11. Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are follows: Department Product 1 Product 2 Product 3 A 1.50 3.00 2.00 B 2.00 1.00 2.50 C 0.25 0.25 0.25 During the next production period, the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are $25 for product 1, $28 for product 2, and $30 for product 3.
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- Tuff-Rider, Inc., manufactures touring bikes and mountainbikes in a variety of frame sizes, colors, and component com-binations. Identical bicycles are produced in lots of 100. Theprojected demand, lot size, and time standards are shown inthe following table: Item Touring MountainDemand forecast 5,000 units/year 10,000 units/yearLot size 100 units 100 unitsStandard processing time .25 hour/unit .50 hour/unitStandard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours a day, 5 days a week,50 weeks a year. It operates five workstations, each producingone bicycle in the time shown in the table. The shop main-tains a 15 percent capacity cushion. How many workstationswill be required next year to meet expected demand withoutusing overtime and without decreasing the firm’s currentcapacity cushion?WAI knows from historical records that approximately 40percent of its labor is used in Department 101 and 60 percentis used in Department 102. Th e reverse is true of machine time;60 percent is used in Department 101 and 40 percent is used inDepartment 102.(a) Calculate the labor and machine hours needed inDepartment 101 for each period of the MPS developed inProblem 4.(b) Calculate the labor and machine hours needed inDepartment 102 for each period of the MPS developed inProblem 4.Manufacturing Aggregate Planning Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy. b.) Compute the costs of the Level Strategy c.) Compare the costs of the two strategies. Which one is superior?
- #4- The mean number of air conditioning units assembled per month by Freeze, Inc. is 750 and the standard deviation is 100 units. a. If the number of air conditioning units assembled per month follows a normal distribution, calculate the probability of Freeze, Inc to assemble a quantity of air conditioning units greater than the monthly break-even point calculated in problem 3-a. b. An improved assembling process is proposed to Freeze, Inc. to reduce the variable cost from $500 per unit to $400 per unit., increase the mean number of air conditioning units assembled per month from 750 to 850 and reduce the standard deviation to 90 units. As a result of the improvements, monthly fixed costs would go up from $250,000 to $300,000. Once these improvements are implemented, calculate the new number of air conditioning units that Freeze Inc. must sell every month to break-even, discuss and justify if you would recommend the process improvement initiative. c. If the number of air conditioning…Which of the following statements are correct about services and service design? Select ALL which are true. 1) Services can be more easily automated and transported than products. ) 2) The service delivery system should be designed primarily around the employees in the system. ) 3) Low-contact services can usually be made more efficient than high-contact services. 4) A service is produced and consumed simultaneously (at the same time).The binary variables in the fixed cost models correspond to: A.) The number of units or products produced. B.) The total profit C.) The amount of labor hours D.) A process for which a fixed cost ovcurs
- A novelty coffee mug manufacturer produces 5 different designs that are sold at tourist information kiosks. The demand requirements for the com- 3. ing tourist season is as follows: Design Demand (units) 500 750 600 800 450 A B C DE The mugs can all be produced in the same workstations, but require different processing and setup times. The production information is in the following table: Design Batch Size (units) C D 50 50 50 50 50 Setup Time (hr/batch) Processing Time (hr/unit) 0.15 0.15 0.25 0.25 0.10 2.5 4 1.5 The company wants to produce all the required mugs in one four-week pe- riod. It currently operates workstations that work 8 hours per day, 5 days per week, with a capacity cushion of 20%. (a) Calculate the total time required to produce the mugs to meet the ex- pected demand.l AT&T ? C 2:01 PM ... mple Practice Math Flov Sample 1 You have an upstream Picking department that feeds two downstream packing departments: A and B. 75% of your Pick volume goes to department A, which has a packing rate of 150 units per labor hour (uph). 25% of the Pick volume goes to department B, which is for large items, and has a pack rate of 25 units per labor hour. Your pickers pick both large and small items throughout the day at an overall average rate of 100 units per labor hour. You have 25 people today for all 3 departments, and you absolutely must pack 7,500 units in department A to meet a customer promise metric. How do you allocate labor to balance the flow in your department if you work a 10 hour shift? Do not assume breaks or lunches in your answer Department % of Rate Реople Daily volume| (uph) volume Pick 100% 100 Pick A 75% 150 ? 7,500 Pick B 25% 25 ?C&A Furniture uses a four-step process to make its famous wood table: Processing Time Process Milling Table top Milling Table stand Assembly Finishing The milling machine requires a setup time of 30 minutes to make table tops and a changeover time of 30 minutes to make table stands. If the batch size is 10, what is the capacity of the process in tables per minute? A) 0.077 B) 0.05 C) 0.067 10 5 15 20 D) 0.048
- 3.4-15. The Weigelt Corporation has three branch plants with ex- cess production capacity. Fortunately, the corporation has a new product ready to begin production, and all three plants have this capability, so some of the excess capacity can be used in this way. This product can be made in three sizes-large, medium, and4. The Spencer Optics Company produces an inexpensive line of sunglasses. The manufacturing process consists of assembling two plastic lenses (produced by the firm's plastic molding depart- ment) into a finished frame (purchased from an outside supplier). The company is interested in using material requirements planning to schedule its operations and has asked you to prepare an example to illustrate the technique. The firm's sales manager has prepared a 10-week sales forecast for one of the more popular sunglasses (the Classic model) for your example. The forecast is 100 units per week. Spencer has customer orders of 110 units, 80 units, 50 units, and 20 units in weeks 1, 2, 3, and 4, respectively. The sunglasses are assembled in batches of 300 units. Presently, three such batches are sched- uled: one in week 2, one in week 5, and one in week 8. Complete the following time-phased record: Week hand 1 2 3 4 5 6 7 8 9 10 Classic Model On MPS Record Forecast Orders Projected available…The Chineke Group of Company manufactures two products, namely product B and product P, and provides you with the following information: Prod. B Prod. P Selling price per unit 80.00 50.00 Less cost of sales: Direct material A @ R5.00 per kg 15.00 10.00 Direct material B @ R4.00 per kg 8.00 12.00 Direct labour @ R6.00 per hour 12.00 6.00 Variable manufacturing overhead @ R5.00 per labour hour 10.00 5.00 Fixed manufacturing overhead per unit 5.00 5.00 Gross profit 30.00 12.00 Less sales & administrative costs: Variable 6.00 4.00 Fixed 10.00 5.00 Net profit per unit 14.00 3.00 Take note of the following constraints: Material A available 360 kg Material B available 360 kg Labour hours available…