Purse Company produces a line of purses
Chapter 13
- 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 | |
- Calculate the aggregate production rate.
- Calculate the appropriate workforce given the aggregate production rate. If Sally will need to hire workers, include this.
- Show what would happen if this plan were implemented.
- Evaluate the plan in terms of cost, customer service, operations, and human resources.
- 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:
- Calculate the aggregate production rate.
- Calculate the appropriate workforce given the aggregate production rate.
- Show what would happen if this plan were implemented.
- Calculate the costs of this plan.
- Evaluate the plan in terms of cost, customer service, operations, and human resources.
Chapter 14
- 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 |
- Using the information given, calculate the replenishment time when no beginning inventory exists
- 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.
- 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.
