. Suppose a manager is using maximum EMV as a basis for making a capacity decision and, in the process, obtains a result in which there is a virtual tie between two of the seven alternatives. How is the manager to make a decision?

. Suppose a manager is using maximum EMV as a basis for making a capacity decision and, in the process, obtains a result in which there is a virtual tie between two of the seven alternatives. How is the manager to make a decision?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 12P

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Introduction to service marketing

Organizations that provide products or products to their consumers use service marketing to enhance brand recognition and revenue. In contrast to product marketing, service marketing promotes intangible transactions that add value to clients. Advertisers utilize efficient service marketing methods to gain client trust and demonstrate how their product may benefit them. Service marketing is interaction and value-based marketing.

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A manufacturer of ballet shoes has determined that its production facility has a design capacity of 300 shoes per week. Theeffective capacity, however, is 230 shoes per week. What is themanufacturer’s capacity utilization relative to both design andeffective capacity if output is 200 shoes per week?
EMV APPLIED TO CAPACITY DECISION Southern Hospital Supplies, a company that makes hospital gowns, is considering capacity expansion.APPROACH: c Southern’s major alternatives are to do nothing, build a small plant, build a medium plant, or build a large plant. The new facility would produce a new type of gown, and currently the po-tential or marketability for this product is unknown. If a large plant is built and a favorable market ex-ists, a profit of $100,000 could be realized. An unfavorable market would yield a $90,000 loss. However, a medium plant would earn a $60,000 profit with a favorable market. A $10,000 loss would result froman unfavorable market. A small plant, on the other hand, would return $40,000 with favorable marketconditions and lose only $5,000 in an unfavorable market. Of course, there is always the option of doingnothing.Recent market research indicates that there is a .4 probability of a favorable market, which meansthat there is also a .6 probability of an…
Explain and expand these importance of capacity planning. 1. Capacity decisions often involve long-term commitment of resources and the fact that, once they are implemented, those decision may be difficult or impossible to modify without incurring major costs. 2. Capacity decisions can affect competitiveness. 3. Capacity affects the ease of management.
Effective capacity is: Multiple Choice a. also called theoretical capacity. b. base capacity plus time for maintenance, breaks, and absenteeism. c. the amount of capacity that can be used in planning for actual output. d. All of these choices are correct.
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A school district has forecast student enrollment for several years into the future and predicts excess capacity of 2000 students. The school board has said that the only alternative is to close a school. Evaluate the school board’s decision and provide three alternative options to utilize excess capacity.
What do you understand by capacity planning? Explain the decision tree modeling for capacity expansion
An airline company must plan its fleet capacity and long-term schedule of aircraft usage. For oneflight segment, the average number of customers per day is 70, which represents a 65 percentageutilization rate of the equipment assigned to the flight segment. If demand is expected toincrease to 84 customers for this flight segment in three years, and management requires acapacity cushion of 25 percent, calculate the following: i. the planned capacity requirement. ii. the maximum number of customers the flight segment can accommodate.iii. the efficiency rate of the flight segment assuming that the current effective capacity of theflight segment is 93 customers.
1: Suppose the company has identified the following three possible demand scenarios: Demand (Units per year) Probability 25,000 0.3 60,000 0.4 100,000 0.3 1. If the capacity is set at 80,000, how much of a capacity cushion is here? What is the capacity utilization? 2. What is the probability of idle capacity if the capacity is 80,000? 3. If it costs $25 per units lost business and $50 to build a unit of capacity, how much capacity should be built to minimize total cost?