Reference no: EM131437781
1. FlexMan, an electronics contract manufacturer, uses its Topeka, Kansas, facility to produce two product categories: routers and switches. Consultation with customers has indicated a demand forecast for each category over the next 12 months (in thousands of units) to be as shown in Table 8-10. Manufacturing is primarily an assembly operation, and capacity is governed by the number of people on the production line. The plant operates 20 days a month, eight hours each day. Production of a router takes 20 minutes, and production of a switch requires 10 minutes of worker time. Each worker is paid $10 per hour with a 50 percent premium for any overtime. The plant currently has 6,300 employees. Overtime is limited to 20 hours per employee per month. The plant currently maintains 100,000 routers and 50,000
switches in inventory. The cost of holding a router in inventory is $2 per month, and the cost of holding a switch in inventory is $1 per month. The holding cost arises because products are paid for by the customer at existing market rates when purchased. Thus, if FlexMan produces early and Table 8-10 Demand Forecast for FlexMan holds in inventory, the company recovers less given the rapidly dropping component prices.
a. Assuming no backlogs, no subcontracting, no layoffs, and no new hires, what is the optimum production schedule for FlexMan? What is the annual cost of this schedule? What inventories does the optimal production schedule build? Does this seem reasonable?
b. Is there any value for management to negotiate an increase of allowed overtime per employee per month from 20 hours to 40? What variables are affected by this change?
c. Reconsider parts (a) and (b) if FlexMan starts with only 5,900 employees. Reconsider parts (a) and (b) if FlexMan starts with 6,700 employees. What happens to the value of additional overtime as the workforce size decreases?
TABLE 8-10
Month Router Demand Switch Demand
January 1,800 1,600
February 1,600 1,400
March 2,600 1,500
April 2,500 2,000
May 800 1,500
June 1,800 900
July 1,200 700
August 1,400 800
September 2,500 1,400
October 2,800 1,700
November 1,000 800
December 1,000 900
|
Explain the principle on which you make the recommendation
: Strategize the best location for new hubs for the service arm and the best location and set up strategies for the manufacturing arm. Explain the principle on which you make these recommendations. Individual Projects:
|
|
Make a post which makes case for building up inventory level
: Please make a post which makes the case for building up inventory levels. Please make a second post which makes the case for using JIT & Lean Manufacturing to eliminate as much inventory as possible.
|
|
describe conflict situation and organizational setting
: MGMT 570- Submit written project proposal-describe conflict situation and organizational setting. [Note: get a jump start on your literature review NOW].
|
|
Types of traditional training
: If you had to choose two traditional methods to use in the diversity awareness training session, which two would you pick and why? Be sure to tell us which objective(s) each training method addresses.
|
|
Optimum production schedule for flexman
: Assuming no backlogs, no subcontracting, no layoffs, and no new hires, what is the optimum production schedule for FlexMan? What is the annual cost of this schedule? What inventories does the optimal production schedule build? Does this seem reaso..
|
|
Optimum production schedule for flexman
: Assuming no backlogs, no subcontracting, no layoffs, and no new hires, what is the optimum production schedule for FlexMan? What is the annual cost of this schedule? What inventories does the optimal production schedule build? Does this seem reaso..
|
|
Late charges and unpaid account balacances
: What types of guest information are useful in collecting payment for late charges and unpaid account balacances?
|
|
Fates of hospitals and physicians
: The fates of hospitals and physicians are closely intertwined these days. In fact, the practice behaviors of physicians are crucial for determining the financial success of a hospital. Discuss the impact of physician practice patterns on the resul..
|
|
Fates of hospitals and physicians
: The fates of hospitals and physicians are closely intertwined these days. In fact, the practice behaviors of physicians are crucial for determining the financial success of a hospital. Discuss the impact of physician practice patterns on the resul..
|