MBA576 Unit 7 Homework

Unit 7: Homework

Scheduling and Supply Chain Management

Scheduling the delivery of raw materials, production runs, and the subsequent shipment of finished products to customers is Kibby and Strand’s operational process, but as we have seen in the simulation scenarios this process can be interrupted if the supply of raw materials is not aligned with pending contracts.  The operations manager uses supply chain management to do the following in order to minimize costs and scheduling impacts:

1. Manage procurement of raw materials.

2. Manage suppliers.

3. Manage customer demand.

4. Determine if outsourcing is beneficial or needed.

5. Identify problem in the supply chain and respond quickly

One option that is often underutilized is outsourcing, because it often has negative connotations.  Workers get nervous when management starts discussing outsourcing and they think, “there goes my job.”  When utilized correctly, outsourcing enables an organization to meet short term surge demands rather than turn down the work due to a lack of capacity.  If employed properly, outsourcing gives the operations manager another alternative to consider when aligning supply with demand.  In Unit 7 you will get the opportunity to delve into scheduling and supply chain management problems and evaluate alternatives based on holding costs and other factors.

Unit Learning Outcomes

1. Demonstrate how to determine capacity of a critical asset. (CLO 2, 3, 4, and 5)

2. Evaluate the capacity of an organization based on forecasting and adjust planning, scheduling and capacity management to accommodate the forecast. (CLO 3, 4, 5, 6, and 7)

3. Develop an executable action plan designed to improve aggregated planning, scheduling, and capacity management in organizations. (CLO 6 and 7)

4. Consider the ethical implications associated with making operational and supply chain management decisions.  (CLO 5)

Directions

End of Chapter Problems (60 points):  Answer the following end of chapter problems from the textbook:

Chapter 15 – problems 1 and 3 (page 688, 10 points each).

View the following example videos before working the problems:

https://canvas.park.edu/courses/62827/files/8248174/download?download_frd=1

https://canvas.park.edu/courses/62827/files/8248175/download?download_frd=1

1. A manager at Strateline Manufacturing must choose between two shipping alternatives: two-day freight and five-day freight. Using five-day freight would cost $135 less than using two-day freight. The primary consideration is holding cost, which is $10 per unit a year. Two thousand items are to be shipped. Which alternative would you recommend? Explain.

3. A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $500, and B for $525. In addition, A offers a three-day rate of $460 and a nine-day rate of $400, and B offers a four-day rate of $450 and a seven-day rate of $410. Annual holding costs are 35 percent of unit price. Three hundred boxes are to be shipped, and each box has a price of $140. Which shipping alternative would you recommend? Explain.

Chapter 16 – problems 1, 3, 6, and 8 (pages 725-726, 10 points each).

View the following example videos before working the problems:

https://canvas.park.edu/courses/62827/files/8248176/download?download_frd=1

https://canvas.park.edu/courses/62827/files/8248177/download?download_frd=1

1. Page 725Use the assignment method to determine the best way to assign workers to jobs, given the following cost information. Compute the total cost for your assignment plan.

	JOB
		A	B	C
	1	5	8	6
Worker	2	6	7	9
	3	4	5	3

3.Assign trucks to delivery routes so that total costs are minimized, given the cost data shown. What is the total cost?

	ROUTE
		A	B	C	D	E
	1	4	5	9	8	7
	2	6	4	8	3	5
Truck	3	7	3	10	4	6
	4	5	2	5	5	8
	5	6	5	3	4	9

6.The following table contains information concerning four jobs that are awaiting processing at a work center.

Job	Job Time (days)	Due Date (days)
A	14	20
B	10	16
C	7	15
D	6	17

1. Page 726Sequence the jobs using (1) FCFS, (2) SPT, (3) EDD, and (4) CR. Assume the list is by order of arrival.

2. For each of the methods in part a, determine (1) the average job flow time, (2) the average tardiness, and (3) the average number of jobs at the work center.

3. Is one method superior to the others? Explain.

8.The following table shows orders to be processed at a machine shop as of 8:00 a.m. Monday. The jobs have different operations they must go through. Processing times are in days. Jobs are listed in order of arrival.

a. Determine the processing sequence at the first work center using each of these rules: (1) FCFS, (2) S/O.

b. Compute the effectiveness of each rule using each of these measures: (1) average flow time, (2) average number of jobs at the work center.

Job	Processing Time (days)	Due Date (days)	Remaining Number of Operations
A	8	20	2
B	10	18	4
C	5	25	5
D	11	17	3
E	9	35	4