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Concept explainers
A.J.’s Wildlife Emporium manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations
- Using the traditional method, which bases decisions solely on a product’s contribution to profits and overhead, what is the optimal product mix and what is the overall profitability?
- Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability?
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Chapter 5 Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
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- Tuff-Rider, Inc., manufactures touring bikes and mountainbikes in a variety of frame sizes, colors, and component com-binations. Identical bicycles are produced in lots of 100. Theprojected demand, lot size, and time standards are shown inthe following table: Item Touring MountainDemand forecast 5,000 units/year 10,000 units/yearLot size 100 units 100 unitsStandard processing time .25 hour/unit .50 hour/unitStandard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours a day, 5 days a week,50 weeks a year. It operates five workstations, each producingone bicycle in the time shown in the table. The shop main-tains a 15 percent capacity cushion. How many workstationswill be required next year to meet expected demand withoutusing overtime and without decreasing the firm’s currentcapacity cushion?arrow_forwardWhat is one important advantage of a Make-To-Stock process? Group of answer choices Can respond quickly to customer demand Creates greater flexibility Less likely to have obsolete inventory More environmentally sensitivearrow_forwardThe Chineke Group of Company manufactures two products, namely product B and product P, and provides you with the following information: Prod. B Prod. P Selling price per unit 80.00 50.00 Less cost of sales: Direct material A @ R5.00 per kg 15.00 10.00 Direct material B @ R4.00 per kg 8.00 12.00 Direct labour @ R6.00 per hour 12.00 6.00 Variable manufacturing overhead @ R5.00 per labour hour 10.00 5.00 Fixed manufacturing overhead per unit 5.00 5.00 Gross profit 30.00 12.00 Less sales & administrative costs: Variable 6.00 4.00 Fixed 10.00 5.00 Net profit per unit 14.00 3.00 Take note of the following constraints: Material A available 360 kg Material B available 360 kg Labour hours available…arrow_forward
- 2) BAQARAH Milk is fresh cow’s milk from Bangladesh’s first industrial hi-tech dairy farm which is equipped with the most advanced technology for milking cows and processing milk. All the cows are purebred Holstein Friesian from Australia. The farm ensures that milk is hygienically produced without human touch from milking to packing. It is instantly pasteurized to preserve the milk quality. The key features of BAQARAH milk is pure, fresh, low fat, free of antibiotic, free of toxin and of global standard. a) Which pricing strategy will be applicable for this product- price skimming or pricing penetration? Justify your position with three proper logics. b) In the given situation, which stage of buying decision process of consumers the company is trying to influence and how?arrow_forwardBhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: January 1 Quantity (pounds) January 31 Quantity (pounds) Work-in-Process Inventory Cost Cost Molding department Finishing department None None 5,000 $ 15,000 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Direct Costs of Production Materials Conversion Molding department Finishing department $ 450,000 $ 90,000 80,290 The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required: 1. Prepare…arrow_forward1. Which of the following quantities has no effect on the first period’s ATP calculation? a) Current on-hand Inventory b) Booked customer orders for the first periods c) MPS quantity for the first period d) Forecasted demand for the first period 2. Which one of the following is an MRP lot-sizing rule that attempts to minimize the amount to minimize the amount of average inventory? a) Periodic order quantity (POQ), WITH P=2 b)Fixed order quantity (FOQ) c) Economic order quantity (EOQ) d)Lot for Lot (L4L). 3. Which of the following statements about lot-sizing rules for MRP is true? a) The periodic order quantity (POQ) rule generates a higher level of average inventory since it creates inventory remnants. b) FOQ is a dynamic lot-sizing rule which reduces the amount of inventory, by doing a better job of matching the order quantity to the projected on-hand inventory quantity. c) The lot for lot rule minimizes inventory investment but maximizes the number of orders placed. d) In…arrow_forward
- Which of the following statements are correct about services and service design? Select ALL which are true. 1) Services can be more easily automated and transported than products. ) 2) The service delivery system should be designed primarily around the employees in the system. ) 3) Low-contact services can usually be made more efficient than high-contact services. 4) A service is produced and consumed simultaneously (at the same time).arrow_forwardCreate a business scenario/description. 2) Based on the business description created, construct an Order Processing flow chart that is appropriate for the business.arrow_forwardWhich of the following is a fixed cost? a) Direct materials b ) Direct labor c) Rent on factory building d) Variable manufacturing overheadarrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
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