Professional Documents
Culture Documents
Chapter 14
Qu art er
Al ter n
Re q
u ir
4 Ov ert im e Su bc on tra ct
ati
ve s 1 2 Qu ar ter 3 4 Un us e Ca d To pa Ca tal pa ty ci ty ci
em en
ts
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Planning Relationships
Business or annual plan
Figure 14.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Planning Relationships
Business or annual plan Production or staffing plan
Figure 14.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Planning Relationships
Business or annual plan Production or staffing plan MPS or workforce schedule
Figure 14.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Planning Relationships
Business or annual plan Production or staffing plan MPS or workforce schedule
Figure 14.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Planning Relationships
Business or annual plan Production or staffing plan MPS or workforce schedule
Figure 14.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Managerial Inputs
Aggregate plan
Figure 14.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Managerial Inputs
Distribution and marketing Customer needs Demand forecasts Competition behavior
Aggregate plan
Figure 14.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Managerial Inputs
Distribution and marketing Customer needs Demand forecasts Competition behavior
Aggregate plan
Figure 14.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Managerial Inputs
Distribution and marketing Customer needs Demand forecasts Competition behavior
Aggregate plan
Figure 14.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Managerial Inputs
Distribution and marketing Customer needs Demand forecasts Competition behavior
Aggregate plan
Figure 14.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Managerial Inputs
Distribution and marketing Customer needs Demand forecasts Competition behavior
Aggregate plan
Figure 14.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Managerial Inputs
Operations Current machine capacities Plans for future capacities Workforce capacities Current staffing level Distribution and marketing Customer needs Demand forecasts Competition behavior
Aggregate plan
Figure 14.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Rates Minimize Changes in Workforce Levels Maximize Utilization of Plant and Equipment
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Strategy
1. Chase #1: vary workforce level to match demand 2. Chase #2: vary output rate to match demand 3. Level #1: constant workforce level
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Figure 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Figure 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Figure 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Figure 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
No
Figure 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
No
Figure 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
No
Figure 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Dock
Aisle
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Dock
Aisle
5 13
6 14
Total 78
Example 14.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Dock
Aisle
5 13
6 14
Total 78
No more than 10 new hires in any period No backorders are permitted Overtime can not exceed 20% of regular-time capacity The following costs can be assigned: Regular-time wage $2,000/period at 20 hours/week Overtime wages 150% of regular-time Hiring $1,000/person Layoffs $500/person
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Example 14.1
Dock
Aisle
5 13
6 14
Total 78
Current employment = 10 part-time clerks Requirement Peak 1. 2. 3. 4. No more than 10 new hires in any period No backorders are permitted Overtime can not exceed 20% of regular-time capacity The following costs can be assigned: Regular-time wage $2,000/period at 20 hours/week Overtime wages 150% of regular-time Hiring $1,000/person Layoffs $500/person
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Example 14.1
Dock
Aisle
5 13
6 14
Total 78
Current employment = 10 part-time clerks Requirement Peak 1. 2. 3. 4. No more than 10 new hires in any period No backorders are permittedemployees in peak period 1.20w = 18 Overtime can not exceed 20% of regular-time capacity The following costs can be assigned: Regular-time wage $2,000/period at 20 hours/week Overtime wages 150% of regular-time Hiring $1,000/person Layoffs $500/person
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Example 14.1
Dock
Aisle
5 13
6 14
Total 78
Current employment = 10 part-time clerks Requirement Peak 1. 2. 3. 4. No more than 10 new hires in any period No backorders are permittedemployees in peak period 1.20w = 18 Overtime can not exceed 20% of regular-time capacity The following costs can be assigned: 18 w$2,000/period at 20 hours/week = = 15 employees Regular-time wage 1.20 Overtime wages 150% of regular-time Hiring $1,000/person Layoffs $500/person
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Example 14.1
Dock
Aisle
5 13
6 14
Total 78
Current employment = 10 part-time clerks Requirement Peak 1. 2. 3. 4. No more than 10 new hires in any period No backorders are permittedemployees in peak period 1.20w = 18 Overtime can not exceed 20% of regular-time capacity The following costs can be assigned: 18 w$2,000/period at 20 hours/week = = 15 employees Regular-time wage 1.20 Overtime wages 150% of regular-time Hiring $1,000/person Layoffs $500/person
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Figure 14.4
Dock
Aisle
5 13
6 14
Total 78
Figure 14.5
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Alternatives
Quarter
Quarter 1
0 r c s r+b c+b s+b r+2b c+2b s+2b r+3b c+3b s+3b
2
h r+h c+h s+h r c s r+b c+b s+b r+2b c+2b s+2b
3
2h r+2h c+2h s+2h r+h c+h s+h r c s r+b c+b s+b
4
3h r+3h c+3h s+3h r+2h c+2h s+2h r+h c+h s+h r c s
I0 R1 O1 S1 R2 O2 S2 R3 O3 S3 R4 O4
u 0 0
S4
Overtime Subcontract
Requirements
D1
D2
D3
D4 + I4
Figure 14.7
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Alternatives
Quarter
Quarter 1
0 r c s r+b c+b s+b r+2b c+2b s+2b r+3b c+3b s+3b
2
h r+h c+h s+h r c s r+b c+b s+b r+2b c+2b s+2b
3
2h r+2h c+2h s+2h r+h c+h s+h r c s r+b c+b s+b
4
3h r+3h c+3h s+3h r+2h c+2h s+2h r+h c+h s+h r c s
I0 R1 O1 S1 R2 O2 S2 R3 O3 S3 R4 O4
u 0 0
S4
Overtime Subcontract
Requirements
D1
D2
D3
D4 + I4
Example 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Alternatives
Beginning inventory Regular time
1
0 r c s r+b c+b s+b
Unused Total Quarter 4 Capacity Capacity 3 2 3 4 Total I R 850 1500 350 3000 2
h 2h 3h 4h u 0 0 u 0 0
0
Quarter
Quarter
r+h
r+2h
r+3h
c+h
c+2h
Tru-RainbowOvertime Subcontracting
2
450 90 200
r c s
s+h
450 90 200
S2 R3 O3 S3 R4 O4 S4
Current inventory = 250,000 Ending inventory = 300,000 Regular time = $1.00/unit Overtime = $1.50/unit Subcontracting = $1.90/unit Inventory holding cost = $0.30/gallon/quarter Maximum overtime = 20% of regular time Maximum subcontract = 200,000 No back orders or stockouts Requirements D D D D +I U
r+2b r+b u 0 0 3 Overtime c+2b s+2b c+b s+b c s c+h s+h r Subcontract Regular time r+3b r+2b r+b u 0 0 4 Overtime c+3b s+3b c+2b s+2b c+b s+b c s Subcontract
1 2 3 4 4
Example 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Tru-Rainbow Company
Figure 14.8
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Tru-Rainbow Company
Figure 14.8
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Inventory accumulation
Tru-Rainbow Company
300
Figure 14.8
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Tru-Rainbow Company
400
110 300
Figure 14.8
| | 2 3 Quarter
| 4
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Tru-Rainbow Company
400
110 300
Figure 14.8
| | 2 3 Quarter
| 4
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Figure 14.9
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Example 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Example 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Example 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Example 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Example 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Quarter
Regular-Time Production
Overtime Production
Subcontracting
Total
Example 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Quarter
Regular-Time Production
Overtime Production
Subcontracting
Total
1 2 3 4 Totals
90 90 150 90 420
Example 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Quarter
Regular-Time Production
Overtime Production
Subcontracting
Total
1 2 3 4 Totals
90 90 150 90 420
Anticipation Inventory Quarter Quantity 1 250 + 560 300 = 2 510 + 740 850 = 3 400 + 1,100 1,500 = 4 0 + 650 350 =
Example 14.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Solved Problem 1
Figure 14.10
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Solved Problem 1
Figure 14.11
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Solved Problem 1
Figure 14.12
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.
Solved Problem 2
Figure 14.13
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.