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- A company has a factory that is designed so that it is most efi cient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?Galaxy Candy Company manufactures two popular candy bars, the Eclipse bar and the Nova bar. Both candy bars go through a mixing operation where the various ingredients are combined, and the Coating Department where the bars from the Mixing Department are coated with chocolate. The Eclipse bar is coated with both white and dark chocolate to produce a swirled effect. A material shortage of an ingredient in the Nova bar limitsproduction to 300 batches per hour. Production and sales data are presented in the following table. Mixing CoatingAvailable capacity in hours 525 500Use of capacity in hours per batch of product: Eclipse 1.5 2.0 Nova…Thomas Pang Furniture produced 70,000 Executive chairs per week. The effective capacity is 71,000 chairs. The production line operates 5 days per week with two 6-hour shifts per day. The line was designed to process the Executive chairs at the rate of 1,200 per hour. Determine the design capacity, utilization and efficiency for this plant when producing the Executive chair. Thomas Pang Furniture now needs to increase production of the Executive chairs. A second production line will be added. Effective capacity on this second line is the same as the first line at 71,000 Executive chairs. The first line is operating at a higher efficiency but output on the second line will be no more than 75% because the crew will be primarily new hires. Determine the expected output of this second line.
- Sara James Bakery, described in Examples S1 and S2 , hasdecided to increase its facilities by adding one additionalprocess line. The firm will have two process lines, each working7 days a week, 3 shifts per day, 8 hours per shift, with effectivecapacity of 300,000 rolls. This addition, however, will reduce overall system efficiency to 85%. Compute the expected pro-duction with this new effective capacity.A company has a factory that is designed so that it is most eficient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?Cassidy Corporation is relocating its facilities. The company estimates that it will take three trucks to move office contents. If the per truck rental charge is $1,000 plus 25 cents per mile, what is the expected cost to move 800 miles? Select one: a. $3,600 b. $2,400 c. $1,200 d. $1,000
- In the bakery, we have established that design capacity is 30 pies per day and effective capacity is 20 pies per day. Currently, the bakery is producing 27 pies per day. What is the bakery’s capacity utilization relative to effective capacity?The Academic Computer Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1,928 students per semester and that the effective capacity equals 84% of the design capacity. If the number of students who actually got their orientation session is 1,317, what is the efficiency of the system?Medaas Electronics is a fictional producer of laserprinters. The company's production planner, ChristianMedaas, has developed the following cost data (in U.S. dollars)CostsRegular $ 80.00 Per printerOvertime $ 120.00 Per printerSubcontracting $ 140.00 Per printerInventory Carrying Cost: $ 10.00 per printer per monthProduction CapacityMonths Demand Regular Overtime Subcontracting1 3000 2500 500 6002 3200 2700 500 6003 1800 1000 300 6004 2700 2000 500 6005 3400 2600 500 6006 2200 1700 500 600Total 16300Christian Medaas has 600 Printers in Stock at the beginning of the planning period. Develop a least-cost production plan.No backorders are permitted.
- The MFA Co. Ltd. presently moves pallet loads of cans from production to the truck dock for loading. The loading dock foreman claims that due to increased production the company needs to purchase five new fork trucks and to hire five persons to operate these trucks. Using the present equipment (fork trucks) the maximum load of cans that can be transported is 1500 lb. at a 13.5” load center. The fork truck currently in use is manufacturer - rated for 3,000 lb. at the 24” load center. Question: Can the pallet load capacity be increased? What, if any, new equipment is required?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?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.
