A company that manufactures paving material for driveways and parking lots expects the following demand for its product for the next four weeks.Week number 1 2 3 4Material (tons) 40 80 60 70The company’s labor and machine standards and available capacities are as follows.Labor MachineProduction standard (hours per ton) 4 3Weekly production capacity (hours) 300 200 a. Determine the capacity utilization for labor and machine for each of the four weeks.b. In which weeks do you foresee a problem? What options would you suggest to resolve anyproblems? What costs are relevant in making a decision on choosing an option?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
A company that manufactures paving material for driveways and parking lots expects the following demand for its product for the next four weeks.
Week number 1 2 3 4
Material (tons) 40 80 60 70
The company’s labor and machine standards and available capacities are as follows.
Labor Machine
Production standard (hours per ton) 4 3
Weekly production capacity (hours) 300 200
a. Determine the capacity utilization for labor and machine for each of the four weeks.
b. In which weeks do you foresee a problem? What options would you suggest to resolve any
problems? What costs are relevant in making a decision on choosing an option?
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