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. â—†Plan D: Keep the current workforce stable at producing 1,600Ă‚Â units per month. Permit a maximum of 20% overtime at an additional cost of $50 per unit. A […]
Using the information in Problem 13.3, develop plan B. Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Evaluate this plan by computing the costs for January through August. Problem 13.3 The president of Hill […]
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 one year contract.” […]
The S&OP team at Kansas Furniture, has received the following estimates of demand requirements: a) Assuming one-time 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 an incremental cost basis: â—†Plan A: Produce at […]
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