Exam 10: Operations Planning and Scheduling

The ________ takes the master production schedule and derives plans for components, purchased materials and workstations.

What is a Gantt chart? What does Gantt stand for?

The employees of Global Bike Incorporated specialized in either their mountain bike or touring bike line, but there were a few workers that were equally adept at assembling either product. For sales and operations planning purposes, the latter group could be:

A(n) ________ strategy involves hiring and laying off employees to match the demand forecast over the planning horizon.

What is the impact of the sales and operations plan on the human resources and finance functions of a firm?

Table 10.10 A work center has the following six jobs waiting to be processed (all times are shown in days): -Use the information in Table 10.10. What is the average flow time (in days) using the EDD rule?

Imagine you are the owner/operator of a custom printing business. One morning you arrive at work and discover you have five customer orders that have different requirements and different total processing times. You ponder the sequence for a while and then decide to run the printing jobs in first-come, first-served order. What are some measures you could apply to your performance to measure whether you have done a good job? How is each measure calculated?

Table 10.5 The daily requirements for highway patrol officers at Park City over the week are: Each officer works five days a week and must have two consecutive days off. -Use the information in Table 10.5. How much total slack is generated from the schedule?

Table 10.1 Bart Incorporated manufactures rotary air fans and uses a production-planning horizon of one-half year. It allows for regular time, part time, overtime, and subcontracting production to meet the demand but no more than 12 units may be made by each of these methods. Both anticipation inventory and backorders are allowed. The beginning (or current) inventory is 20 units. Their first attempt at a sales and operations plan has resulted in the following. -Use the information in Table 10.1. Which one of these trade-offs works to your greatest advantage in terms of reducing costs over the entire planning period?

What is a product family?

Which one of the following statements regarding production and staffing plans is best?

Table 10.1 Bart Incorporated manufactures rotary air fans and uses a production-planning horizon of one-half year. It allows for regular time, part time, overtime, and subcontracting production to meet the demand but no more than 12 units may be made by each of these methods. Both anticipation inventory and backorders are allowed. The beginning (or current) inventory is 20 units. Their first attempt at a sales and operations plan has resulted in the following. -Use the information in Table 10.1. What would be the total plan cost if no more than five units each could be made each month by part-time, overtime, and subcontracted workers?

Table 10.2 Archie Toys is a retailer operating out of Wichita, Kansas. It experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. The workforce requirements (expressed as number of employees) are given in the following table for the next six periods. Costs associated with operations are as follows: Wages = $800 per worker per month Hiring cost = $300 per worker Layoff cost = $200 per worker The current workforce level is nine workers, and the undertime is paid for. Use the spreadsheet approach and the preceding data to answer the following questions. -Use the information in Table 10.2. The total cost of the staffing plan, including the cost of regular wages, hiring, and layoffs using a chase strategy with hiring and layoffs but no overtime, is:

Pilferage, obsolescence, and insurance costs are all elements of this cost category.

Table 10.3 A large distribution center uses some part-time employees in its workforce. Each part-time employee works a maximum of 80 hours per month. The workforce requirements (expressed as the number of part-time employees working the maximum regular time of 80 hours per month) are given in the following table for the next six periods. The relevant costs are: Wages = $350/month/worker Hiring cost = $100/worker Layoff cost = $50/worker Overtime cost = 150% of regular-time rate The current workforce level is 60, and overtime cannot exceed 25% of regular-time capacity. Use the spreadsheet approach to answer the following questions. -Use the information in Table 10.3. Use a level strategy with overtime and undertime. Minimize undertime by maximizing overtime during the peak period. If the firm does not pay undertime, what is the total cost of the staffing plan including the cost of regular wages, hiring, and layoffs?

Investment return that is unrealized by stocking raw materials and finished goods can be classified as holding cost.

The level strategy maintains a constant ________ level or ________ level during the planning horizon.

Operations planning and scheduling is the process of making sure demand and supply plans are in balance.

The spreadsheet approach to sales and operations planning for a services provider includes inventory costs as one factor to be considered.

The demand forecast for the next four periods is 90, 100, 120, and 140 units respectively. The plant has a regular capacity of 100 units per period, an overtime capacity of 10 units per period, and a subcontractor capacity of 5 units per period. There is a $5 per unit charge for regular production, an $8 per unit charge for overtime production, and a $9 per unit charge for subcontracting. The holding cost is $3 per unit per period, no shortages are allowed and the company has 5 units in inventory at the start of the planning period. a. How many units should be produced using overtime? b. How many units should be produced using subcontracting? c. What is the total inventory holding cost? d. What is the lowest total plan cost? e. Fill out this table showing the number of units made by period using each type of production and the resulting inventory at the end of each period.