Purse Company produces a line of purses

Chapter 13

  1. The Purse Company produces a line of purses. The manager, Sally Smith, is interested in using a level aggregate plan. Inventories and backorders will be used to handle demand fluctuations. She has asked you to develop such a plan.
Use the following data to solve the first seven problems.
Problem Data
Cost data
Regular-time labor cost per hour $17.00
Overtime labor cost per hour $21.00
Subcontracting cost per unit (labor only) $80.00
Holding cost per unit per period $13.00
Back-order cost per unit per period $20.00
Hiring cost per employee $550.00
Firing cost per employee $400.00
Capacity data
Beginning workforce 300 employees
Beginning inventory 600 units
Labor standard per unit 8 hours
Regular time available per period 200 hours
Overtime available per period 35 hours
Subcontracting maximum per period 1200 units
Subcontracting minimum per period 600 units
Demand data
Period 1 6000 units
Period 2 5000 units
Period 3 8000 units
Period 4 6000 units
Period 5 7000 units
Period 6 5000 units
  1. Calculate the aggregate production rate.
  2. Calculate the appropriate workforce given the aggregate production rate. If Sally will need to hire workers, include this.
  3. Show what would happen if this plan were implemented.
  4. Evaluate the plan in terms of cost, customer service, operations, and human resources.
  1. Sally has decided that the Purse Company must have very good customer service. She has asked you to develop a level aggregate plan using inventories but not backorders. All demands must be met each period. You must:
    1. Calculate the aggregate production rate.
    2. Calculate the appropriate workforce given the aggregate production rate.
    3. Show what would happen if this plan were implemented.
    4. Calculate the costs of this plan.
    5. Evaluate the plan in terms of cost, customer service, operations, and human resources.

Chapter 14

  1. Courtney’s Culotte Pants (CCP) top product is its Model A. Using the information given, draw the product structure tree for Model A.
Use the following information for Problems 1 through 4.
Component Immediate Parent Usage per Parent Lead Time (weeks) Beginning Inventory
A none 1 0
B A 2 2 250
C A 1 6 500
D A 3 3 750
E A 2 2 750
F B 4 2 3000
G B 2 4 1000
H D 3 2 5000
I D 2 4 5000
J E 1 8 1000
K E 5 1 5000
L E 2 4 2500
M F 3 3 250
N F 6 3 2560
O H 2 4 0
P K 1 2 500
Q K 2 3 1000
  1. Using the information given, calculate the replenishment time when no beginning inventory exists
  2. Courtney is preparing for her busy season and is building 2500 Model A culotte pants. Calculate the gross requirements for each component assuming that there is no beginning inventory.
  3. Using the information given and assuming that 2500 Model A culotte pants are scheduled for completion, calculate the gross requirements of each component. Use the beginning inventories given.

 

The citation for the book we are using is: Reid, R., D., and Nada R. Sanders. Operations Management: An Integrated Approach. Available from: Columbia College, (7th Edition). Wiley Global Education US, 2020.