Operations Management
14th Edition
ISBN: 9781260238891
Author: Stevenson
Publisher: MCG
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Chapter 5, Problem 14P
The following diagram shows a four-step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation.
a. Determine the capacity of this process.
b. Which action would yield the greatest increase in process capacity. (1) increase the capacity of Operation 1 by 15 percent, (2) increase the capacity of Operation 2 by 10 percent; or (3) increase the capacity of Operation 3 by 10 percent?
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The following diagram shows a four step process that begins with Operation 1 and ends with
Operation 4. The rates shown in each box represent the effective capacity of that operation
a. Determine the capacity of this process.
b. Which action would yield the greatest increase in process capacity: (1) Increase the
capacity of Operation 1 by 15%; (2) Increase the capacity of Operation 2 by 10%; and (3)
Increase the capacity of Operation 3 by 10%.
Operation 1
(20 units/hr)
Operation 2
(18 units/hr)
Operation 3
(24 units/hr)
Opera tion 4
(22 umits/hr)
The following diagram shows a 4-step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation.a. Determine the capacity of this process.
b. Which action would yield the greatest increase in process capacity: (1) increase the capacity of Operation 1 by 15 percent; (2) increase the capacity of Operation 2 by 15 percent; or (3) increase the capacity of Operation 3 by 15 percent?
A manager must decide which type of machine to buy, A, B, or C. Machines costs are as follows:
Machine
Cost
A
$40,000
B
$30,000
C
$80,000
Product forecast, processing times on the machines, and setup times are as follows:
Processing Time Per Unit (minutes)
Product
Annual Demand
A
B
C
Setup Times (minutes)
Production Lots (units)
1
16,000
3
4
2
20
200
2
12,000
4
5
3
35
100
3
6,000
5
6
3
60
50
4
30,000
2
4
1
15
500
Machines operate 10 hours a day, 250 days a year. The manager wants to have a capacity cushion of 10%.
a. Assume that only purchasing costs are being considered. Which machines would have the lowest total cost, and how many of that machines would be needed?
b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $11 each, B machines have an hourly operating cost of $10 each, and C machines have an hourly operating cost of $12 each. Which alternative would…
Chapter 5 Solutions
Operations Management
Ch. 5.8 - Explain the meaning of the phrase Hours versus...Ch. 5.8 - Prob. 1.2RQCh. 5.8 - Prob. 1.3RQCh. 5.8 - Prob. 1.4RQCh. 5.8 - Prob. 1.5RQCh. 5.S - Prob. 1DRQCh. 5.S - Prob. 2DRQCh. 5.S - Explain the term bounded rationality.Ch. 5.S - Prob. 4DRQCh. 5.S - Prob. 5DRQ
Ch. 5.S - What information is contained in a payoff table?Ch. 5.S - Prob. 7DRQCh. 5.S - Prob. 8DRQCh. 5.S - Under what circumstances is expected monetary...Ch. 5.S - Explain or define each of these terms: a. Laplace...Ch. 5.S - Prob. 11DRQCh. 5.S - Prob. 12DRQCh. 5.S - Prob. 13DRQCh. 5.S - Prob. 1PCh. 5.S - Refer to problem1. Suppose after a certain amount...Ch. 5.S - Refer to Problems 1 and 2 Construct a graph that...Ch. 5.S - Prob. 4PCh. 5.S - Prob. 5PCh. 5.S - The lease of Theme Park, Inc., is about to expire....Ch. 5.S - Prob. 7PCh. 5.S - Prob. 8PCh. 5.S - Prob. 9PCh. 5.S - A manager must decide how many machines of a...Ch. 5.S - Prob. 11PCh. 5.S - Prob. 12PCh. 5.S - Prob. 13PCh. 5.S - Prob. 14PCh. 5.S - Give this payoff table: a. Determine the range of...Ch. 5.S - Prob. 16PCh. 5.S - Repeat all parts of problem 16, assuming the value...Ch. 5 - Prob. 1DRQCh. 5 - Prob. 2DRQCh. 5 - How do long-term and short-term capacity...Ch. 5 - Give an example of a good and a service that...Ch. 5 - Give some example of building flexibility into...Ch. 5 - Why is it important to adopt a big-picture...Ch. 5 - What is meant by capacity in chunks, and why is...Ch. 5 - Prob. 8DRQCh. 5 - How can a systems approach to capacity planning be...Ch. 5 - Prob. 10DRQCh. 5 - Why is it important to match process capabilities...Ch. 5 - Briefly discuss how uncertainty affects capacity...Ch. 5 - Prob. 13DRQCh. 5 - Prob. 14DRQCh. 5 - Prob. 15DRQCh. 5 - Prob. 16DRQCh. 5 - What is the benefit to a business organization of...Ch. 5 - Prob. 1TSCh. 5 - Prob. 2TSCh. 5 - Prob. 3TSCh. 5 - Prob. 1CTECh. 5 - Prob. 2CTECh. 5 - Identify four potential unethical actions or...Ch. 5 - Any increase in efficiency also increases...Ch. 5 - Prob. 1PCh. 5 - In a job shop, effective capacity is only 50...Ch. 5 - A producer of pottery is considering the addition...Ch. 5 - A small firm intends to increase the capacity of a...Ch. 5 - A producer of felt-tip pens has received a...Ch. 5 - A real estate agent is considering changing her...Ch. 5 - A firm plans to begin production of a new small...Ch. 5 - A manager is trying to decide whether to purchase...Ch. 5 - A company manufactures a product using two machine...Ch. 5 - A company must decide which type of machine to...Ch. 5 - Prob. 11PCh. 5 - A manager must decide how many machines of a...Ch. 5 - Prob. 13PCh. 5 - The following diagram shows a four-step process...Ch. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - A new machine will cost 18,000, butt result it...Ch. 5 - Remodelling an office will cost 25,000 and will...Ch. 5 - Prob. 1CQCh. 5 - Prob. 2CQCh. 5 - Prob. 3CQ
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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
- The following diagram shows a 4-step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation. 13/hr. 12/hr. 15/hr. 16/hr. Operation 1 Operation 2 Operation 3 Operation 4 a. Determine the capacity of this process. Capacity 15 per hour b. Which action would yield the greatest increase in process capacity: (1) increase the capacity of Operation 1 by 10 percent; (2) increase the capacity of Operation 2 by 10 percent; or (3) increase the capacity of Operation 3 by 12 percent? increase the capacity of Operation 2 by 10 percent Actionarrow_forwardA manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,000 per day, while twomachines will result in a fixed cost of $3,800 per day. Variable costs will be $20 per customer, andrevenue will be $45 per customer.a. Determine the break-even point for each rangearrow_forwarda. what is the relationship between design capacity, system capacity, and actual output. b. how is a projected output within the boundaries of the design capacity and system capacity?arrow_forward
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