EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Question
Chapter 7, Problem 15PA
(a)
Summary Introduction
Interpretation: The total flow time of a throughput dollar is to be calculated.
Concept Introduction:
Any flow unit, when flows through a process, follows L’s Law which states that the Work in Progress and is given by,
(b)
Summary Introduction
Interpretation: The average dollar inventory in the value chain is to be determined.
Concept Introduction:
The average dollar inventory in the system is the total WIP combining all stages.
(c)
Summary Introduction
Interpretation: The major stagethat is the best candidate for freeing up dollars for the air conditional manufacturer is to be determined.
Concept Introduction:
Any flow unit, when flows through a process, follows L’s Law which states that the Work in Progress in the process is the product of Flow time/ Cycle time and the Throughput/ Flow rate.
(d)
Summary Introduction
Interpretation: The largest level of average accounts receivable inventory is to be determined.
Concept Introduction:
Any flow unit, when flows through a process, follows Little’s Law which states that the Work in Progress and given by,
(e)
Summary Introduction
Interpretation: The process thatis demonstrated by flow time analysis.
Concept Introduction:
The flow time is an average time that a unit requires to flow through the process from the entry point to the exit point.
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The following information is made available for October, what is the throughput per hour?
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can someone walk me through this?
You supervise an aging production line that constantly needs maintenance and new parts. Last month you spent $25,000 replacing a failed controller. . The net installed cost of the new line is $600,000 with a useful life of 6 years. First year of operation will cost $100,000 and will generate annual revenues of $300,000. Each year the operating cost will increasse by $5,000 and revenues will fall $15,000. After 6 years the equipment will have a value of $100,000 in the next re-building of the line.
lets break this in to 4 sections.
1)the cash flow diagram
2) net present value of the costs
3) net present value of the costs
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5) Should the following plan be accepted if the interest rate is 15%
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