Concept explainers
a)
To determine: The approximate time needed to plan for a restaurant.
Introduction:
Capacity planning:
It is the method of planning the required production output, based on the requirement or the demand that is predicted.
a)
Explanation of Solution
It takes approximately 1 year to plan for a restaurant, as the complex and size is limited. The facility of the restaurant can be leased.
b)
To determine: The approximate time needed to plan for a hospital.
Introduction:
Capacity planning:
It is the method of planning the required production output, based on the requirement or the demand that is predicted.
b)
Explanation of Solution
It takes approximately 2 years to plan for a hospital, as the design is complex.
c)
To determine: The approximate time needed to plan for a oil-refinery.
Introduction:
Capacity planning:
It is the method of planning the required production output, based on the requirement or the demand that is predicted.
c)
Explanation of Solution
It takes 5 years to plan for an oil-refinery, as the government regulation and design is complex. Also, it has a great deal of land.
d)
To determine: The approximate time needed to plan for a toy factory.
Introduction:
Capacity planning:
It is the method of planning the required production output, based on the requirement or the demand that is predicted.
d)
Explanation of Solution
It takes one or two years to plan for a toy factory. If the building is leased, the required time will be less. The time required is based on the size of the building.
e)
To determine: The approximate time needed to plan for an electric power plant.
Introduction:
Capacity planning:
It is the method of planning the required production output, based on the requirement or the demand that is predicted.
e)
Explanation of Solution
It takes five years to plan for an electric power plant, as the government regulation and the design is complex. For the electric power plant, the public approval is required, which would slow down the process.
f)
To determine: The approximate time needed to plan for a public school.
Introduction:
Capacity planning:
It is the method of planning the required production output, based on the requirement or the demand that is predicted.
f)
Explanation of Solution
It takes few years to plan for the public school, as the general public is involved in the process.
g)
To determine: The approximate time needed to plan for a private school.
Introduction:
Capacity planning:
It is the method of planning the required production output, based on the requirement or the demand that is predicted.
g)
Explanation of Solution
It takes a year to plan for a private school, as the design is simple.
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Chapter 11 Solutions
OPERATIONS MANAGEMENT(LL)-W/CONNECT >IC<
- What is facility layout? Choose a business that you would be interested in opening in your community. How would you decide where to locate that business? What would you be most concerned about in making this choice?arrow_forwardExplain how can facility layout design help in improving productivity and reducing production lead time?arrow_forwardWhat types of facilities/capacity are needed?arrow_forward
- Both service and manufacturing organizations are required to evaluate capacity. Explain at least three of the major capacity considerations for a hospital. Provide an evaluation on how hospital capacity considerations differ from a factory. [no chatgpt answer]arrow_forwardExplain the concept of understanding the business's current capabilities in terms of capacity planning.arrow_forwardStapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, and for proposal B, $34,000. The variable cost for A is $10, and for B, $14. The revenue generated by each unit is $18.a) What is the crossover point in units for the two o ptions?b) At an expected volume of8,300 units, which alternative shouldbe chosen?arrow_forward
- (a). In 200 words or more, explain the importance of location strategy to an organization. (b). Pick an organization currently in operations. Explain what type of layout strategy you view they adopt, and why you think they use that strategy. (c). Layout strategies provide several strategic advantages for an organization. Pick one advantage listed in the text and discuss how you would apply it if you were an operations manager in an organization.arrow_forwardFor capacity planning, how may a spreadsheet be utilized?arrow_forwardDescribe a facility you are familiar with in your work (or past work), its layout, efficiencies, inefficiencies, and challenges. Finally, if given the opportunity, how could you improve the facility’s layout to increase productivity and/or lower costsarrow_forward
- What are theoretical capacity, rated capacity, utilization, and efficiency? How are they related?arrow_forwardThe owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet.She has studied three locations. Each would have the same labor and materials costs (food, servingcontainers, napkins, etc.) of $1.30 per sandwich. Sandwiches sell for $2.10 each in all locations.Rent and equipment costs would be $5,100 per month for location A, $5,550 per month for location B, and $5,800 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $8,500. LOCATION Monthly volume A. ______________ B. _______________ C. _______________ b. If expected sales at A, B, and C are 19,500 per month, 21,500 per month, and 22,500 per month respectively, calculate the profit. Location Montly Profits A. ___________________ B. ____________________ C. ____________________ Which location would yield the greatest…arrow_forwardService operations often face more difficulty in planning than their manufacturing counterparts.However, service does have certain advantages that manufacturing often does not. Explain serviceplanning difficulty, and the advantages and disadvantages.arrow_forward
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