Develop another plan for the Mexican roofing manufacturer described in Examples 1 to 4 and Solved Problem 13.1. a) For this plan, plan 5, the firm wants to maintain a constant workforce of six, using subcontracting to meet remaining demand. Is this plan preferable? b) The same roofing manufacturer in Examples 1 to 4 and […]
The president of Hill Enterprises, Terri Hill, projects the firm’s aggregate demand requirements over the next 8 months as follows: Her operations manager is considering a new plan, which begins in January with 200 units on hand. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. […]
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 1,600 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 […]
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