Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 5, Problem 20P
Remodelling an office will cost $25,000 and will generate savings of $3,000 the first year, $4,000 the second year, and $5,000 per year thereafter. How long will it take to recoup the initial cost of remodeling?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A company has a factory that is designed so that it is most efficient (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?
If a workstation can produce 1000 units in 100 hours and the actual workstation efficiency is only at 85%, what will be the approximate actual hours needed if the demand is 2,000 units?
During a job interview, Pam Thompson is offered a salary of $55,000. The company gives annual raises of 5 percent. What would be Pam’s salary during her fifth year on the job? (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D)
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.S - Prob. 18PCh. 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
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
- A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product AnnualDemand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 Click here for the Excel Data File a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole…arrow_forwardA 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_forwardAn electricity power plant was redesigned so that the old system consisting of a single large display screen which could be seen by all of a team of three operators was replaced by individual workstation screens for operators. This worked well until there was a problem which resulted in dangerous gases being released. The team of operators had great difficulty in finding the source of the problem and deciding what to do. Because they no longer have access to all the information, they have to spend time explicitly co-ordinating their understanding of the situation by talking to each other. Under the old system, the knowledge would be shared – one operator would know what was happening with another’s area of the plant without explicit communication. Although the team’s individual responsibilities would still have been clearly divided, the knowledge of the system would be shared. How could the new system of individual workstations be modified to make better use of distributed cognition?arrow_forward
- Please answer the question as quickly as possible A toy company has developed two new toys for possible inclusion in its product line for the upcoming Christmas season. Setting up the production facilities to begin production would cost $50,000 for toy 1 and $80,000 for toy 2. Once these costs are covered, the toys would generate a unit profit of $10 for toy 1 and $15 for toy 2. The company has two factories that are capable of producing these toys. However, to avoid doubling the start-up costs, just one factory would be used, where the choice would be based on maximizing profit. For administrative reasons, the same factory would be used for both new toys if both are produced. Toy 1 can be produced at the rate of 50 per hour in factory 1 and 40 per hour in factory 2. Toy 2 can be produced at the rate of 40 per hour in factory 1 and 25 per hour in factory 2. Factories 1 and 2, respectively, have 500 hours and 700 hours of production time available before Christmas that could…arrow_forwardYou are the operation manager of the soy factory, with only the existing manpower, what will you do to improve the production process and increase daily capacity of the factory?arrow_forwardA small firm intends to increase the capacity of a bottleneck operation for producing a product by adding a new machine. Two alternatives, A and B, have been identified and the associated costs and revenues have been estimated. Annual fixed costs would be $30000 for A and $25,000 for B; variable costs per unit would be $10 for A and $12 for B; and the revenue per unit would be $25. i. Find the total cost functions for alternatives A and B, and the revenue function ii. Draw both the total cost functions and the revenue function in the same figure. iii. Find the break-even point for the alternatives A and B and show it in the figure iv. Is there any volume of output at which both the alternatives yield the same profit? If so, show it in the figure. If not, identify the volume of output at which the alternatives are indifferentarrow_forward
- Give typing answer with explanation and conclusion manufacturing company is considering producing a new product. The variable cost of the new product is $60 per unit, and the total fixed costs are $75,000 for a month. The company could produce 1500 units per month, and sell the product for $125 each. What unit sales would result in a net income of $16,000?arrow_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_forwardAn executive conference center has the physical ability to handle 1,100 participants. However, conference management personnel believe that only 1,000 participants can be handled effectively for most events. The last event, although forecasted to have 1,000 participants, resulted in the attendance of only 950 participants. What are the utilization and efficiency of the conference facility?arrow_forward
- If a plant has an effective capacity of 6,400 and an efficiency of 88%, then its actual (planned) output =______units (enter your response as a whole number).arrow_forwardA small firm intends to increase the capacity of a bottleneck operation by adding a new machine.Two alternatives, A and B, have been identified, and the associated costs and revenues have beenestimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unitwould be $10 for A and $11 for B; and revenue per unit would be $15.b. At what volume of output would the two alternatives yield the same profit?arrow_forwardA fast-food restaurant has a drive-thru window and during peak lunch times can handle a maximum of 60 cars per hour with one person taking orders, assembling them, and acting as cashier. The average sale per order is $9.50. A proposal has been made to add two workers and divide the tasks among the three. One will take orders, the second will assemble them, and the third will act as a cashier. With this system, it is estimated that 85 cars per hour can be serviced.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.
Process selection and facility layout; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=wjxS79880MM;License: Standard YouTube License, CC-BY