When the effective capacity turns out to be much less than the theoretical capacity, why it is not an effective solution to aim for increasing the resources capacity as a means of increasing the process throughput?
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When the effective capacity turns out to be much less than the theoretical capacity, why it is not an effective solution to aim for increasing the resources capacity as a means of increasing the process throughput?
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- 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 pizzac. 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.Give an account of the capacity analysis's behavior when several processes run in parallel.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.
- The break-even point is:a) adding processes to meet the point of changing productdemands.b) improving processes to increase throughput.c) the point in dollars or units at which cost equals revenue.d) adding or removing capacity to meet demand.e) the total cost of a process alternative.The following processes - Tameka, Tamia, and Christian - have the following cost structure: Show all work in Excel with formulas Process Fixed Cost per Year Variable Cost per Unit Tameka $120,000 $3.00 Tamia 90,000 4.00 Christian 80,000 4.50 a. What is the most economical process for a volume of 8,000 units? b. How many units per year must be sold with each process to have annual profits of $50,000 if the selling price is $6.95 per unit? c. What is the break-even volume for each process?Formtech Inc. produces transformers. Each order is custom designed and manufactured for the customer. Each order goes through 3 phases: Transformer Design, which takes 4 weeks. Procurement, which has a lead time of 8 weeks. Assembly and Testing, which takes 4 weeks The design group can handle only 4 projects at any given time. The other groups are not capacity constrained. How much total work-in-process (number of projects started but not yet completed) does the company typically have? (Hint: Little's Law)
- 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 in Figure. Raw materials and purchased parts (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 work 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. Which of the four workstations, W, X, Y, or Z, has the highest aggregate workload, and thus…To what extent does the capacity analysis react when several processes are running in parallel?Krafts, Inc. uses the decentralized form of organization and considers each of its divisions as an investment center. Division A is currently selling 30,000 units of Part X annually, although it has sufficient production capacity to produce 42,000 parts per year. Variable manufacturing costs amount to P36 per part, while the total fixed costs amount to P180,000. These 30,000 parts are sold to outside market at P76 per part. Division S, also a part of the Krafts, Inc. has indicated that they would like to get from Division A 3,000 parts at a price of P74. Per part because they presently buying the parts from the outside supplier at that price. Assume that Division A could sell the entire 42,000 parts to outside market. What is the effect on the overall operating income of Krafts, Inc. if Division A will be required by the top management to sell 3,000 parts to Division S at a price of: a.) P36 b.)P74
- A firm has redesigned its production process so that it now takes 10 hours for a unit to be made. Using the old process, it took 15 hours to make a unit. If the process makes one unit each hour on average and each unit is worth $1,500, what is the reduction in work-inprocess value?The M–N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product uses raw materials with costs as shown. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Process times for each task are shown in the diagram. Each machine is available 2,500 minutes per week. There are no "Murphys" (major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant. Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses. a. Which machine is the constraint in this plant? multiple choice Machine A Machine C Machine B IncorrectTailwind, Inc., produces high-quality but expensive training shoes for runners. The Tailwind shoe, which sells for $210, contains both gas- and liquid-filled compartments to provide more stability and better protection against knee, foot, and back injuries. Manufacturing the shoes requires 10 separate tasks. There are 400 minutes available for manufacturing the shoes in the plant each day. Daily demand is 64. The information for the tasks is as follows: Task Performance Time (mins) Predecessors A 1 − B 3 A C 1 B D 4 B E 1 C, D F 3 A G 2 F H 5 G I 1 E, H J 3 I a) The efficiency of the assembly line with 5 workstations shown in the figure chosen above=(enter your response as a percentage rounded to one decimal place). b) The idle time for the assembly line per cycle =minute(s) (enter your…