Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 18P
Summary Introduction
Interpretation: Of the given data and information, determine the week the plant was more productive.
Concept Introduction: The multifactor productivity enables an organization to identify how effective their processes are as it computes and involves all the costs involved in the production process.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The Blah Cafe operates a restaurant location in Fresno, CA where they serve food in an eclecticcasual blah whatever setting. Blah Cafe analyzes their operations in two seasonal periods – Spring& Summer being the first seasonal period and Fall & Winter being the second. The averagemonthly demand, with revenue and variable cost figures for both the seasonal periods is given in the data tableAs can be seen in the Table, demand is pretty high and robust in the Spring and Summer season,with demand falling in the Fall and Winter season.1. Help Blah Cafe develop an EXCEL spreadsheet model to determine the break-even point*demand quantity for each of the seasonal periods. Explain how you found the break-evenpoint. Should the restaurant be kept open during the Fall & Winter months? Explain.*At the Breakeven Point (demand), Total Revenue = Total Costs (or at Breakeven Point,Profit = zero).
2. Now given current demand for each season, what fixed cost will justify keeping therestaurant…
A company manufactures a product using two machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 225 units per day. Annual demand is currently 50,000 units. It is forecasted that within two years, annual demand will triple. How many cells should the company plan to produce to satisfy predicted demand under these conditions? Assume 240 workdays per year.
A 1,500,000 SF plant employs 300 people and produces 242,000 LCD panel per month. The plant isidle, on average, 2 months each year for maintenance, repairs, and retooling. The plant has fixed costs of $3,000,000 per month and variable costs of $90 per LCD panel. What is the total operating cost for the plant per YEAR? Express your answer in $ to the nearest $1 million.
_________
Chapter 2 Solutions
Practical Operations Management
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5P
Ch. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 1.1QCh. 2 - Prob. 1.2QCh. 2 - Prob. 1.3QCh. 2 - Prob. 2.1QCh. 2 - Prob. 2.2QCh. 2 - Prob. 2.3QCh. 2 - Prob. 3.1QCh. 2 - Prob. 3.2QCh. 2 - Prob. 3.3QCh. 2 - Prob. 3.4Q
Knowledge Booster
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
- Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. Year 1 2 3 4 5 Forecast demand 62 84 86 90 90 Currently the manufacturer has seven machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 20 minutes to produce. What is the effective capacity of the factory? Round your answer down to the nearest whole number. units/year Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity. Round your answers to the nearest whole number. Year 1 2 3 4 5 Extra capacity needed (units) Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number.…arrow_forwardSusan Williams runs a small Flagstaff job shopwhere garments are made. The job shop employs eight workers.Each worker is paid $10 per hour. During the first week ofMarch, each worker worked 45 hours. Together, they produceda batch of 132 garments. Of these gam1ents, 52 were "seconds"(meaning that they were flawed). The seconds were sold for $90each at a factory outlet store. The remaining 80 garments weresold to retail outlets at a price of $198 per gannent. What wasproductivity, in dollars per labor-hour, at this job shop duringthe first week of March?arrow_forwardOperations can be classified according to their volume and variety of production as well as the degree of variation and visibility. Which of the following operations would be classified as high volume, low variety? A) A front office bank B) A family doctor C) A carpenter D) A fast food restaurant Note- need the correct option without explanation as fast as you can!!arrow_forward
- A company has a factory that is designed so that it is most efi cient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?arrow_forwardMark Tuan, the Production Manager at MT Mills, can currently expect his operation to produce1000 square yards of fabric for each ton of raw cotton. Each ton of raw cotton requires 5 laborhours to process. He believes that he can buy a better-quality raw cotton, which will enable himto produce 1200 square yards per ton of raw cotton with the same labor hours.What will be the impact on productivity (measured in square yards per labor-hour) if hepurchases the higher quality raw cotton? You are required to calculate: a) Productivity for the current raw cotton? b) The new productivity if Mark Tuan use the new raw cotton. c) What is the percentage increase in productivity?arrow_forwardThis year the Druehl, Inc., will produce 57,600 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer will work 160 hours per month. If the labor productivity at the plant is 0.15 hot water heaters per labor-hour, how many laborers are employed to the plantarrow_forward
- A company has a factory that is designed so that it is most eficient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?arrow_forwardThe Banana Box plant produces 500 banana boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to productivity? O A. It has decreased by 8.3%. O B. It has not changed. O C. It has decreased by 9.1%. O D. It has increased by 37.5 boxes/hr. O E. It has increased by 20%.arrow_forwardOperations managers are primarily concerned with forecasts of demand, which are often made byarrow_forward
- A company makes two products X and Y, using a single resource pool. The resource is available for 8 hours a day. The unit loads for X and Y are 15 and 30 minutes per unit, respectively. If the company decide to produce X only, calculate the hourly, and the daily capacity. Repeat the hourly and daily capacity calculation for product Y only, similarly (meaning that if this company was about to only produce Y, how many units per hour and per day it could produce?) The company wishes to produce both products, but not at equal portions. 60% X’s and 40% Y’s is desired for production. At the indicated percentages, what is the daily capacity of this company? Hint 1: find the weighted unit load based on the given portions and apply that in the effective capacity formula. Hint 2: It will be a mistake to allocate 60% of the available time to produce X. Rather, apply hint 1 to make sure the resulting production will be 60% from X units and 40% from Y’s.arrow_forwardPlease do not give solution in image format thanku A hamburger factory produces 2,569 hamburgers each week. Assume there are 42 working weeks per year. The equipment used for making hamburgers costs $60,642 and will remain productive for 5 years. The factory has 10 employees and the average monthly salary is $4,000 per person. The average utility cost for the factory is $4,199 per month. What is the factory's multi-factor productivity, in terms of equipment and utility? Please full solve numbers only keep in three decimals if not exact either round up or downarrow_forwardA company makes two products X and Y, using a single resource pool. The resource is available for 8 hours a day. The unit loads for X and Y are 15 and 30 minutes per unit, respectively. If the company decides to produce X only, calculate the hourly, and the daily capacity. Repeat the hourly and daily capacity calculation for product Y only, similarly (meaning that if this company was about to only produce Y, how many units per hour and per day it could produce? The company wishes to produce both products, but not at equal portions. 60% X’s and 40% Y’s is desired for production. At the indicated percentages, what is the daily capacity of this company? Hint 1: find the weighted unit load based on the given portions and apply that in the effective capacity formula. Hint 2: It will be a mistake to allocate 60% of the available time to produce X. Rather, apply hint 1 to make sure the resulting production will be 60% from X units and 40% from Y’s.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY