solution

Yu Amy Xia has developed a specialized airtight vacuum bag to extend the freshness of seafood shipped to restaurants. She has put together the following demand cost data:

Yu decides that the initial inventory of 250 units will incur the 20¢/unit cost from each prior quarter (unlike the situation in most other companies, where a 0 unit cost is assigned).

a) Find the optimal plan using the transportation method.

b) What is the cost of the plan?

c) Does any regular time capacity go unused? If so, howmuch in which periods?

d) What is the extent of backordering in units and dollars?

 
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Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his 3 CPAs can together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours per month, he or she gets an additional “overtime” pay of $62.50 for each of the extra hours: this is above and beyond the $5,000 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (billing) more than 240 hours in any given month. The demand for billable hours for the firm over the next 6 months is estimated below:

Cohen has an agreement with Forrester, his former partner, to  help out during the busy tax season, if needed, for an hourly fee of $125. Cohen will not even consider laying off one of his colleagues in the case of a slow economy. He could, however, hire another CPA at the same salary, as business dictates.

a) Develop an aggregate plan for the 6-month period.

b) Compute the cost of Cohen’s plan of using overtime and Forrester.

c) Should the firm remain as is, with a total of 4 CPAs?

 
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Refer again to Problems 14.5 and 14.7. In addition to 100 units of S, there is also a demand for 20 units of U, which is a component of S. The 20 units of U are needed for maintenance purposes. These units are needed in week 6. Modify the net material requirements plan to reflect this change.

Problems 14.7

Using the information in Problem 14.5, construct a net material requirements plan using the following on-hand inventory.

Problem 14.5

The demand for subassembly S is 100 units in week 7. Each unit of S requires 1 unit of T and 2 units of U. Each unit of T requires 1 unit of V, 2 units of W, and 1 unit of X. Finally, each unit of U requires 2 units of Y and 3 units of Z. One firm manufactures all items. It takes 2 weeks to make S, 1 week to make T, 2 weeks to make U, 2 weeks to make V, 3 weeks to make W, 1 week to make X, 2 weeks to make Y, and 1 week to make Z.

a) Construct a product structure. Identify all levels, parents, and components.

b) Prepare a time-phased product structure.

 
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Your boss at Xiangling Hu Products, Inc., has just provided you with the schedule and lead times for the bracket in Problem 14.3. The unit is to be prepared in week 10. The lead times for the components are bracket (1  week), base (1 week), spring (1 week), clamp (1 week), housing (2 weeks), handle (1 week), casting (3 weeks), bearing (1 week), and shaft (1 week).

a) Prepare the time-phased product structure for the bracket.

b) In what week do you need to start the castings?

Problem 14.3

As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, two springs, and four clamps. The base is assembled from one clamp and two housings. Each clamp has one handle and one casting. Each housing has two bearings and one shaft. There is no inventory on hand.

a) Design a product structure noting the quantities for each item and show the low-level coding.

b) Determine the gross quantities needed of each item if you are to assemble 50 brackets.

c) Compute the net quantities needed if there are 25 of the base and 100 of the clamp in stock.

 
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