Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 5, Problem 2P
In a job shop, effective capacity is only 50 percent of design capacity, and actual output is 80 percent of effective output. What design capacity would be needed to achieve an actual output of eight jobs per week?
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In a job shop, effective capacity is only 50 percent of design capacity, and actual output is80 percent of effective output. What design capacity would be needed to achieve an actual output c eight jobs per week?
A 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?
A process currently services an average of 52 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 85 percent of the current level in five years and management wants to have a capacity cushion of just 6 percent, what capacity requirement should be planned?
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
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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
- A 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.c. If expected annual demand is 12,000 units, which alternative would yield the higher profit?arrow_forwardIn a job shop, effective capacity is only 43 percent of design capacity, and actual output is 71 percent of effective output. What design capacity would be needed to achieve an actual output of 11 jobs per week? What is its effective capacity?a. The Design Capacity needed to achieve the required actual job outputs = (round to whole number)b. The Effective Capacity needed to achieve the required actual job outputs = (round to whole number)arrow_forwardA process currently services an average of 50 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 75 percent of the current level in five years and management wants to have acapacity cushion of just 5 percent, what capacity requirement should be planned?arrow_forward
- Dev A restaurant earns $3,950 in sales from 64 guests for Monday’s dinner. Four (4) back-of-the-house employees work the full three-hour dinner shift that night. What is the back-of-the-house team’s sales per person-hour rate? What is the back-of-the-house team’s covers per person-hour rate?arrow_forwardA process currently services an average of 55 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 85 percent of the current level in five years and management wants to have a capacity cushion of just 5 percent, what capacity requirement should be planned? Part 2 The needed capacity requirement is enter your response here customers per day. (Enter your response rounded up to the next whole number.)arrow_forwardA process currently services an average of 61 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 70 percent of the current level in five years and management wants to have a capacity cushion of just 5 percent, what capacity requirement should be planned? The needed capacity requirement is nothing customers per day. (Enter your response rounded up to the next whole number.)arrow_forward
- 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?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_forwardA process currently services an average of 50 customers perday. Observations in recent weeks show that its utilizationis about 90 percent, allowing for just a 10 percent capac-ity cushion. If demand is expected to be 75 percent of thecurrent level in five years and management wants to have acapacity cushion of just 5 percent, what capacity requirementshould be planned?arrow_forward
- How does the capacity analysis respond when many processes are running at the same time?arrow_forwardTwo manufacturing processes are being considered for making a new product. Process A is less capital intensive, with fixed costs of $60,000 per year and variable costs of $700 per unit. Process B has fixed costs of $400,000 annually, with variable costs of $300 per unit. What is the break-even quantity for the two processes? If annual sales are expected to be 700 units, which process should be selected? Operations and Engineering have found a way to reduce the cost of Process B, such that the fixed costs for this process decrease from $400,000 to $300,000 annually. All other costs remain the same. Does this change the process selection for the annual sales volume of 700 units?arrow_forwardPeter’s Paper Clips uses a three-stage production process: cutting wire to prescribed lengths, inner bending, and outer bending. The cutting process can produce at a rate of 220 pieces per minute; inner bending, 230 pieces per minute; and outer bending, 180 pieces per minute. Determine the hourly capacity of each process stage and the number of machines needed to meet an output rate of 14,000 units per hour. Round your answers for the hourly capacity of each process stage to the nearest whole mumber. Round your answers up for the number of machines needed to a whole number. Cutting process: Hourly capacity: pieces/hour Number of machines needed: machine(s) Inner bending: Hourly capacity: pieces/hour Number of machines needed: machine(s) Outer bending: Hourly capacity: pieces/hour Number of machines needed: machine(s)arrow_forward
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