You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Mr. Chua that you can do a better job at aggregate planning than his current staff. He said, "Fine. You do that, and you have a 1-year contract. To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Costs Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Month 0 June 1 July 2 August 3 September 4 October $9/disk drive/Month $80/disk drive $12 $18/hour (above 8 hours) $40/worker $80/worker Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) 5 November 6 December Demand 420 480 500 560 750 700 Other data Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory Ending Inventory O disk drives "Note that there is no holding cost for June. Beginning Inventory 150 8 people 4 hours 20 days 150 disk drives Units Produced Personnel on Hire/ Staff Layoff Ending Inventory

You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Mr. Chua that you can do a better job at aggregate planning than his current staff. He said, "Fine. You do that, and you have a 1-year contract. To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Costs Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Month 0 June 1 July 2 August 3 September 4 October $9/disk drive/Month $80/disk drive $12 $18/hour (above 8 hours) $40/worker $80/worker Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) 5 November 6 December Demand 420 480 500 560 750 700 Other data Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory Ending Inventory O disk drives "Note that there is no holding cost for June. Beginning Inventory 150 8 people 4 hours 20 days 150 disk drives Units Produced Personnel on Hire/ Staff Layoff Ending Inventory

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter7: Planning And Goal Setting

Section: Chapter Questions

Problem 2ED

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Deb Bishop Health and Beauty Products has developeda new shampoo, and you need to develop its aggregate schedule.The cost accounting department bas supplied you the costsrelevant to the aggregate plan, and the marketing department hasprovided a four-quarter forecast. All are shown as follows: Your job is to develop an aggregate plan for the next four quarters.a) First, try hiring and layoffs (to meet the forecast) as necessary.b) Then try a plan that holds employment steady.c) Which is the more economical plan for Deb Bishop Healthand Beauty Products?
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Li & Fung is a global trading company with clients beingmajor retailers such as Wal-Mart, Target and Disney Worldserving a network of 12,000 suppliers. Li & Fung is engaged in collaborative planning, relying on collaborative technol-ogy to forecast forthcoming trends. Being an intermediary between customers and suppliers, collaborative planning is critical for the company. Li & Fung used to deal with its cli-ents mostly by phone and fax, with e-mail counting as high technology. But thanks to a new web-services platform, its processes have speeded up. One of the most important tech-nologies has turned out to be videoconferencing. It allows buyers and manufacturers to examine the colour of a mate-rial or the stitching on a garment. The information system also allows Li & Fung to make changes fast as well as to lookacross its operations to identify trends.a) Explain the organizational objectives that CPFR is tryingto achieve. Stress its advantages and disadvantages.b) A…
Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day. You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua that you can do a better job at aggregate planning than her current staff. She said, "Fine. You do that, and you have a 1-year contract." To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Other data Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory Ending Inventory *Note that there is no holding cost for June. 8 people 4 hours 20 days 150 disk drives* O disk drives Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive…
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Li & Fung is a global trading company with clients beingmajor retailers such as Wal-Mart, Target and DisneyWorld serving a network of 12,000 suppliers. Li & Fungis engaged in collaborative planning, relying on collaborative technology to forecast forthcoming trends. Beingan intermediary between customers and suppliers, collaborative planning is critical for the company. Li & Fungused to deal with its clients mostly by phone and fax, withe-mail counting as high technology. But thanks to a newweb-services platform, its processes have speeded up. Oneof the most important technologies has turned out to bevideoconferencing. It allows buyers and manufacturers toexamine the colour of a material or the stitching on a garment. The information system also allows Li & Fung tomake changes fast as well as to look across its operationsto identify trends.a) Explain the organizational objectives that CPFR is tryingto achieve. Stress its advantages and disadvantages.b) A complementary…
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