Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem 13P
Kim Epson operates a full-service car wash, which operates from 8 A.M. to 8 P.M., 7 days a week. The car wash has two stations: an automatic washing and drying station and a manual interior cleaning station. The automatic washing and drying station can handle 30 cars per hour. The interior cleaning station can handle 200 cars per day. Based on a recent year-end review of operations, Kim estimates that future demand for the interior cleaning station for the 7 days of the week, expressed in average number of cars per day, would be as follows:
By installing additional equipment (at a cost of $50,000), Kim can increase the capacity of the interior cleaning station to 300 cars per day. Each car wash generates a pretax contribution of $4.00. Should Kim install the additional equipment if she expects a pretax payback period of three years or less?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Galaxy Candy Company manufactures two popular candy bars, the Eclipse bar and the Nova bar. Both candy bars go through a mixing operation where the various ingredients are combined, and the Coating Department where the bars from the Mixing Department are coated with chocolate. The Eclipse bar is coated with both white and dark chocolate to produce a swirled effect. A material shortage of an ingredient in the Nova bar limitsproduction to 300 batches per hour. Production and sales data are presented in the following table. Mixing CoatingAvailable capacity in hours 525 500Use of capacity in hours per batch of product: Eclipse 1.5 2.0 Nova…
Southeastern Airlines's daily flight from Atlanta toCharlotte uses a Boeing 737, with all-coach seating for 120 people.In the past, the airline has priced every seat at $140 for theone-way flight. An average of 80 passengers are on each flight.The variable cost of a filled seat is $25. Aysajan Eziz, the newoperations manager, has decided to try a yield revenue approach,with seats priced at $80 for early bookings and at $190 for bookingswithin 1 week of the flight. He estimates that the airline willsell65 seats at the lower price and 35 at the higher price. Variablecost will not change. Which approach is preferable to Mr. Eziz?
Checkers plans to open its first “dark store” later this year to support growing demand for its Sixty60 on-demand grocery app. A dark store is a retail outlet that exists exclusively to support on-demand deliveries. It does not have a store front or retail customers, but purely assists with order fulfilment.It will be in Bree Street in Cape Town’s central business district, and comes as the group considers the capacity of its store base to meet the growing demand from SA’s leading grocery app.
Discuss the role of the corporate parent and the management of a multi business organisation
Chapter 4 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - The Dahlia Medical Center has 30 labor rooms, 15...Ch. 4 - A process currently services an average of 50...Ch. 4 - An airline company must plan its fleet capacity...Ch. 4 - Food Goblin Supermarkets use both cashiers and...Ch. 4 - Returning to Problem 4, under both assumption of...Ch. 4 - Purple Swift manufactures birdhouses in lots of...Ch. 4 - Macon Controls produces three different types of...Ch. 4 - Up, Up, and Away is a producer of kites and wind...
Ch. 4 - Tuff-Rider, Inc. manufactures touring bikes and...Ch. 4 - Arabelle is considering expanding the floor area...Ch. 4 - The Astro World amusement park has the opportunity...Ch. 4 - Kim Epson operates a full-service car wash, which...Ch. 4 - MKM International is seeking to purchase a new CNC...Ch. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Dawson Electronics is a manufacturer of high-tech...Ch. 4 - A manager is trying to decide whether to buy one...Ch. 4 - Acme Steel Fabricators experienced booming...Ch. 4 - Referring to Problem 7, the operations manager at...Ch. 4 - Darren Mack owns the Gas n’ Go convenience store...Ch. 4 - Prob. 25PCh. 4 - Prob. 1VCCh. 4 - Prob. 2VCCh. 4 - How does Southwest Airlines know they are...Ch. 4 - Prob. 4VCCh. 4 - Prob. 1CCh. 4 - Prob. 2CCh. 4 - Prob. 3C
Additional Business Textbook Solutions
Find more solutions based on key concepts
2. In what circumstances might a market-pull approach or a technology-push approach to new-product design be th...
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
What is precedent, and how does it affect common law?
Business in Action (8th Edition)
What is precedent, and how does it affect common law?
Business in Action
2. Identify four people who have contributed to the theory and techniques of operations management.
Operations Management
What are the three major business functions, and how are they related to one another? Give specific examples.
Operations Management, Binder Ready Version: An Integrated Approach
2. Identify four people who have contributed to the theory and techniques of operations management.
Operations Management: Sustainability and Supply Chain Management (12th Edition)
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
- Thomas Pang Furniture produced 70,000 Executive chairs per week. The effective capacity is 71,000 chairs. The production line operates 5 days per week with two 6-hour shifts per day. The line was designed to process the Executive chairs at the rate of 1,200 per hour. Determine the design capacity, utilization and efficiency for this plant when producing the Executive chair. Thomas Pang Furniture now needs to increase production of the Executive chairs. A second production line will be added. Effective capacity on this second line is the same as the first line at 71,000 Executive chairs. The first line is operating at a higher efficiency but output on the second line will be no more than 75% because the crew will be primarily new hires. Determine the expected output of this second line.arrow_forwardRecently, Walmart offered a wireless data contract based on bandwidth used, with a minimummonthly charge of $45 for up to 5 gigabytes (GB) of use. Additional GB can be purchased at the following rates: $12 for an additional 1 GB, $30 for an additional 3 GB, and $40 for a capacity of 10 GB.What is the cost for a user who is expecting to use 9 GB?arrow_forwardThe Administration of the Uconn school of Business must plan the school’s course offerings for the fall semester. Student demands make it necessary to offer at least 30 undergraduate and 20 graduate courses in the term. Faculty contracts also dictate that at least 60 courses be offered in total. Each undergraduate course taught costs the college an average of $2,500 in faculty wages, and each graduate course costs $3,000. What are the dual prices for each resource? Please do fast ASAP fastarrow_forward
- give two service examples in which the optimal capacity utilisation and maximal capacity utilisation might be differentarrow_forwardBob Carlton’s golf camp estimates the following staff requirements for its services over the next 2 years. Each certified instructor puts in 480 hours per quarter regular time and can work an additional 120 hours overtime.Regular-time wages and benefits cost Carlton $7,200 per employee per quarter for regular time worked up to 480 hours,with an overtime cost of $20 per hour. Unused regular timefor certified instructors is paid at $15 per hour. There is nocost for unused overtime capacity. The cost of hiring, training, and certifying a new employee is $10,000. Layoff costs are$4,000 per employee. Currently, eight employees work in thiscapacity.a. Find a staffing plan using the level strategy that allows forno delay in service. It should rely only on overtime and theminimum amount of undertime necessary. What is thetotal cost of this plan?b. Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost ofthis plan?c. Propose a better…arrow_forwardJingani Pottery Company is a small crafts operation run by a Native American tribal council. The company employs skilled artisans to produce clay bowls and mugs with authentic North American designs and colors. The two primary resources used by the company are special pottery clay and skilled labor. Given these limited resources, the company desires to know how many bowls and mugs to produce each day in order to maximize profit. The two products have the following resource requirements for production and profit per item produced.arrow_forward
- Fred Ferrell is the store manager of the Right-Way Supermarket in Beaumont, a small suburban area of some 1,300 families. The store’s staff consists of a produce manager, a meat manager and butcher, five checkers, four stockers, and a receiving clerk. The store operates six days per week from 9 a.m. to 9 p.m. Last week Ferrell hired Amy Caldwell to replace the store’s receiving clerk. Since graduating from high school last June, Amy has worked for one other supermarket full-time. She applied for the job at Right-Way to gain new experiences and because the job paid $1 more per hour than she was making at the other store. Amy likes the retail food business and hopes one day to manage a store of her own. She plans to start school again next fall. After two 10-hour days of training under Mr. Ferrell, Amy felt she knew the operation and procedures well enough to proceed on her own. But Mr. Ferrell thought otherwise. For the rest of Amy’s first week, Mr. Ferrell was looking over Amy’s…arrow_forwardThe owners of Backstreets Italian Restaurant are considering starting a delivery service for pizza and their other Italian dishes in the small college town where they are located. They can purchase a used delivery van and have it painted with their name and logo for $21,500. They can hire part-time drivers who will work in the evenings from 5 P.M. to 10 P.M. for $8 per hour. The drivers are mostly college students who study at the restaurant when they are not making deliveries. During the day, there are so few deliveries that the regular employees can handle them. The owners estimate that the van will last 5 years (365 days per year) before it has to be replaced and that each delivery will cost about $1.35 in gas and other maintenance costs (including tires, oil, scheduled service, etc.). They also estimate that on average each delivery order will cost $15 for direct labor and ingredients to prepare and package, and will generate $34 in revenue. 1.a) How many delivery orders must…arrow_forwardExplain how flexible capacity as per demand can be created in each of the following services a) A fitness gym and b) A water parkarrow_forward
- System Options. JR Davidson recently started a practice in Landscape Design and is considering the purchase of an automated drafting system. JR can purchase a system with three possible drafting capacities. The payoffs for having any of these systems depend on the demand for drafting services over the next few years. The costs for each system are shown as follows along with JR’s assessment of the probabilities that demand will match the capacity of each one. Total Cost Probability Small system $11,000 0.29 Medium system $14,000 0.22 Large system $20,000 0.49 Working at capacity, each system would generate net cash flow at a yearly rate of 50% of its total cost. If a system is chosen that is smaller than demand, it would work at capacity. If a system is chosen that is larger than demand, revenue from the system would be limited by demand. For convenience, JR has initially decided to count cash flow for three years, without discounting. For example, if…arrow_forwardAirspace Airlines is a regional passenger airline operating in the southeastern United States. It operates as an independent airline between certain origin/destination pairs but also operates as a contract carrier for Delta out of the Atlanta airport. Airspace currently has a fleet of aging turboprop aircraft with an average capacity of 35 passengers. The aver- age trip length for Airspace is 250 miles. Airspace employs only Airline Pilot Association union pilots. Jim Gray is the vice president of operations for Airspace and is faced with the chal- lenge of minimizing the impacts of fuel and labor costs on Airspace operating profits. The operating cost per seat mile for his fleet of aircraft is approximately $0.12. Mainte- nance costs are 15 percent of operating costs and are higher than the industry average. Pilot wages average $45 per hour. Airspace averages 50 departures per day out of the Atlanta airport. Delta has approached Airspace about increasing the number of departures it…arrow_forwardAirspace Airlines is a regional passenger airline operating in the southeastern United States. It operates as an independent airline between certain origin/destination pairs but also operates as a contract carrier for Delta out of the Atlanta airport. Airspace currently has a fleet of aging turboprop aircraft with an average capacity of 35 passengers. The aver- age trip length for Airspace is 250 miles. Airspace employs only Airline Pilot Association union pilots. Jim Gray is the vice president of operations for Airspace and is faced with the chal- lenge of minimizing the impacts of fuel and labor costs on Airspace operating profits. The operating cost per seat mile for his fleet of aircraft is approximately $0.12. Mainte- nance costs are 15 percent of operating costs and are higher than the industry average. Pilot wages average $45 per hour. Airspace averages 50 departures per day out of the Atlanta airport. Delta has approached Airspace about increasing the number of departures it…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,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
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
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