Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
bartleby

Concept explainers

bartleby

Videos

Question
Book Icon
Chapter 1.11, Problem 41P

a.

Summary Introduction

To determine: The ideal timing for making additions in plant and the optimal size to make each addition.

Introduction: Based on the past experiences, a chemical firm can evaluate the present and the future circumstances of the firm. It can also predict the optimal timing to make additions in plant and the optimal size of each addition mathematically.

b.

Summary Introduction

To determine: The cost of each addition incurred by the chemical firm.

Introduction: In the process of determining optimal timing of plant additions and the optimal size of each addition, the chemical firm has also to bear some costs in addition of each optimal plants. This can be enumerated arithmetically.

c.

Summary Introduction

To determine: The present value of the next four future additionsof the chemical firm.

Introduction: The process of adding optimal plants is money consuming strategy of the chemical firm. While evaluating this process, the present value of the next few future additions can be calculated.

Blurred answer
Students have asked these similar questions
You have been asked to estimate the cost of 100 prefabricated structures to be sold to a local school district. Each structure provides 1,000 square feet offloor space, with 8-feet ceilings. In 1999, you produced 70 similar structures consistingof the same materials and having the same ceiling height, but each provided only 800square feet of floor space. The material cost for each structure was $25,000 in 1999, andthe cost capacity factor is 0.65. The cost index values for 1999 and 2006 are 200 and 289,respectively. The estimated manufacturing cost for the first 1,000-square-foot structureis $12,000. Assume a learning curve of 88% and use the cost of the 50th structure asyour standard time for estimating manufacturing cost. Estimate the total material costand the total manufacturing cost for the 100 prefabricated structures.
The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturing requirements (in thousands of gallons) for the next four quarters are 80, 50, 80, and 130, respectively. A level workforce is desired, relying only on anticipation inventory as a supply option. Stockouts and backorders are to be avoided, as are overtime and undertime.a. Determine the quarterly production rate required to meet total demand for the year, and minimize the anticipation inventory that would be left over at the end of the year. Beginning inventory is zero.b. Specify the anticipation inventory that will be produced.c. Suppose that the requirements for the next four quarters are revised to 80, 130, 50, and 80, respectively. If total demand is the same, what level of production rate is needed now, using the same strategy as part (a)?
Solve the following:1. A manufacturer of ballet shoes has determined that its production facility has a design capacity of 300 shoes per week. The effective capacity, however, is 230 shoes per week. What is themanufacturer’s capacity utilization relative to both design andeffective capacity if output is 200 shoes per week?2. EKG Software Development Corporation has determined that itneeds to expand its current capacity. The decision has come downto whether to expand now with a large facility, incurringadditional costs and taking the risk that the demand will notmaterialize, or to undertake a small expansion, knowing that thedecision will have to be reconsidered in five years. Managementhas estimated the following chances for demand:• The likelihood of demand being high is 0.60.• The likelihood of demand being low is 0.40.Profits for each alternative have been estimated:• Large expansion has an estimated profitability of either Php1,000,000 or Php 600,000, depending on whether…
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY