Fabric Corporation manufactures home furnishings for department stores. Planning is underway for the production of the following items during the next production period: Fabric required (yards) Time required (hours) Packaging material (ounces) Profit Product X1 Product X2 8 2 4 328 3 2 14 8 Fabric Corporation's production manager has 3750 yards of material in stock for this production period. Six hundred hours of production time are scheduled and 500 ounces of packaging material is available. Each of these quantities can be adjusted through overtime or extra purchases. The production manager's highest priority is to achieve a profit of PhP3700. His second priority is to avoid additional purchases of packaging material. Third, the production manager wants to use all of the scheduled production hours and fourth, minimize any fabric remaining from the 3750 yards. a) Formulate the goal programming model. b) Solve the goal programming problem. Determine the satisficing solution. c) Determine whether the goals are achieved or not? If not achieved, by how much?

Fabric Corporation manufactures home furnishings for department stores. Planning is underway for the production of the following items during the next production period: Fabric required (yards) Time required (hours) Packaging material (ounces) Profit Product X1 Product X2 8 2 4 328 3 2 14 8 Fabric Corporation's production manager has 3750 yards of material in stock for this production period. Six hundred hours of production time are scheduled and 500 ounces of packaging material is available. Each of these quantities can be adjusted through overtime or extra purchases. The production manager's highest priority is to achieve a profit of PhP3700. His second priority is to avoid additional purchases of packaging material. Third, the production manager wants to use all of the scheduled production hours and fourth, minimize any fabric remaining from the 3750 yards. a) Formulate the goal programming model. b) Solve the goal programming problem. Determine the satisficing solution. c) Determine whether the goals are achieved or not? If not achieved, by how much?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.2SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
3. The MPS planner at Murphy Motors uses MPS time-phased records for planning end-item pro- duction. The planner is currently working on a schedule for the P24, one of Murphy's top-selling motors. The planner uses a production lot size of 70 and a safety stock of 5 for the P24 motor. Week On hand 30 30 30 1 2 3 4 5 6 7 8 40 40 40 45 45 13 8 4 Item: P24 Forecast Orders Projected available balance 20 Available-to-promise MPS a. Complete the MPS time-phased record for product P24. b. Can Murphy accept the following orders? Update the MPS time-phased record for accepted orders. Amount 40 Order Desired Week 1 4 2 6 3 30 2 4 25 3 30 4882 7623
3. The MPS planner at Murphy Motors uses MPS time-phased records for planning end-item pro- duction. The planner is currently working on a schedule for the P24, one of Murphy's top-selling motors. The planner uses a production lot size of 70 and a safety stock of 5 for the P24 motor. Item: P24 Forecast Orders On hand Week 12345678 30 30 30 40 40 40 45 45 13 8 4 Projected available balance Available-to-promise MPS 20 a. Complete the MPS time-phased record for product P24. b. Can Murphy accept the following orders? Update the MPS time-phased record for accepted orders. Order 1234 4 Amount 40 30 30 25 Desired Week 4 6 2 3
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,000 February 4,100 March 3,800 April 4,200 May 4,850 June 4,500 July 5,150 August 4,750 September 5,250 October 5,550 November 6,150 December 5,850 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.7. (picture below)(Do not round intermediate calculations. Round your answers to 2 decimal places.) Month Forecast january february march april may june july august september october november december
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,000 February 4,100 March 3,800 April 4,200 May 4,850 June 4,500 July 5,150 August 4,750 September 5,250 October 5,550 November 6,150 December 5,850 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.7. (picture below)(Do not round intermediate calculations. Round your answers to 2 decimal places.) Month Forecast january february march april may june july august september october november december b. To…
Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: January 1 Quantity (pounds) January 31 Quantity (pounds) Work-in-Process Inventory Cost Cost Molding department Finishing department None None 5,000 $ 15,000 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Direct Costs of Production Materials Conversion Molding department Finishing department $ 450,000 $ 90,000 80,290 The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required: 1. Prepare…
LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming four quarters. Demand in each of the four quarters and production, overtime, and subcontracting capacities are reported in the table below, in addition to the feasible production plan. The relevant costs are: • Regular time production cost is $10/unit. Overtime production cost is $14/unit. Subcontracting cost is $18/unit Inventory is held at a cost of $1/unit/quarter. • Units may be backordered at a cost of $4/unit/quarter. Production Resource Regular Time Q1 Overtime Q1 Subcontract Q1 Regular Time Q2 Overtime Q2 Subcontract Q2 Regular Time Q3 Overtime Q3 Subcontract Q3 Demand in Quarter Demand in Quarter Q2 0 20 0 550 Q1 550 230 0 0 0 0 40 40 0 860 250 470 0 40 0 1330 What is the inventory cost for the year? What is the backorder cost for the year? What is the total cost for the year? Q3 0 0 0 0 0 30 510 160 0 700 What is the total overtime production cost for the year? Capacity 550 250 500…
Musa's Cashmere Sweaters has authorized the following MPS for her exclusive line of cashmere sweaters. She wants to use the MPS record for promising future orders. Current order promises are included. The MPS order quantity is 60 units. Beginning Inventory is 0. Complete the following MPS record. Period 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 15 15 15 15 20 20 20 20 25 25 25 25 Customer orders 12 10 8 25 40 0 15 30 30 0 0 40 Projected available Available-to-promise MPS 60
14.26. Calculate the available-to-promise row in the following matrix: Period On Hand = 100 1 2 3 4 5 6 Forecast 50 100 50 100 50 100 Customer Orders 50 125 75 175 45 15 Master Production 200 200 Schedule Available-to-Promise
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January February 4,100 4,200 March 3,900 April 4,300 May 4,900 June 4,600 July 5,200 August 4,800 September 5,300 October 5,600 November 6,200 December 5,900
The current data for five trees that will be analyzed in the exercise are shown in the following table Expected Yearly Demand Quantity For Sale In-Field Quantity 440 74 Trees Christmas Palm Washingtonia Gumbo Limbo Yellow Poinciana Weeping Podo 81 165 159 49 185 Trees Christmas Palm Washingtonia Std Dev 31 155 35 32 68 Gumbo Limbo Yellow Poinciana The "expected yearly demand" is an estimate of the demand over the next year for the tree. The "std dev" is the standard deviation, a measure of the error, that corresponds to the forecast. For-sale and in-field quantities are given, and finally the total number of trees planted on the farm. The demand forecast and quantities are updated on an ongoing basis as trees are sold and planted on the farm. 374 70 42 290 Your first task is to evaluate the inventory "position" of each tree. The farm does not keep any backorder information, so the only data you have is "for-sale" and "in-field" quantities. Think about "for-sale" as on-hand trees, and…