A manager facen peak (weekly) demand for one of her operations, but is not sure how long the peak will last She can either use overtime from the currentworkforce, or hirelayoff one temporary worker and just pay regular-time wages Regular-time pay is $500 per week overtime is 5800 per week, the hiring cost is$3,000, and the layoff cost is $2,000 Use breakeven analysis to solve this problemWhat is the fixed cost for the regular time option?S Enter your reaponae as an integer)

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Answered: A manager faces peak (weekly) demand…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A manager faces peak (weekly) demand for one of her op-erations, but is not sure how long the peak will last. She caneither use overtime from the current workforce, or hire/lay off and just pay regular-time wages. Regular-time pay is$500 per week, overtime is $750 per week, the hiring cost is$2,000, and the layoff cost is $3,000. Assuming that peopleare available seeking such a short-term arrangement, howmany weeks must the surge in demand last to justify a tem-porary hire? Hint: Use break-even analysis (see SupplementA, “Decision Making”). Let w be the number of weeks ofthe high demand (rather than using Q for the break-evenquantity). What is the fixed cost for the regular-time option?Overtime option?
Cathy’s Coney Islands operates seven days per week.Demand is relatively constant during the week and tails off onthe weekend. She estimates that she needs fi ve employees Mondaythrough Friday, and two employees on Saturday and Sunday. Sheis committed to giving each employee two consecutive days offduring the week. Develop a workforce schedule for Cathy
A manager faces peak (weekly) demand for one of her op-erations, but is not sure how long the peak will last. She caneither use overtime from the current workforce, or hire/lay off and just pay regular-time wages. Regular-time pay is$550 per week, overtime is $825 per week, the hiring cost is$2,000, and the layoff cost is $3,000. Assuming that peopleare available seeking such a short-term arrangement, howmany weeks must the surge in demand last to justify atemporary hire? Hint: Use break-even analysis (see Supple-ment A, “Decision Making Models”). Let w be the numberof weeks of the high demand (rather than using Q for thebreak-even quantity). What is the fixed cost for the regular-time option? Overtime option?
A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product AnnualDemand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number. Omit the "$" sign.) Total…
A). A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm sells the product for $150 per unit. What is the break-even point for this operation? What is the profit (or loss) on a demand of 200 units per year? B). A newly opened bed-and-breakfast projects the following: Monthly fixed costs $10,000 Variable cost per occupied room per night $40 Revenue per occupied room per night $165 How many rooms would have to be occupied per month in order to break even?
A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product AnnualDemand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 Click here for the Excel Data File a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole…
Your hospital has built a new freestanding facility that includes a 36-bed medical telemetry care unit. The patients and staff from the existing smaller units will be combine into the new unit. The current budget for each of these units is: unit a- average daily census 11.9 unit b- average daily census 22.0 unit a- acuity 1.6 unit b- acuity 1.85 unit a- workload 3.8 unit b-workload 3.6 unit a- productivity % 19.0 unit b- productivity % 16.5 the budgets of the two units will be combine with no changes. Calculate the budget for the new unit including the ADC, acuity, workload, hours per patient day (HPPD), shifts/24 hours, productivity factor and variable direct care full time equivalents.
A manager must decide which type of machine to buy, A, B, or C. Machines costs are as follows: Machine Cost A $40,000 B $30,000 C $80,000 Product forecast, processing times on the machines, and setup times are as follows: Processing Time Per Unit (minutes) Product Annual Demand A B C Setup Times (minutes) Production Lots (units) 1 16,000 3 4 2 20 200 2 12,000 4 5 3 35 100 3 6,000 5 6 3 60 50 4 30,000 2 4 1 15 500 Machines operate 10 hours a day, 250 days a year. The manager wants to have a capacity cushion of 10%. a. Assume that only purchasing costs are being considered. Which machines would have the lowest total cost, and how many of that machines would be needed? b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $11 each, B machines have an hourly operating cost of $10 each, and C machines have an hourly operating cost of $12 each. Which alternative would…
Jack has gathered the following information for Work Center 2, the work center that directly feeds Work Center 3. Complete the input/output analysis of Work Center 2. Input Information(in hours) 4 5 6 7 8 Planned input 60 70 70 80 80 Actual input 15 25 25 30 30 Output Information(in hours) 4 5 6 7 8 Planned output 40 70 70 80 80 Actual output 45 45 45 55 80 Backlog165 hours Jack has asked you to calculate the following for Work Center 2. Calculate the percentage of available output that was actually accomplished (actual output/planned output) at Work Center 2.(Round your answers to 1 decimal place, e.g. 17.5.) 4 5 6 7 8 Actual outputPlanned output · 100% enter percentages % enter percentages % enter percentages % enter percentages % enter percentages %
Geoffrey owns a small shop that sells cups of frozen yogurt in the university. Geoffrey owns three frozen-yogurt machines. His other inputs are refrigerators, frozen-yogurt mix, cups, sprinkle toppings, and, of course, workers. He estimates that his daily production function when he varies the number of workers employed (and at the same time, of course, yogurt mix, cups, and so on) is as shown in the accompanying table. i What are the fixed inputs and variable inputs in the production of cups of frozen yogurt? ii. Draw the total product curve for Geoffrey’s yoghurt shop iii. Compute the marginal product for Geoffrey’s workers
What are some capacity measures and constraints for each of the following? Which company do you work for on one that you know well. Give a brief description of what the firm does then evaluate the capacity measures and constraints that exist for capacity.
Jack has gathered the following information for Work Center 2, the work center that directly feeds Work Center 3. Complete the input/output analysis of Work Center 2. Input Information(in hours) 4 5 6 7 8 Planned input 60 70 70 80 80 Actual input 15 25 25 30 30 Output Information(in hours) 4 5 6 7 8 Planned output 40 70 70 80 80 Actual output 45 45 45 55 80 Backlog165 hours Jack has asked you to calculate the following for Work Center 2. alculate the percentage of planned input that actually happened [(actual input + backlog)/(planned input + backlog)] at Work Center 2.(Round your answers to 1 decimal place, e.g. 17.5.) 4 5 6 7 8 Actual input + Backlog Planned input + Backlog · 100% enter percentages % enter percentages % enter percentages % enter percentages % enter percentages %

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