# Describe the operations management issue in the ABC Manufacturing

For this assessment, suppose that you are the operations manager for ABC Manufacturing, a small manufacturing company founded three years ago. ABC has been manufacturing and selling an electric motor for the past year, but the company has not always had sufficient workers assigned to manufacturing this electric motor in order to satisfy demand. ABC’s president asked you to plan for the production of this motor for the next six months.

You have decided you will use a level aggregate plan for the electric motor, meaning that you will manufacture the same number of units each month. ABC’s president has told you that some customers order this motor well in advance of when needed, and thus it is allowable to have backorders, if needed. You know there are currently 150 units in inventory (starting inventory = SI), and ABC’s marketing manager estimates that the demand for the motor (in units) for each of the next six months (M = 6) will be 240, 225, 265, 270, 260, and 275 (D1, D2, D3, D4, and D5 respectively). You have decided you would like to reduce average inventory level of several products (including this one), and you want to have 50 units in inventory six months from now (ending inventory = EI).

Directions

Briefly describe the operations management issue in the ABC Manufacturing scenario and describe how you would approach an analysis. Then complete the following problems based on the scenario and provide answers to the algebraic equations.

Question 1. Refer to the ABC Manufacturing scenario to complete the following:

·
Provide the algebraic equation for the monthly aggregate production rate (APR, using SI, EI, D1, D2, D3, D4, D5, and M as variables).

·
Calculate and provide the numerical monthly aggregate production rate rounded to a whole number.

Question 2. Production employees at ABC work an average of 168 hours per month (HPM), and manufacturing the electric motor involves 3.5 total hours of work per unit (HPU).

·
Provide the algebraic equation for the number of workers (W) needed to meet the above aggregate production rate (using W, APR, HPM, and HPU as variables).

·
Calculate and provide the numerical number of workers needed.

Question 3. One subcomponent in this electric motor is also used in two other products manufactured by ABC. ABC’s president has told you that the company expects to use 5,400 (annual quantity = AQ) of these subcomponents during the next 12 months, with a consistent demand for them month-to-month (and a consistent demand during each month, with the business day daily demand, DQ, being 22). He has further told you that it costs \$10 to place an order (order cost = OC) for this subcomponent (regardless of the quantity ordered), that the annual holding cost is \$2 per unit (unit holding cost = UHC). Finally, he has stated that out of 21 business days per month, there is a five business day lead time (LT = 5) associated with ordering this subcomponent.

#Describe #operations #management #issue #ABC #Manufacturing

Pages (275 words)
Standard price: \$0.00

### Latest Reviews

Impressed with the sample above? Wait there is more

Related Questions

### Think of your favorite stores and discuss the following: What

Think of your favorite stores and discuss the following: What do they do that encourages your loyalty? What do you like about the in-store experience?

### Need comprehensive editing of draft: Identify a moral ambiguity in your chosen story and explain its dimensions. Be

Need comprehensive editing of draft:Identify a moral ambiguity in your chosen story and explain its dimensions. Be specific in explaining why the situation is morally

### Choose one of the following discussion question options and answer all questions related to it.Please review the Discussion Rubric for

Choose one of the following discussion question options and answer all questions related to it.Please review the Discussion Rubric for detailed requirements of your posts.

### Discussion Question: Consider a popular supplement you and/or your family and

Discussion Question: Consider a popular supplement you and/or your family and friends take. Can you think of a supplement that is commonly taken that could

### Create a cover letter for your portfolio. Imagine that you

Create a cover letter for your portfolio. Imagine that you are interviewing for a nurse manager position in your institution. Write a cover letter,

Term-Paper Guidelines g:        World Civilizations,   3500BC-1600AD       It is to be between (a full) 5 and 7 (full) pages

### Staff augmentation can regularly be mistaken for managed services. It’s

Staff augmentation can regularly be mistaken for managed services. It’s a completely unique way to deal with asset acquisition. Organizations re-appropriate the administration of numerous

### 2 Page APA FORMAT Paper Summarizing How Politics Became Our Identity: Uncivil Agreement by Lillana Mason. DUE TOMORROW 11132020 Before

2 Page APA FORMAT Paper Summarizing How Politics Became Our Identity: Uncivil Agreement by Lillana Mason. DUE TOMORROW 11/13/2020 Before 5 PM. Chapters 1-3. Each

### Prior to beginning work on this discussion forum, watch the

Prior to beginning work on this discussion forum, watch the video, Ray Dalio: How to Build a Company Where the Best Ideas Win (Links to

Video link here : http://www.youtube.com/watch?v=KDEpF8IKxEM Watch the entire video on Miami Dade’s Boot Camp. When did this boot camp open?  Why is it the last

### obesity prevention in children

Listed below are criteria that you will use to critique research articles pertinent to your research area of interest. Discuss how the investigator satisfied each

### Assignment: Agenda Comparison Grid and Fact Sheet or Talking Points

Assignment: Agenda Comparison Grid and Fact Sheet or Talking Points Brief It may seem to you that healthcare has been a national topic of debate

New questions