Microeconomic Homework Assignment Essay
Microeconomic Homework Assignment
Chapter 13 – Discussion Question # 3, page 539: Define aggregate planning – Also known as aggregate scheduling is concerned with determining the quantity and timing of production for the intermediate future, often from 3 to 18 months ahead. Chapter 13 – Discussion Question # 5, page 539: List the strategic objectives of aggregate planning. Which one of these is most often addressed by the quantitative techniques of aggregate planning? For manufacturers, the aggregate schedule ties the firm’s strategic goals to production plans, but for service organizations, the aggregate schedule ties strategic goals to workforce schedules. Four things are needed for aggregate planning: – A logical overall unit for measuring sales and output, such as pounds of Doritos at Frito-Lay, air-conditioning units at GE, or cases of beer at Anheuser-Busch. -A forecast of demand for a reasonable intermediate planning period in these aggregate terms. -A method for determining the relevant costs. -A model that combines forecasts and costs so that scheduling decisions can be made for the planning period. Which one of these is generally the most important?
Chapter 14 – Discussion Question # 12, page 576: Identify five specific requirements of an effective MRP system. 1. Master production schedule (what is to be made and when) 2. Specifications or bill of material (materials and parts required to make the product) 3. Inventory availability (what is in stock) 4. Purchase orders outstanding (what is on order) 5. Lead times (how long it takes to get various components) Chapter 14 – Discussion Question # 13, page 576: What are the typical benefits of ERP? Allows companies to automate and integrate many of their business processes, share a common database and business practices throughout the enterprise, and produce information in real time. It also reduced transaction costs and fast, accurate information. Chapter 15 – Discussion Question # 4, page 610: Name five priority sequencing rules.
Explain how each works to assign jobs. First come, first served (FCFS): or first in, first out (FIFO): Jobs are sequenced in the order in which they arrive at the work station – Earliest due date CEDE): Jobs are sequenced in the d L which they are due for delivery to the – Shortest processing time (SPT): Jobs are sequenced in order of the processing time required at the work station, with the job requiting the least processing time at the work station scheduled first. – Longest processing time (LOT): Jobs are sequenced in order of the processing time required at the work stations with the job requiring the longest processing time at the work station scheduled first. – Critical ratio (CR): Jobs are sequenced in order of increasing critical ratio (the ratio of time required by work left to be done to time left to do the work)
Chapter 15 – Discussion Question #12, page 610: What are the advantages to finite capacity scheduling? By providing the scheduler with interactive computing and graphic output.
Chapter 15 – Problem #15.4, page 615: JC Howard’s medical testing company in Kansas wishes to assign a set of jobs to a set of machines. The following table provides the production data of each machine when performing the specific job: MACHINE _ JOB A B C D 1 7 9 8 10 2 10 9 7 6 3 11 5 9 6 4 9 11 5 8
(a) Determine the assignment of jobs to machines that will maximize total production.
(b) What is the total production of your assignments?
Chapter 16 – Discussion Question # 1, page 643: What is JIT? Meaning Just-in-time I an approach of continuous and forced problem solving via a focus on throughput and reduced inventory. Chapter 16 – Discussion Question # 7, page 643: How does TPS (Toyota Production System) contribute to competitive advantage? TPS contributes to competitive advantage through: suppliers, layout, inventory, scheduling, preventive maintenance, quality production, employee empowerment, commitment of management and employees TPS emphasizes employee learning and empowerment in an assembly-line environment.
Chapter 16 – Discussion Question # 8, Page 643: What are the characteristics of just-in-time (JIT) partnerships with respect to suppliers? JIT partnering with suppliers; few suppliers; nearby suppliers; repeat business with the same suppliers; analysis to enable desirable suppliers to become/stay price competitive; competitive bidding mostly limited to new purchases; buyer resists vertical integration and subsequent wipeout of supplier business; and suppliers are encouraged to extend JIT buying to their suppliers.
Heizer, J. and Render, B. (2011). Operations Management (10th ed.). Upper Saddle River, NJ. Pearson Education Inc. Ch. 13, 14, 15, 16