National Technological Institute of Mexico

Querétaro Campus
Present(s):

Name Control Number

Student(s) of the degree(s):

Industrial Engineering

Registered in:

Matter Group
Operations Management II 4V

Teacher:

Rafael Sánchez Arciniega

Work:

TASK NO.1

Delivery date:

Santiago de Querétaro, February 10, 2022

13.1 Prepare a graph of the monthly forecasts and the forecasted demand
monthly for Chicago Paint Corp., manufacturer of specialized paints for
artists.
Demand forecast
Demand per month=
Production days
Expected total demand 13,950
Average requirement= = =55.35
Number of production days 252

Days of Demand Forecast for

Me
production the demand month
January 22 1000 45.45
February 18 1100 61.11
March 22 1200 54.55
April 21 1300 61.90
May 22 1350 61.36
June 21 1350 64.29
July 21 1300 61.90
August 22 1200 54.55
September 21 1100 52.38
October 22 1100 50.00
November 20 1050 52.50
December 20 900 45.00
252 13950 55.35

70

60

50

40

30

20

10

0
Demand per day
 13.9 The PVyO team from Kansas Furniture received the following estimate from the
demand requirements:
a) Assuming that the costs of stockouts due to lost sales are $100 per
unit, the costs of maintaining the inventory are $25 per unit per month, and the
final inventory is null, evaluate these two plans according to the costs
incremental.

COSTS
Plan A Plan B
Costs of
$100 for
missing by Subcontracting $60 June Production $1,300
unity
lost sales
Cost of
$25 for $3,000 for 100
maintain the Constant rate $1,000 Hiring
unit/month units
inventory
$6,000 for 100
Final Inventory - Dismissals
units

Plan A: produce at a constant rate (equal to the minimum requirements)

of 1000 units per month and subcontract additional units at a cost
extra $60 per unit.

Demand Production Subcontracting Inventory

Month Missing
a n n the final
July 1000 1000 0 0 0
August 1200 1000 200 12000 0
September
1400 1000 400 24000 0
e
October 1800 1000 800 48000 0
November
1800 1000 800 48000 0
e
December 1800 1000 800 48000 0
3000 180000 0

Costs Calculations
Maintain the inventory
(0 units held in the
0
inventory at $25 per unit
Lost sales costs
0 (0 x $100 per unit)
for shortages
Subcontracting
180,000 (3,000 subcontracts x $60)
Total cost 180,000
Plan B: vary the workforce to meet the demand for the month
previous. The company produced 1300 units in June. The cost of hiring
additional workers earn $3000 for 100 units produced. The
The cost for layoffs is $6000 for 100 fewer units.
3,000
Cost of hiring subcontractors per unit= =$30 per unit
100
$6,000
Cost of dismissing workers per unit= =$60 per unit
100

Inventory Inventory
Month Demand Production Missing Hire Dismissals
initial final
June 0 1300 0 0 0 0 0
Julio 1000 1300 0 300 0 0 0
August 1200 1000 300 100 0 0 300
September
1400 1200 100 0 100 200 0
e
October 1800 1400 0 0 400 200 0
November 1800 1800 0 0 0 400 0
December 1800 1800 0 0 0 0 0
400 500 800 300

Costs Calculations
Maintain the inventory
=(400 units held in the
10,000
inventory at $25 per unit
Lost sales costs
50,000 (500 x $100 per unit)
for shortages
Hiring cost =(800 subcontracting x $30 per
24,000
unit
Cost of dismissal
18,000 =(300 x $60 per unit)
Total cost 102,000

Note: In the month of the change, both hiring costs and...

of dismissal; that is to say, going from a production of 1300 in July to 1000 in
In August, layoffs (and their associated costs) of 300 units are required.
August; in the same way as moving from a production of 1000 in August
at 1200 in September, hiring is required (with its costs)
related) of 200 units in September.
b) Which plan is better and why?
The best plan is B, as the cost is lower.
13.11 Deb Bishop Health and Beauty Products developed a new shampoo and
you must prepare an aggregated program. The accounting department of
cost provided the relevant cost for the aggregate plan, and the department of
Marketing provided a forecast for four quarters. The information
previously shown below.
Your job is to develop an aggregate plan for the next four quarters.
Costs
Previous quarter production 1500 units
Initial inventory 0 units
Cost for shortages or for delayed orders $50.00 per unit
Cost of maintaining inventory $10.00 per unit remaining at the end of the quarter
Hiring of workers $40.00 per unit
Termination of employees $80.00 per unit
Unit cost $30.00 per unit
Extra time $15.00 extra per unit
Subcontracting Not available

a) First, try a pursuit plan by hiring and firing

workers as needed (to meet the forecast).
Cost
Cost
Demand Cost additional
Quarter additional Total
a unitary for
due to dismissal
hire
0 1500 - - - -
(1400)(30) = (100)(80) =
1 1400 - 50,000
42,000 8,000
(1200)(30) (200)(80) =
2 1200 - 52,000
36,000 16,000
(300)(40) =
3 1500 (1500)(30) = - 57,000
45,000 12,000
(200)(80) =
4 1300 (1300)(30) = - 55,000
39,000 16,000
Total - 162,000 40,000 12,000 214,000
 Cost-sharing+Additional cost for layoffs+ Additional cost for hiring=162,000+ 40,000+12,000=214

b) Then try a plan that maintains constant employment.

Cost of maintaining the inventory=total inventory(10)

Cost per
Inventory Cost
Trimestre Producción Demanda Inventario to maintain
total unitary
inventory
0 1500 - - - -

1500*30 =
1 1500 1400 100 100 1,000
45,000

2 1200 300 300+100=400 4,000 1500*30 =

1500
45,000

3 1500 - 400 4,000 1500*30 =

1500
45,000

4 1300 200 400+200=600 6,000 1500*30 =

1500
45,000
Total - 15,000 180,000

Total cost=Total cost of maintaining inventory+Total unit cost=15,000+180,000=195,000

c) What is the most economical plan for Deb Bishop Health and Beauty
Products?
Plan B, since it has a lower cost to implement, with a difference of 19,000.
that the plan A
13.13 Ram Roy's company has developed the following supply data,
demand, costs, and inventory. Using the transportation method of programming
linear, assign the production capacity that satisfies the demand at the cost
minimum. What is the cost? Assume that the initial inventory has no cost of
to maintain and that late orders are not allowed.
Demand
Time Time Subcontracting
Period forecast
regular extra n
a
1 30 10 5 40
2 35 12 5 50
3 30 10 5 40

Initial inventory 20 units

Regular time cost per unit $100
Costo de tiempo extra por unidad $150
Cost of outsourcing per unit $200
Cost of maintaining inventory per unit per month $4

DEMAND FOR
Capacity
OFERTA DE TOTAL
Capacity
available
Month 1 Month 2 My 3 that I do not know

usa
0 4 8
Initial inventory 20
20
100 104 108
Regular time 30
20 10
150 154 158
Month 1 Extra time X 10 10
200 204 208
Subcontracting X 5 5
100 104
Regular time 35 35
X
150 154
My 2 Extra time 5 7 12
X
200 204
Subcontracting 5 5
X
100
Regular time 30 30
X X
150
My 3 Extra time 10 10
X X
200
Subcontracting X 5 5
X X
Total Demand 40 50 40 32 162
 Minimum cost=20( 0 ) +20 ( 100 ) +10 ( 104 ) +35 ( 100 ) +5 ( 150 ) +30 ( 100 ) +10 (150 )=11,790

13.17 Yu Amy Xia developed a special vacuum bag to prolong the

freshness of the seafood sent to the restaurants. Yu obtained the following
cost and demand data:
You decide that the initial inventory of 250 units will incur a cost of 20¢ each.
unit of each of the previous trimesters (in contrast to most of the
companies, where a unit cost of 0 is assigned.
Forecast Time Time Subcontracting
Quarter
o regular extra n
1 500 400 80 100
2 750 400 80 100
3 900 800 160 100
4 450 400 80 100
Initial inventory 250 units
Regular time cost per unit $1.00 /unit
Cost of overtime per unit $1.50/unit
Cost of subcontracting per unit $2.00/unit
Cost to maintain inventory per unit is $0.50/unit/quarter
month
Cost for delayed orders $0.50/unit/quarter

a) Find the optimal plan using the transportation method

linear programming.

DEMAND OF Capacity
TOTAL
Offer of Capacity
Quarter Quarter Quarter Quarter that I do not know available
1 2 3 4 (offer)
usa
0.2 0.40 0.60 0.80
Initial inventory 250
100 150
1 1.2 1.4 1.60
Regular time 400 400
Quarter 1.50 1.7 1.9 2.1
Extra time 80
1 X 80
2 2.20 2.4 2.60
Subcontracting X 100 100
1 1.20 1.4
Regular time 400 400
X
Quarter 1.50 1.7 1.9
Extra time 80 80
2 X
2 2.2 2.4
Subcontracting 100 100
X
 1 1.20
Regular time 800 800
X X
Quarter 2 1.50 1.7
extra time 40 100 20 160
3 X
2 2.2
Subcontracting X 100 100
X X
1
Regular time 400 400
X X X
Quarter 1.50
Extra time 50 30 70
4 X X X
2
Subcontracting X 100 100
X X X
Total Demand 500 750 900 450 450 3,050

b) What is the cost of the plan?

TRIMESTER CONCEPT TOTAL

1 100(0.2)+400(1) = 420
2 150(0.4)+80(1.7)+400(1)+80(1.5)+40(2) = 796
3 800(1)+100(1.5) = 950
4 400(1)+50(1.5) = 475
TOTAL 2,641

c) Is there any regular time capacity left unused? If so, what?

quantity and in what periods?
No, all of them are used.
d) What is the number of backorders in units and in money?
40 units in the third quarter and this amounts to $20 (40*$0.50).