OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9781259326738
Author: SCHROEDER
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 13DQ
Summary Introduction
To calculate: The different possible combinations for the car manufacturer and the actions that can be taken to limit the number of combinations without affecting the choices of the customers.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose a car you want to buy has five choices for interior colors, three types of radios, three engine choices, two battery types (regular and heavy-duty), 10 exterior colors, two transmission choices, and four types of wheel covers. How many possible combinations of there are possible for the manufacturer? What can be done to limit the number of combinations without limiting customer choice?
Works Inc. designs industrial tooling parts and makes the molds for those parts. The following activities take place when the company creates a new mold. Classify each cost as unit level (U), batch level (B), product/process level (P), or organizational level (O).
Consultation with equipment manufacturer on design specifications
Engineering design of mold
Creating mold
Moving materials from warehouse for test quantity
Direct materials for test quantity to judge conformity to design specifications
Inspecting test quantity
Preparing design specification changes based on test molds
Depreciating small kiln used solely for test quantities
Depreciating manufacturing building
Par Inc., is a small manufacturer of golf equipment and supplies. Par's distributor believes a market exists for both a medium-priced golf bag, referred to as a standard model, and a high-priced golf bag, referred to as a deluxe model. The distributor is so confident of the market that, if Par can make the bags at a competitive price, the distributor will purchase all the bags that Par can manufacture over the next three months. A careful analysis of the manufacturing requirements resulted in the following table, which shows the production time requirements for the four required manufacturing operations and the accounting department's estimate of the profit contribution per bag:
PRODUCTION TIME (HOURS)
PRODUCT, CUT & DYE, SEWING, FINISHING, INSPECTION & PACKAGING, PROFIT/BAGSTANDARD 7/10, 1/2, 1, 1/10, DELUXE 1, 5/6, 2/3, ¼
The director of manufacturing estimates that 630 hours of cutting and dyeing time, 300 hours of sewing time, 708 hours of finishing time, and 270 hours of…
Chapter 3 Solutions
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
Knowledge Booster
Similar questions
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?arrow_forwardScenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forwardDerby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 22 per unit Variable costs 5 per unit Fixed costs 25,000 per month Assume that the projected number of units sold for the month is 7,000. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will the operating profit be? d. Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?arrow_forward
- What is the purpose of the SCOR Model and what are the five basic functions of the SCOR Model?arrow_forwardA. Jack’s Grocery is manufacturing a ‘store brand’ item that has a variable cost of $0.75 per unit and a selling price of $1.25 per unit. Fixed costs are $12,000. Current volume is 50,000 units. The firm can substantially improve product quality by adding a new piece of equipment at an additional fixed cost of $5,000. Variable cost would increase to $1.00 but their volume should increase to 70,000 units due to the higher quality product. Should the company buy the new equipment? B. What are the two breakeven points [both in dollars and in units] for the two processes considered in the problem in (a) above? C. Develop a breakeven chart for the problem in (a) above. D. Bweupe & Sons has fixed costs of K10, 000 for the period. Their direct labour cost is K1.50 per unit and material input cost is K0.75 per unit. The selling price per unit is K4.00. i. Calculate the Break-Even point in units. ii. What does it translate to in Kwacha?arrow_forwardNapp Landscape Services offers designing and building home landscaping services, and will manage and maintain the landscape to. Over time many of its clients have seen their landscapes grow and mature, and they have worked with Napp to further enhance their landscape to meet their dream outdoors space. Napp offers tangible and core product levels to its clients, and also offers services to meet what additional product levels? Responses 1. personalized and promised core product levels 2. aspirational and augmented product levels 3. augmented and promised product levelsarrow_forward
- Non-physical fences refer to the product differences that may be due to different prices such as seat location in a theater, or the size & furnishing of a hotel room. True or False?arrow_forwardplease answer in details within 30 minutes as to why the option is right and why other options are wrong.arrow_forwardConsider the following costs of Zula Ltd over the relevant range of 5 000 to 2 0000 units produced.Units produced 5 000 10 000 15 000 20 000Variable cost $200 000 ? ? ?Fixed cost $1 800 000 ? ? ?Total ? ? ? ?Cost per unitVariable cost ? ? ? ?Fixed cost ? ? ? ?Total ? ? ? ?RequiredComplete the above tablearrow_forward
- What is the difference between a positive differentiating factor and a negative one? Is it possible for an item to simultaneously have both positive and negative differentiating factors?arrow_forwardMr. Omar is a sales manager in Al Noor Company. He decided to drop the production of product A because he found that it is unprofitable. This is an advantage of:arrow_forwardplease answer in details within 30 minutes. stating why the option is correct and why other options are wrong.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
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