[PRINT]
Operations Management: Section 11 (WI23),
Melvyn Sosa Correa, 2/24/23 at 2:08:52 AM MST
Question1: Score 5/5
PP.51 A small manufacturer of specialty welding equipment has developed a chase production plan for the next four
quarters, as seen below:
Supply/Demand Info Pre-Q1 Q1 Q2 Q3 Q4
Forecast (demand) 3,915 3,915 3,510 4,050
Regular production 3,915 3,915 3,510 4,050
Subcontract production
Ending inventory
Hired employees 4
Fired employees 2 3
Total employees 31 29 29 26 30
The table below shows additional relevant information:
Capacity Information & Cost Variables
Production rate (units/employee/quarter) 135
Subcontractor capacity (units/quarter) 510
Regular production cost/unit $67
Holding cost/unit/quarter $12
Hiring cost/employee $880
Firing cost/employee $2,450
Subcontract cost/unit $110
What is the overall total cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
1046900
Auto graded Grade: 1/1.0
What is the total regular production cost for this production plan? (Display your answer to the nearest whole
number.)
Your response Correct response
1031130
Auto graded Grade: 1/1.0
What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
0
Auto graded Grade: 1/1.0
What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
3520
Auto graded Grade: 1/1.0
What is the total fire cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
12250
Auto graded Grade: 1/1.0
Total grade: 1.0×1/5 + 1.0×1/5 + 1.0×1/5 + 1.0×1/5 + 1.0×1/5 = 20% + 20% + 20% + 20% + 20%
Question2: Score 7/7
PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the
table below:
Supply/Demand Info Beginning Jan Feb Mar Apr May Jun
Forecast (demand) 59,800 45,000 58,200 55,400 53,000 62,400
Regular production
Overtime production
Subcontract production
Ending inventory 4,200
Hired employees
Fired employees
Total employees 190
Cost variables are as follows:
Cost Variables
Labor cost/hour $20
Overtime cost/unit $36
Subcontracting cost/unit $29
Holding cost/unit/month $14
Hiring cost/employee $3,800
Firing cost/employee $5,900
Here is some additional relevant (capacity) information:
Capacity Information
Total labor hours/SSD 3
Regular production units/employee/month 200
Max regular production/month 56,000
Max overtime production/month 5,000
Max subcontractor production/month 4,400
Assuming the company uses regular production first, then ONLY overtime and/or subcontract production, answer the
following questions:
What is the regular production cost (over the six months from January through June) for a CHASE production plan?
(Display your answer to the nearest whole number.)
Your response Correct response
19260000
Auto graded Grade: 1/1.0
What is the total overtime production cost for this production plan? (Display your answer to the nearest whole
number.)
Your response Correct response
72000
Auto graded Grade: 1/1.0
What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
191400
Auto graded Grade: 1/1.0
What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
0
Auto graded Grade: 1/1.0
What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
600400
Auto graded Grade: 1/1.0
What is the total fire cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
401200
Auto graded Grade: 1/1.0
What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
20525000
Auto graded Grade: 1/1.0
Total grade: 1.0×1/7 + 1.0×1/7 + 1.0×1/7 + 1.0×1/7 + 1.0×1/7 + 1.0×1/7 + 1.0×1/7 = 14% + 14% + 14% + 14% + 14% + 14% +
14%
Question3: Score 5/5
PP.61 A small manufacturer of specialty welding equipment has developed a level production plan for the next four
quarters. Note, however, that this plan is incomplete and requires that you first compute the ending inventory for each
quarter (and assume there is no Pre-Q1 ending inventory) before you answer the questions below.
Supply/Demand Info Pre-Q1 Q1 Q2 Q3 Q4
Forecast (demand) 2,700 2,700 5,940 5,400
Regular production 4,185 4,185 4,185 4,185
Subcontract production
Ending inventory
Hired employees
Fired employees 12
Total employees 43 31 31 31 31
The table below shows additional relevant information:
Capacity Information & Cost Variables
Production rate (units/employee/quarter) 135
Subcontractor capacity (units/quarter) 480
Regular production cost/unit $84
Holding cost/unit/quarter $14
Hiring cost/employee $960
Firing cost/employee $2,600
Subcontract cost/unit $121
What is the overall total cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
1516740
Auto graded Grade: 1/1.0
What is the total regular production cost for this production plan? (Display your answer to the nearest whole
number.)
Your response Correct response
1406160
Auto graded Grade: 1/1.0
What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
79380
Auto graded Grade: 1/1.0
What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
0
Auto graded Grade: 1/1.0
What is the total fire cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
31200
Auto graded Grade: 1/1.0
Total grade: 1.0×1/5 + 1.0×1/5 + 1.0×1/5 + 1.0×1/5 + 1.0×1/5 = 20% + 20% + 20% + 20% + 20%
Question4: Score 3/7
PP.63 Jupiter, a large candy company, is having great success with its "Swan" family of candy bars. Due to a number of
factors they like to plan their production at least six months into the future. The table below contains their demand
projections (in tons) for April through September:
Supply/Demand Info Beginning Apr May Jun Jul Aug Sep
Predicted Sales 60,900 47,300 47,700 60,800 62,000 55,200
Regular production
Overtime production
Subcontract production
Ending inventory 6,900
Hired employees
Fired employees
Total employees 495
Cost variables are as follows:
Cost Variables
Labor cost/hour $16
Overtime cost/ton $36
Subcontracting cost/ton $28
Holding cost/ton/month $15
Hiring cost/employee $3,300
Firing cost/employee $5,200
Here is some additional relevant (capacity) information:
Capacity Information
Total labor hours/ton 3
Regular production tons/employee/month 100
Max regular production (tons/month) 56,300
Max overtime production (tons/month) 4,000
Max subcontractor production (tons/month) 4,100
Given the above information (and don't overlook beginning number of employees and inventory levels in the first table),
create a LEVEL production plan with only the use of regular production and no inventory left over at the end of the six-
month period.
What is the regular production cost (over the six months from April through September) for a level production plan?
(Display your answer to the nearest whole number.)
Your response Correct response
14256000 15,696,000
Auto graded Grade: 0/1.0
What is the total overtime production cost for this production plan? (Display your answer to the nearest whole
number.)
Your response Correct response
0 0
Auto graded Grade: 1/1.0
What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
0 0
Auto graded Grade: 1/1.0
What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
474,000
Auto graded Grade: 0/1.0
What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
165,000
Auto graded Grade: 0/1.0
What is the total fire cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
0 0
Auto graded Grade: 1/1.0
What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
16,335,000
Auto graded Grade: 0/1.0
Total grade: 0.0×1/7 + 1.0×1/7 + 1.0×1/7 + 0.0×1/7 + 0.0×1/7 + 1.0×1/7 + 0.0×1/7 = 0% + 14% + 14% + 0% + 0% + 14% + 0%
Question5: Score 5/5
PP.71 A small manufacturer of specialty welding equipment has developed a combination production plan for the next
four quarters, as seen below:
Supply/Demand Info Pre-Q1 Q1 Q2 Q3 Q4
Forecast (demand) 5,720 6,240 5,980 6,630
Regular production 5,720 5,980 5,980 5,980
Subcontract production 260 390 260
Ending inventory 390
Hired employees 3 2
Fired employees
Total employees 41 44 46 46 46
The table below shows additional relevant information:
Capacity Information & Cost Variables
Production rate (units/employee/quarter) 130
Subcontractor capacity (units/quarter) 480
Regular production cost/unit $72
Holding cost/unit/quarter $14
Hiring cost/employee $1,000
Firing cost/employee $2,050
Subcontract cost/unit $129
What is the overall total cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
1831370
Auto graded Grade: 1/1.0
What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
117390
Auto graded Grade: 1/1.0
What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
5460
Auto graded Grade: 1/1.0
What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
5000
Auto graded Grade: 1/1.0
What is the total fire cost for this production plan? (Display your answer to the nearest whole number.)
Your response Correct response
0
Auto graded Grade: 1/1.0
Total grade: 1.0×1/5 + 1.0×1/5 + 1.0×1/5 + 1.0×1/5 + 1.0×1/5 = 20% + 20% + 20% + 20% + 20%
