Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 1, Problem 50AP
Summary Introduction
To determine: Comparison of purchasing costs and production costs of thekeyboard’s supplier firm and the break-even order quantity.
Introduction:A firm attains its break-even level when its earned revenue or sales quantity meets the cost. This is the point of no profit no loss.In other words, on this level, the firm earns zero profit.
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A company wants to develop a level production plan. The beginning inventory iszero. Demand for the next four periods is given in what follows.a. What production rate per period will give a zero inventory at the end of period 4?b. When and in what quantities will backorders occur?c. What level production rate per period will avoid backorders? What will be the ending inventory in period 4?
Dominos is planning to introduce two new pizzas (Cauliflower and Calamari). Financial data related to producing these two new pizzas are summarized in the table below.
a. If these two new pizzas are sold such that the ratio of Cauliflowers over Calamaris is 4:3, what is the break-even point?
b. If the product mix has changed to five Cauliflowers to five Calamaris, what would happen to the break-even point?
c. In order to maximize the profit, which product mix should be pushed?
d. If both pizzas must go through the same oven and there are only 30,000 oven hours available per period, which product should be pushed to market? Assume that Cauliflower pizza takes 30 minutes and Calamari pizza takes 15 minutes in the oven.
Cauliflower Pizza
Calamari Pizza
Selling Price
$10
$12
Variable Costs
$5
$10
Fixed Costs
$2,000
$600
6.
Laura is trying to decide whether to sell her knitted hats on Etsy, at a holiday bazaar, or in a local boutique. Demand could be 0 hats/month, 10 hats/month, or 20 hats/month. Given the payoff matrix below, what is her decision under equally likely?
Demand = 0
Demand = 10
Demand = 20
Etsy
-$70
$80
$230
Bazaar
-$60
$90
$240
Boutique
-$80
$70
$220
Select one:
a.
Etsy and boutique.
b.
Etsy only.
c.
Etsy and bazaar.
d.
Bazaar and boutique.
e.
All 3 are equally good.
f.
Bazaar only.
g.
None of them are good options.
h.
Boutique only.
Chapter 1 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 1.3 - Prob. 1PCh. 1.3 - Prob. 2PCh. 1.3 - Prob. 3PCh. 1.3 - Prob. 4PCh. 1.3 - Prob. 5PCh. 1.3 - Prob. 6PCh. 1.3 - Prob. 7PCh. 1.3 - Prob. 8PCh. 1.3 - Prob. 9PCh. 1.3 - Prob. 10P
Ch. 1.3 - Prob. 11PCh. 1.3 - Prob. 12PCh. 1.7 - Prob. 13PCh. 1.7 - Prob. 14PCh. 1.7 - Prob. 15PCh. 1.7 - Prob. 16PCh. 1.7 - Prob. 17PCh. 1.7 - Prob. 18PCh. 1.7 - Prob. 19PCh. 1.7 - Prob. 20PCh. 1.7 - Prob. 21PCh. 1.8 - Prob. 22PCh. 1.8 - Prob. 23PCh. 1.8 - Prob. 24PCh. 1.9 - Prob. 25PCh. 1.9 - Prob. 26PCh. 1.9 - Prob. 27PCh. 1.9 - Prob. 28PCh. 1.10 - Prob. 29PCh. 1.10 - Prob. 30PCh. 1.10 - Prob. 31PCh. 1.10 - Prob. 32PCh. 1.10 - Prob. 33PCh. 1.10 - Prob. 34PCh. 1.10 - Prob. 35PCh. 1.10 - Prob. 36PCh. 1.10 - Prob. 37PCh. 1.11 - Prob. 38PCh. 1.11 - Prob. 39PCh. 1.11 - Prob. 40PCh. 1.11 - Prob. 41PCh. 1.11 - Prob. 42PCh. 1 - Prob. 43APCh. 1 - Prob. 44APCh. 1 - Prob. 45APCh. 1 - Prob. 46APCh. 1 - Prob. 47APCh. 1 - Prob. 48APCh. 1 - Prob. 49APCh. 1 - Prob. 50AP
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