Georgetown Pizza makes favorite pan pizzas every day with three working shifts around the clock. The current completely cooked pizza making process has a fixed cost of $24,000, and a variable cost of $2.75 per pizza. The owner is considering a different process that can make pizzas in two ways: completely cooked and selling at $13.98 per unit, or partially cooked with a selling price of $12.98 per unit. This alternate process has a fixed cost of $28,000, but a lower variable cost (because much less energy is used in baking) of $2.25 per pizza c. If the owner expects to get $390,000 as a half year profit, how many units of completely cook pizzas, should Georgetown sell a year using the current pizza making process? d. Determine the annual design capacity for Georgetown’s production if the completely cook pizzas can be produced at 120 units per hour.

Georgetown Pizza makes favorite pan pizzas every day with three working shifts around the clock. The current completely cooked pizza making process has a fixed cost of $24,000, and a variable cost of $2.75 per pizza. The owner is considering a different process that can make pizzas in two ways: completely cooked and selling at $13.98 per unit, or partially cooked with a selling price of $12.98 per unit. This alternate process has a fixed cost of $28,000, but a lower variable cost (because much less energy is used in baking) of $2.25 per pizza c. If the owner expects to get $390,000 as a half year profit, how many units of completely cook pizzas, should Georgetown sell a year using the current pizza making process? d. Determine the annual design capacity for Georgetown’s production if the completely cook pizzas can be produced at 120 units per hour.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 42P

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Georgetown Pizza makes its favorite pan pizzas every day with three working shifts around the clock. The current completely cooked pizza-making process has a fixed cost of $24,000, and a variable cost of $2.75 per pizza. The owner is considering a different process that can make pizzas in two ways: completely cooked and selling at $13.98 per unit, or partially cooked with a selling price of $12.98 per unit. This alternate process has a fixed cost of $28,000, but a lower variable cost (because much less energy is used in baking) of $2.25 per pizza. a. Determine the breakeven quantity between the current pizza-making process and the alternate process.
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Yost-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to working on that workstation alone and is paid $15 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week. Workstation W, with a total load time of ____ minutes. (Enter your response as an integer.)
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Can you think of any method to maximize the machine's output while minimizing its downtime?
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