparing an aggregate produc"on plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other cri"cal data: Produc"on cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that "me. If Jones prefers a level plan, what will be the regular produc"on rate per quarter? Quarter Demand 1 2 3 4 4,000 6,000 3,000 7,000 20,000

5,000 units

A master production schedule shows the following information. Based on the information in the MPS, what is the amount that is available to promise in week 4? MPS Week Week Week Week Beginning Inventory = 300 Forecast 1,000 1,200 1,300 1,200 Actual Customer Orders 1234 800 1,000 800 700 Ques#on 42 0 / 1 point Projected On-hand Inventory 0000 Available to Promise MPS

500

A master production schedule shows the following information. Using a lot-for-lot rule, what is the MPS quantity for week 4? MPS Week Week Week Week Beginning 1234 Forecast 500 550 400 500 Inventory = 100 Actual Customer orders 550 600 500 450 Projected onhand Inventory Available to Promise MPS

500

An MRP record for a motor is shown in the following table. What is the planned order release for week 4? MRP Record: Part Name: Motor Lead Time = 2 weeks On-hand Inventory = 500 Safety Stock = 100 Order quan"ty = LFL Gross Requirements Scheduled Receipts Available Inventory Net Requirements Planned Order Receipts Planned Order Releases Week Week Week Week Week Week Week Week 12345678 6,000 8,000 10,000 10,000 10,000 8,000 6,000 8,000 5,600 8,000 500 100

8,000

Advanced planning and scheduling systems:

A and C

Which of the following is true concerning sales and operations planning?

A benefit of the process is that the firm should achieve high service levels with lower inventory

Thefollowingtableshowscapacityrequirementsdataformakingtabletops. WhichofthefollowingisTRUE? Processing Time per unit = 10 minutesDay 1Day 2Day 3Day 4Day 5 Planned Order Releases (units) 40 46 40 54 50 Processing Load (hours) Available Cpapcity (hours) 8 8 8 8 8

All of the excess demand in days 4 and 5 can be shifted to day 3

Which of the following is NOT one of the costs considered in aggregate production planning?

Capital equipment cost

Significant changes in an MPS quantity several weeks into the planning horizon can:

Cause inconsistencies in the MRP

The longest lead time path in the BOM is the:

Cumulative lead time

The positioning and replenishment of finished goods inventories at the retail level can be determined using:

DRP

Zanda Company is looking for a requirements planning system to help plan replenishment of its finished goods throughout its network of distribution centers. The type of system Zanda should consider is known as:

DRP

Software that consolidates all of the business planning systems and data throughout an organization is:

ERP

Benefits of ERP systems include all of the following EXCEPT:

Easy implementation

End item A is made by assembling 2 parts of B and 4 parts of C. Part C is made from 3 parts of D and 2 parts of E. Gross requirements for end item A are 100 units. What is the gross requirement for part E? UNits on-hand in Inventory End Item A 50 Part B 30 Part C 75 Part D 100 Part E 75

250

The focus of an aggregate production plan, in general, is on all of the following EXCEPT:

Facilities and capital equipment rather than labor and inventory

John Jones, senior VP for Zanda Corp., is looking at three alternative aggregate production plans for the next six- month period. At his company, demand varies by month with substantial month-to-month differences. The three alternatives are a "pure level plan," which keeps an absolutely constant workforce, a "pure chase plan" relying on hiring and layoffs, and a hybrid plan. He is most likely to find that the hybrid plan:

Has lower inventory carrying cost than the level plan and lower hiring/layoff cost than the chase plan.

If a company strongly prefers that its aggregate output plan be closer to a level plan than a chase plan, this implies that it is concerned about minimizing:

Hiring and layoff costs

If a make-to-stock manufacturing firm with highly seasonal demand follows a level production strategy, which of the following is likely to be true?

Inventory will fluctuate significantly during the year

Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true?

Jones will have lower inventory carrying costs

End item A is made by assembling 2 of part B and 3 of part C. Part C is made from 2 of component D and 2 of component E. Component D is considered to be a:

Level 2 input

A bill-of-materials file contains:

Lists of materials required to produce end item products

Which of the following is an advantage of a chase production strategy (as compared to a level plan)?

Lower inventory investment

The quantities of end items to be completed in each time period into the future is shown in a(n):

MPS

The quantities of end items to be completed in each time period into the future is shown in a(n):

Net requirements

Materials requirement planning (MRP) systems are used primarily to:

Plan materials

Which of the following is NOT an input into the MRP?

Planned order release

MRP is a process that would be most applicable in which situation?

Planning requirements for bicycle seats in a bicycle production plant

Rough-cut capacity planning does all of the following EXCEPT:

Recalculates the MRP plan

Each month the sales and operations team at Johnson Company meets to develop plans for each of the next six months. This process is known as:

Rolling planning horizons

Generally speaking, the sales function and operations function differ in objectives. Which of the following is NOT one of those differences?

Sales prefers detailed forecasts for setting bonuses, operations prefers aggregate forecasts

Planning for which of the following products would see the LEAST benefit from the use of an MRP system?

Shampoo

Constant changing of the master schedule and the resulting changes in the requirements for components is referred to as:

System nervousness

Decisions being made about the aggregate production plans represent what type of planning?

Tactical planning

If a make-to-stock manufacturing firm with highly seasonal demand follows a chase demand strategy, which of the following is likely to be true?

The firm likely will have higher capital investment than if it followed a level plan

You are sitting next to a person in business class on a flight from Los Angeles to Sydney, Australia. You mention to that person that you got your ticket two months ago for only $12,500. The person responds that she bought her ticket two days ago for $7,800. This sometimes happens because airlines often use an approach called:

Yield management

Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true?

Zanda will have higher inventory carrying costs