Brown’s, a local bakery, is worried about increased costs—particularly energy. Last year’s records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not believe things have changed much, but she did invest an additional $3,000 for modifications to the bakery’s ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery’s productivity to see if the modifications were beneficial. You have the following data to work with: LAST YEAR NOW Production (dozen) 1,500 1,500 Labor (hours) 350 325 Capital investment ($) 15,000 18,000 Energy (BTU) 3,000 2,750 Taras Vyshnya/Shutterstock

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Operations Management: Sustainabil...

12th Edition
Jay Heizer + 2 others
Publisher: PEARSON
ISBN: 9780134130422
BuyFind

Operations Management: Sustainabil...

12th Edition
Jay Heizer + 2 others
Publisher: PEARSON
ISBN: 9780134130422

Solutions

Chapter 1, Problem 9P
Textbook Problem

Brown’s, a local bakery, is worried about increased costs—particularly energy. Last year’s records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not believe things have changed much, but she did invest an additional $3,000 for modifications to the bakery’s ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery’s productivity to see if the modifications were beneficial. You have the following data to work with:

  LAST YEAR NOW
Production (dozen) 1,500 1,500
Labor (hours) 350 325
Capital investment ($) 15,000 18,000
Energy (BTU) 3,000 2,750

Chapter 1, Problem 9P, Browns, a local bakery, is worried about increased costsparticularly energy. Last years records can

Taras Vyshnya/Shutterstock

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