Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the fim expects to achieve an efficiency level for the cranks of 85%. What is the expected weekly outnut of crank
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- As an operations management consultant, you have been asked to evaluate a furniture manufacturer’s cash to cash conversion cycle under the following assumptions: sales of $23.5 million, cost of goods sold of $20.8 million, 50 operating weeks a year, total average on hand inventory of $2,150,000, accounts receivable equal to $2,455,000, and accounts payable of $3,695,000. What do you conclude? What recommendations can you make to improve performance? What would be the impact of reducing the accounts payable from $3,695,000to $2,000,000 and all other data remained the same? Please show in detail these impacts quantitatively in your answers.As a Program Manager, you have been asked to evaluate a furniture manufacturer’s cash to cash conversion cycle under the following assumptions: sales of $23.5 million, cost of goods sold of 420.8 million, 50 operating weeks a year, total average on hand inventory of $2,150,000, accounts receivable equal to $2,455,000, and accounts payable of $3,695,000. What do you conclude? What recommendations can you make to improve performance? What would be the impact of reducing the accounts payable from $3,695,000to $2,000,000 and all other data remained the same? Please show in detail these impacts quantitatively in your answers.Frank’s Contract Bakery measured her 2021 Cost of Goods Sold to be 6516265. Her Average Aggregate Inventory Value on raw materials was 2,310,000, work in process (WIP) was 1,500,000 and the finished goods was 1,400,000. Last year Days of Supply is: No decimals
- 1. Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firmoperates 12 hours per day, five days per week. Due to regularly scheduledpreventive maintenance, the firm expects the machine to be running duringapproximately 95% of the available time. Based on experience with other products,the firm expects to achieve an efficiency level for the cranks of 75%. What is theexpected weekly output of cranks for this company? 2. An executive conference center has the physical ability to handle 1,500 participants.However, conference management personnel believe that only 1,300 participants can behandled effectively for most events. The last event, although forecasted to have 1,300participants, resulted in the attendance of only 1080 participants. a. Calculate the utilization rate of the conference facility. b. Calculate the efficiency of the conference facility.Ashby Associates is an architectural firm located in Barbados that has been in practice only a few years. The market for architectural services is very competitive. To compete successfully, Ashby must deliver quality services at a low cost. Ashby presents the following data for 2018 and 2019.2018 20191. Number of jobs billed 40 502. Selling price per job $32,000 $30,0003. Architect labour hours 24,000 27,0004. Cost per architect labour hour $35 $365. Architect/software support capacity (number of jobs the firm can do) 60 606. Total cost of software-implementation support $168,000 $180,0007. Software-implementation support-capacity cost per job (row 6/row5) $2,800 $3,000Architect labor-hour costs are variable costs. Architect (software) support costs for each year depend on the Architect support capacity that Ashby chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year. i. Is…1. The Kintampo Tourist Resort (KTR) is one of Ghana’s best holiday centers and sells a special type of souvenir called Expensive. As you might expect, the demand for Expensive is highly seasonal as tourist centers exhibit a highly seasonal attraction pattern, with peaks during the summer months. The following forecasts are available for Expensive.Inventory carrying cost = GH¢3 per piece per quarter Production per employee = 1000 piece per quarter Regular workforce = 50 workersCost of regular production = GH¢50 per piece Hiring cost per employee = GH¢75Firing cost per employee = GH¢100 The management of KTR does not wish to use Level production nor Chase Demand but wants to adopt one of the following strategies:Strategy I: Produce 71,000 pieces in Quarter 1, Produce 151,000pieces in Quarter 2, Produce 200,000 pieces in Quarter 3,and Produce 30,000 pieces in Quarter 4.Strategy II: Produce 51,000 pieces in Quarter 1, Produce 161,000pieces in Quarter 2, Produce 210,000 pieces in Quarter…
- Emarpy Appliance is a company that produces all kinds of major appliances. Bud Banis, the presidentof Emarpy, is concerned about the production policy for thecompany’s best-selling refrigerator. The annual demand hasbeen about 8,000 units each year, and this demand has beenconstant throughout the year. The production capacity is 200units per day. Each time production starts, it costs the company $120 to move materials into place, reset the assemblyline, and clean the equipment. The holding cost of a refrigerator is $50 per year. The current production plan calls for 400refrigerators to be produced in each production run. Assumethere are 250 working days per year.a) What is the daily demand of this product?b) If the company were to continue to produce 400 units eachtime production starts, how many days would productioncontinue?c) Under the current policy, how many production runs peryear would be required? What would the annual setup costbe?d) If the current policy continues, how many…Dr. Good wants to help his patients be healthy. In the past, he has allowed them to comeinto the office for free healthcare screenings and tests. He now has the opportunity toprovide free full-body CT scans and full gene mapping. The CT scan would normally costabout $4,000 and the gene mapping about $10,000. He is not certain whether he shouldoffer these new services. Most of the preventive tests and immunizations that headministered in the past were inexpensive but produced significant benefits. He thinks manyof his patients would take advantage of the new tests, but is it the right thing to do?Discussion Questions 1. How is this an example of diminishing returns in healthcare?Dr. Good wants to help his patients be healthy. In the past, he has allowed them to comeinto the office for free healthcare screenings and tests. He now has the opportunity toprovide free full-body CT scans and full gene mapping. The CT scan would normally costabout $4,000 and the gene mapping about $10,000. He is not certain whether he shouldoffer these new services. Most of the preventive tests and immunizations that headministered in the past were inexpensive but produced significant benefits. He thinks manyof his patients would take advantage of the new tests, but is it the right thing to do?Discussion Questions Would you recommend that Dr. Good offer the new tests? Why or why not?