MA case study Essay

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• Capacity would not increase significantly; it would increase by 20,000 immediately, and could be brought up to 48,000 in twelve months

10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

3- As we can see the company would loss 0.52 cent per 1 kg if it decides to sell at 6.85 price and allocates the fixed expenses at 1.20 per 1 kg.

Supply and demand in the British Petroleum Company, constants in a great degree, and does not change

Production in factories is carried out in batches, where each batch is an integer number of drums set by you. The cost to produce one batch equals $1500 plus the number of drums in the batch times $1000. For example, the cost to produce a batch of 10 drums is $1500 + (10)$1000 = $11,500.

company’s finished goods inventory has shot up to a 60 days supply – twice the normal level. In addition,

The assembly line needs to produce 6 units per hour and there is room for only four workstations. The tasks and the order in which they must be performed are shown in the following table. Tasks cannot be split, and it would be too expensive to duplicate any task.

5. How would you go about deciding the appropriate batch size for the Stonehaven factory? What factors would you consider? How do they interrelate? (You may wish to do some calculations, but concentrate on thinking conceptually.)

1. What is the estimated project completion date? (Assume there are no holidays and ignore the sunk cost of the planning team’s effort)

Q.1) Compute the following quantities for the current production process as well as for Mike’s and Ike’s plans, assuming the plans are implemented as described in the case.

1) Correct the Economic Order Quantity (EOQ) and Reorder point (ROP) quantities for each of the five items mentioned in the case.

(FIFO) policy, minimum stock reorder for each item and periodic stock evaluation. One of the

1. Tyler’s total sales forecast for the nursery’s first full year of operations is 228,000 plants at an average sales price of $5 per plant. As a first approximation, assume that 30 percent of the firm’s customers will pay 10 days after the sale, 55 percent will pay on the 30th day, and 15 percent will pay on the 60th day.

Reasons for TEP’s inability to deliver all its products reliably within the target of one week are: