Question 4a. A fleet repair facility has the capacity to repair 800 trucks per month. However, due toscheduled maintenance of their equipment, management feels that they can repair no more than600 trucks per month. Last month, two of the employees were absent several days each and only400 trucks were repaired. What are the utilization and efficiency of the repair shop?b. Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, thefirm expects the machine to be running during approximately 95% of the available time. Basedon experience with other products, the firm expects to achieve an efficiency level for the cranksof 85%. What is the expected weekly output of cranks for this company?c. Discuss five (5) techniques that can be used to manage capacity in the short-term

Given: Total Capacity to repair trucks=800 Maximum trucks that could be repaired=600 Actual Trucks…

a. A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each and only 400 trucks were repaired. What are the utilization and efficiency of the repair shop?

a. A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each and only 400 trucks were repaired. What are the utilization and efficiency of the repair shop?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.5IP

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