Patricia Zell, a dollmaker from Olney, Maryland, is interested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. The initial investment required for plant and equipment is estimated at $25,000. Labor and material costs are approximately $10 per doll. If the dolls can be sold for $50 each, what volume of demand is necessary for the Tiny Trisha doll to break even?
Want to see the full answer?
Check out a sample textbook solutionChapter 6 Solutions
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
Additional Business Textbook Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Business in Action (8th Edition)
Operations Management: Processes and Supply Chains (11th Edition)
- Jericho Inc. is a large logistics company that focuses on the efficient operations of its warehouses to speed the picking of customer orders for delivery. Through the use of intelligent robots and strategic placement of inventory, Jericho’s lead development team has determined the best way to layout its inventory so the amount of movement is limited. As such they have a very good understanding of which costs are variable and which costs are fixed. Explain which cost estimation method is being used by Jericho.arrow_forwardAs the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 2 springs, and 4 clamps. The base is assembled from 1 clamp and 2 housings. Each clamp has 1 handle and 1 casting. Each housing has 2 bearings and 1 shaft. There is no inventory on hand. A. Design a product structure noting the quantities for each item and show the low-level coding. B. Determine the gross quantities needed of each item if you are to assemble 50 brackets. C. Compute the net quantities if there are 25 of the base and 100 of the clamp in stock.arrow_forwardFour things must be known about material inputs in standard development? A. Type of material needed, quality of materials, quantity needed, and price (cost) per unit B. Material specifications, quantity needed, unit cost, and quality of materials C. unit cost, predetermined cost, material quality, and type of material needed D. actual cost, predetermined cost, material specifications, quantity neededarrow_forward
- As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 1 spring, and 3 clamps. The base is assembled from 2 clamp and 1 housing. Each clamp has 1 handle and 1 casting. Each housing has 2 bearing and 2 shaft. There is no inventory on hand. Part 2 a) Design a product structure noting the quantities for each item and show the low-level coding. Match each number in the structure below with the corresponding item. Number Item I Bracket II Spring Subscript left parenthesis 1 right parenthesis III Clamp Subscript left parenthesis 3 right parenthesis IV Bearing Subscript left parenthesis 2 rightarrow_forwardAs the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, two springs, and four clamps. The base isassembled from one clamp and two housings. Each clamp has one handle and one casting. Each housing has two bearings and one shaft. There is no inventory on hand.a) Design a product structure noting the quantities for each item and show the low-level coding.b) Determine the gross quantities needed of each item if you are to assemble 50 brackets.c) Compute the net quantities needed if there are 25 of the base and 100 of the clamp in stock.arrow_forwardAs the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 2 springs, and 4 clamps. The base is assembled from 1 clamp and 1 housing. Each clamp has 1 handle and 2 castings. Each housing has 1 bearing and 2 shafts. There is no inventory on hand. Part 2 a) Design a product structure noting the quantities for each item and show the low-level coding. Match each number in the structure below with the corresponding item. Number Item I Spring Subscript left parenthesis 2 right parenthesisSpring(2) II Housing Subscript left parenthesis 1 right parenthesisHousing(1) III Casting Subscript left parenthesis 2 right parenthesisCasting(2) IV Shaft Subscript left parenthesis 2 right parenthesisShaft(2) Bracket Base(1) Clamp(1) Handle(1) Clamp(4) Bearing(1) Handle(1) Casting(2) IIIIIIIV Part 3 b) Determine the…arrow_forward
- Because of the coronavirus, Cafes and restaurants are going to be open between 8 a.m. and 20 p.m. , and with 50% capacity. Imagine that the Ministry of Health thinks Coronavirus can last for years and wants to develop a system that can be used to fulfill the above rule. Write a report about that... 1- Write a “problem definition”, “objectives” and “issues to be solved” for this rule, as a system analyst you are. 2- What system development methodology do you use and why?arrow_forwardDetermine the availability for each of these cases:a. MTBF = 40 days, average repair time = 3 daysarrow_forwardProduct Name: SMARTPAK (Smart Backpack) Product Description: The SMARTPAK makes use of cutting-edge technology to give you several benefits. It is easier to use because it contains several space-saving features and useful functionality. In this section, we go through the product's physical, mechanical, and chemical qualities, as well as how it may be used as a consumer commodity and an industry input. Task: (estimate, assume, anything will do); this is just a proposal. Plant Size and Production Schedule: Indicate minimum and maximum rated capacity of production. The number of shifts perday, the number of operating days per yeararrow_forward
- Colonial Furniture produces hand-crafted colonial style furniture. Plans are now being made for the production of rocking chairs, dining room tables, and/or armoires for the next week. These products go through two stages of production (assembly and finishing). The following table gives the time required for each item to go through these two stages, the amount of wood required, and the corresponding unit profits, along with the amount of each resource available next week. Rocking Chair (RC) Dining Room Table (DRT) Armoire(ARM) Available Assembly (minutes) 100 180 120 3,600 Finishing (minutes) 60 80 80 2,000 Wood (pounds) 30 180 120 4,000 Unit Profit $240 $720 $600 Formulate a complete linear programming model that would determine the production levels that would maximize profit. Make sure to identify the decision variables, objective function and constraints. Using Excel’s Solver: what is the optimal solution? In…arrow_forwardCalifornia Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replacethe old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $85,000 per month and a variable cost of $1.25 per bag. Clunker has a fixed cost of only $44,000 per month, but a variable cost of$ 1.75. Selling price is $2.50 per bag.a) What is the crossover point in units (point of indifference) for the processes?b) What is the monthly profit or loss if the company changes to the Hi-Speed shredder and sells 60,000 bags per month? c) What is the monthly profit or loss if the company stays with Clunker and sells 60,000 bags per month?arrow_forwardNumerous IT companies are staffed by Tip Top Staffing with personnel qualified for certain projects. Lisa Nuevo and Bill Goodman are developing the logical model for Tip Top's billing and records system with the use of DFDs, a data dictionary, and process descriptions. While working on the logical basis of the system, Lisa realized that Tip Top's data forms for job applications may be enhanced. Better forms: a problem with physical implementation? By considering how something will be completed, is Lisa deviating from the work at hand?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations 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 LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.